VA Loan

boston real estate va loan

The Veterans Administration backed home loan is an outstanding option for eligible individuals ready to purchase property. Basically what it boils down to is the VA will guarantee the loan for the bank against loss, meaning you as the veteran don’t have to pay a PMI, and can purchase a property with zero money down. There is a funding fee that varies depending upon a few factors, one of which is if it is your first time using your loan, another being the amount of down payment keeping in mind you can do zero.

Straight from the VAs websiteWho’s Eligible

  • Veterans
  • Active duty personnel
  • Certain reservists and National Guard members
  • Surviving spouses of persons who die on active duty or die as a result of service-connected disabilities
  • Certain spouses of active duty personnel who are (a) missing in action, (b) captured in line of duty by a hostile force, or (c) forcibly detained by a foreign government or power

The below table is from VA Pamphlet 26-7 Chapter 8: Borrower Fees, and Charges, and the VA Funding Fee.

Type of Veteran Downpayment Percentage for First time Use Percentage for Subsequent Use
RegularMilitary None5% or more10% or more

2.15%

1.50%

1.25%

3.3%   *

1.50%

1.25%

Reserves/National Guard None5% or more10% or more

2.4%

1.75%

1.5%

3.3%   *

1.75%

1.5%

Keep in mind veterans receiving a monthly disability payment from the VA are exempt from the fee, which will be reflected on your certificate of eligibility. To get a copy of the COE you can go to the VAs Ebenefits website, register, or log in and print the certificate.

Multi Family Homes

The eligible veteran can purchase a multi family home with the VA Loan. There are however additional requirements. In order to purchase the property the veteran needs to show a 6 month cash reserve. An example is a mortgage which payment is $2000.00 a month would need to show a reserve of $12000.00 to cover 6 months worth of payments. This reserve can be proven through the use of various investment vehicles, that the veteran can liquidate if need be. A whole life insurance plan with a cash value, a Roth IRA, and an investment mutual fund, are examples of assets that can be used as a cash reserve.

As always I welcome any questions, comments, or concerns. Feel free to email me TheBostonMovesGuy@Hotmail.com or info@workwithseanpaul.com or contact us by phone.

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