No Money Down VA Home Loan | Colorado Springs VA Home Loans
A VA home mortgage is the best loan you can get when buying a home. Remember, you have to meet the VA eligibility guidelines. However, if you do, the benefits allow you to purchase a new home with no money down.
Most mortgages require a minimum of 3 ½ to 5% as a down payment, and terms get most favorable when you put 15 to 20% down. As an example, at 5% down a $200,000 purchase would require a $10,000 down payment with a conventional loan. Additionally, most conventional loans need an additional insurance policy if you put less than 20% down.
With the VA 0% down loan, you get lower interest rates, no additional mortgage insurance, and no required down payment.
That means if you buy $200,000 home you put zero dollars as a down payment. Keep in mind; there may be other fees involved with getting your loan or purchasing the house. Please talk to one of our specialists about ordinary expenses most veterans experience in the real estate market.
One item servicemembers need to know about is the VA funding fee. VA requires a percentage of your purchase price to be charged and then paid to the Veterans Administration as a “funding fee.” This fee helps to fund the VA home loan program and allows all veterans to benefit from this fantastic loan. If you do decide to put money down VA will lower your funding fee which could save you thousands of dollars in the coming years.