VA Home Purchase
Purchasing your new home with a VA loan has many advantages. The primary one being that for VA home purchase loans there is no down payment required. There are limits on the size of the loan.
- New Loan Limits for 100% financing have increased, click this link.
- New Loan Limits for High Cost Areas 100% financing increased to $726,525. Use this link for details.
In addition, loan closing costs, including an impound account for property taxes and insurance can be included into the new loan. This means you can move into your home with no money out of your pocket. With other loans such as FHA and Conventional there is typically a 3.5% – 5.0% minimum down payment, closing costs and impounds are not included into the loan amount.
For VA loans exceeding the high cost limits do require a down payment. The down payment is a simple calculation. It is 20% over the maximum high cost limit of $726,525.
Example:
Purchase price $800,000 (located in a high loan limit area)
0-$726,525, no down payment
$800,000 – 726,525 = $73,475 x 20% = $14,695
In this example the veteran must have a down payment of $14,695.
Another advantage is the required minimum credit score for VA home purchase loans is less than the previously mentioned loans. There is still a minimum requirement but it is less than other types of loan programs.
To make your home hunting more successful we can evaluate your credit and income documentation and determine what the maximum loan amount you can qualify for. Presenting a pre-qualification letter with your offer to purchase tells the seller you are serious and if they choose your offer have confidence you can close the transaction.
We can close purchase transactions in 30 days or less depending how quickly you want to move in.
Questions, Call today, speak with a VA Expert at 714-402-3418