Financing in 19144>Question Details

andthenthere…, Home Buyer in Philadelphia County,...

VA - deposits aren't required but if you're eligible can you still put some some money down, esp if you don't have the 20% for an FHA?

Asked by andthentheresmaude, Philadelphia County, PA Thu Jan 5, 2012

Will VA let u? We'd like to keep our payments as low as possible, but one lender said if you want to do a down payment do FHA, we don't have enough deposit for FHA to avoid PMA, I've heard 2 different things, 1 VA will let you still make a partial down payment, and 2) that they won't.

Also does anyone know of any pre-payment penalties for VA mortgages say if you want to pay ahead or pay off before the mortgage is over?

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Why on earth would you not be allowed to make a down payment? It's more likely the loan officer wanted you to take a larger mortgage for the larger commission. Find a new lender. VA loans don't carry any prepayment penalties, pay down your loan all you want. The VA gets their funding fee either way.

An advantage of putting money down on your VA loan is that your finding fee (that's added on top of your loan increasing your repayment) is lower if you put more down. Since these figures may change, I'll omit those percentages. If you have and want to put down more money, you can but don't feel obligated to if you'd rather keep that money for a rainy day.
Web Reference: http://RobWeber.com
1 vote Thank Flag Link Thu Jan 5, 2012
You can always put a higher down payment than is required on ANY loan.
0 votes Thank Flag Link Sat Jan 7, 2012
Short answer is: Yes! 0 down is an option, not a requirement.
0 votes Thank Flag Link Fri Jan 6, 2012
I think you got your information from someone who is not familiar with VA mortgages. Rob is right, you can put down any amount you want on a VA. On a FHA you will always have some MI even if you put 20% down. It is a conventional mortgage that there is no mortgage insurance if you put 20% down. You need to speak to a knowledgeable mortgage originator.
0 votes Thank Flag Link Fri Jan 6, 2012
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