The Veterans Administration offers government guaranteed loans to veterans from World War II through the second Gulf War. Many National Guard members and reservists are also eligible for the no-downpayment mortgages.
Generally, Guard members and reservists who were activated for the Gulf War after August 2, 1990, are eligible for a VA guaranteed loan if they were on active duty for 90 days or more and were honorably discharged. Peacetime veterans are also eligible if they served at least six years.
The biggest advantages of VA loans are you don’t need a down payment and the sellers can pay all the closing costs for a true nothing down deal. Also, there are no mortgage insurance fees, although the VA does charge a 2 percent funding fee. However, that too can be paid by the seller as part of the closing costs. Qualifying can be more flexible than other mortgage programs, and if you run into problems with a job loss later on, the VA is more willing to help.
Disadvantages are that the loan limit tops out at $240,000, and if you reuse your eligibility, the funding fee goes up depending on your down payment. Of course, if your down payment were 20 percent or more, conventional financing would avoid both.
Generally, Guard members and reservists who were activated for the Gulf War after August 2, 1990, are eligible for a VA guaranteed loan if they were on active duty for 90 days or more and were honorably discharged. Peacetime veterans are also eligible if they served at least six years.
The biggest advantages of VA loans are you don’t need a down payment and the sellers can pay all the closing costs for a true nothing down deal. Also, there are no mortgage insurance fees, although the VA does charge a 2 percent funding fee. However, that too can be paid by the seller as part of the closing costs. Qualifying can be more flexible than other mortgage programs, and if you run into problems with a job loss later on, the VA is more willing to help.
Disadvantages are that the loan limit tops out at $240,000, and if you reuse your eligibility, the funding fee goes up depending on your down payment. Of course, if your down payment were 20 percent or more, conventional financing would avoid both.
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