VA Home Loans
Minneapolis, MN: VA Loans are some of the most amazing home loans in the market. It really is a true benefit for the service you’ve provided to this country. The major benefits of a VA loan come in two forms:
- Zero down payment
- No Mortgage Insurance
Zero down payment is pretty easy to understand. Saving for a down payment is one of the biggest hurdles stopping many from buying a home. No mortgage insurance is also huge. Generally speaking, mortgage loans where you do not put at least 20% down payment will need mortgage insurance to offset the lenders risk. It can be expensive.
Take for example a $200,000 home. On an FHA loan, you would need a minimum down payment of $7,000 (3.5%), and along with paying back the actual loan, property taxes, and home owners insurance, you would also have $213.81 in monthly mortgage insurance. With VA home loans, that would be zero and zero! How cool is that?
VA Loan Limits
VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a downpayment. These loan limits vary by county, since the value of a house depends in part on its location.
The basic entitlement available to each eligible Veteran is $36,000. Lenders will generally loan up to 4 times a Veteran’s available entitlement without a down payment, provided the Veteran is income and credit qualified and the property appraises for the asking price.
Lenders need a copy of your VA Certificate of Eligibility (COE) to verify your entitlement. Most experienced VA Loan Officers can obtain that for you.
Here in Minnesota and Wisconsin, you can get zero down payment on loans up to $417,000. You can get bigger loans too, but over $417,000 – and you’ll need a down payment. Contact your local VA Lender to determine the exact amount of down payment required.