Part two of our series, "Which loan is right for you", covers the VA loan set up through the Veteran's Administration.
If you're a veteran with active duty service, who was not dishonorably discharged, you may want to consider a VA loan. Through the Veteran's Administration you can borrow 100% of the loan amount. The main limitation is quite obvious, you must be a veteran have a Certificate of Eligibility (COE). The COE can be requested by you or your lender. VA loans also require a VA appraisal which can also be ordered by your lender. While you can borrow 100% of the loan amount there is a loan limit. However, the limit is pretty reasonable and is generally $417,000. There is one catch, all veterans must pay a funding fee except those exempt due to receipt of disability compensation. The funding fee can range from 0.5% to 3.3% but this amount can be added into the loan.
Does this loan sound right for you? If so, speak to your lender and see if you qualify. But, before you start making calls, wait until tomorrow for the final of our three part series. You may find another loan that will work for you.
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