Financing in Mobile>Question Details

Tari, Renter in Mobile, AL

how do VA loans work when buying a home for the first time?? and How does that effect your monthly payment?

Asked by Tari, Mobile, AL Wed Sep 26, 2012

First time buyers, will be using va loan. Should we wait and save up a 20% down payment or ....??

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Maria Cipollone’s answer
A Va loan is one of the best mortgage loans for first time homeowners because they will provide you with 100 percent financing with no mortgage insurance on your home. Before you start the paperwork you will need a certificate of eligibility (COE). In most of the cases you can obtain the certificate online in just minutes. Start shopping around for a mortgage broker that handles Va loans, get pre-approved for the amount that you can afford, contact a real estate agent and start the search for your new dream home.

Best of Luck,

Maria E. Cipollone

Century 21
2 votes Thank Flag Link Wed Sep 26, 2012
When it comes to home loans in the United States, the means and methods run the gamut. And the criteria and characteristics of each type of loan–not to mention the jargon involved–can be confusing.

Veterans Affairs loans, however, are rising in popularity among veterans who are looking for a flexible lending option that doesn't require a down payment...

Although the eligibility details for VA loans can get pretty involved, millions of active military, veterans and surviving spouses are eligible to participate in the program. You’re likely in the mix if you meet one of the following conditions:

> You served 181 days on active duty during peacetime;
> You served 90 days on active duty during wartime;
> You served six years in the Reserves or National Guard, or
> Your spouse died in the line of duty or from a service-connected disability.

It’s important to remember that being eligible for a VA loan doesn’t mean you’re guaranteed one. Military borrowers will have to meet both VA and lender requirements, covering everything from the borrower’s credit and debt-to-income ratio to the property’s condition and market value...
4 votes Thank Flag Link Thu Apr 30, 2015
If you qualify for a VA loan, you most likely would not need a down payment. There are a couple lenders in Mobile that do a good job with VA loans. Please feel free to contact me at 251-402-1193 and I will be glad to pass along the information.
1 vote Thank Flag Link Wed Sep 26, 2012
VA mortgage benefits that only come with a VA mortgage:

Easier qualification standards
Less strict credit and income standards
No down payment required
Bad Credit Score VA loans Down to 550!…
0 votes Thank Flag Link Sun Aug 2, 2015

VA Mortgage Loans are available today for both honorably discharged Vets and active duty military personnel. Here are some of the great features of this fantastic program:


- Up to 100% financing, with no down required.

- No monthly mortgage insurance added to your payment.

- More lenient credit qualifying standards than other types of mortgage loans.

- Low rates compared to other loan programs.


-Order your Certificate of Eligibility. A Florida VA loan lender can order your COE quickly for you, or you can go directly to the VA to obtain a copy. If discharged, you will need your DD214. The next step is to get pre-approved with an experienced VA lender.

-2 years tax returns

-Last 2 paycheck stubs

-Last two bank account statements

-600+ credit score (typically 640 is what most lenders look for)

-Same line of work for the past two years

-Money for closing costs

Please contact me and I will put you in touch with the best VA lender!!!
Andrew 954-394-7185 (prefer text first)
0 votes Thank Flag Link Thu Jun 11, 2015
No Down Payment Necessary.
Homebuyers will usually need at least a 5 percent down payment for conventional loans or a 3.5 percent down payment for FHA financing. On a $200,000 loan, that's $10,000 for conventional borrowers and $7,000 for FHA. For many first-time homebuyers, coming up with that kind of cash up can be challenging. Being able to purchase with $0 down means VA borrowers don't have to spend years saving to scrape together a big down payment.
Less Stringent Qualifications.
Many first-time homebuyers might not yet have a strong credit history, which can make it more difficult to get approval for a mortgage or qualify for an affordable interest rate. Since the VA Loan is government-backed, VA Loans are easier to qualify for at competitive rates.
Lower Monthly Payments.
Since VA Loans don't require the added monthly expense of private mortgage insurance (PMI), they tend to leave more money in your pocket each month. In addition, the competitive VA Loan rates can save a typical buyer thousands over the lifespan of the loan.
0 votes Thank Flag Link Mon Feb 23, 2015
VA loans allow for $0 down up to the VA $0 down payment limit for your county or city. Even if you want to buy over the allowable VA zero down payment limit, you can do so with a 25% down payment on the difference between the maximum $0 down loan and the sales price.

I think your next step is to get with a good mortgage lender and let them take you through the prequalification process, and they can guide you further. We lend in all 50 states, click on my picture if you'd like my contact information to talk further. Good luck.
0 votes Thank Flag Link Thu Feb 19, 2015
If you think you might qualify for a VA loan, it's definitely worth looking into. You probably won't need a down payment if you qualify. However, no down payment will affect your monthly payments. If you already have a home in mind, I would talk to a financial officer to see what you can afford as far as payments are concerned. Home buying can be tricky your first time so consult as many professionals as you can.
0 votes Thank Flag Link Thu Feb 19, 2015
Not sure whether you have already bought the house or still thinking to buy a home. You can buy a home with no money down VA loan if you qualify.

Visit my site or let us know here if you have any further questions on Va loan.
0 votes Thank Flag Link Thu Feb 19, 2015
Hi Tari,

Thank you for your service.

VA is hands down the best mortgage available for a number of reasons.

There are a couple of ways your monthly payment will be affected:

1) Your payment will be lower because VA does not have mortgage insurance.
2) VA does charge an upfront Funding Fee which will increase your payment slightly because it's financed into your loan,
3) Your total payment will be higher if you do zero money down VS 20% down simply because you're financing 20% more.

Here is what you want to consider when deciding whether or not you want to put money down.

What is your break even point?

Here's what I mean: Let's say you're looking at purchase price of $250,000. 20% down would be $50,000. The question is how long will it take you to recoup that $50,000. The way we do that is by dividing the down payment by the difference in the monthly payment. So here we go. At 4% your PI payment on $250,000 is $1,219.20 and at $200,000 it's $969.15 for a difference of $250.05 per month. Now we divide the down payment by the difference, $50,000 / $250.05 = 199.96 months or 16.66 years. Another way to look at is this. You're putting $50,000 down right now to save $250 per month for the next 16.5 years!

I would rather see you keep that money in some other investment working for you where you have access to it in the event of an emergency instead of tied up in your home.

Take a look at the recommendations from some of my past clients on my Trulia profile by clicking the link below my phone number.

Please feel free to contact me for more information or help.

John Burke
Senior Mortgage Banker
Lending in ALL 50 states
Great Plains National Bank
NMLS# 787231…
0 votes Thank Flag Link Fri Sep 19, 2014
Is it true that when you purchase a house with a va loan the government pays for the home
0 votes Thank Flag Link Fri Jun 27, 2014
Thank you for your service to our country. Everyone appreciates the job that you all do! As a result of everything veterans go through, the country offers a loan where they can buy a house with no down payment. This is a huge savings and, as long as the credit score and debt to income ratio are in line, makes the home-buying process open to a lot more people. Talk to a loan officer or banker about your particular recurring debt ( for example: student loans, child suppot, credit card monthly payment, car payment, etc.).
The interest rates are very favorable at the moment and in the Mobile area, the housing market is appreciating to some degree, but there are atill a lot of very good buys! Good luck to you and I wish you all the best!
0 votes Thank Flag Link Fri Oct 4, 2013
There are great benefits to purchasing your first home with a VA Loan. No down payment is necessary, the qualifications are less stringent and your monthly payments are lower. You will need a Certificate of Eligibility, as well as a sufficient debt-to-income ratio. The professionals at Globenet Realty are well-qualified to assist you in any type of loan you may need.

Please visit us online at or call us at 714.988.8399
0 votes Thank Flag Link Thu Oct 3, 2013
Good morning Tari and THANK YOU for your Service to our Nation!

The VA Guaranty program is an excellent way for qualified Veterans to buy a home with no downpayment. In addition the Seller can pay all the Veteran's closing costs.

Your first step should be to meet with an experienced Mortgage Banker who has worked with VA loans. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.

If you are qualified for VA Guaranteed Financing then you can begin shopping for your home. Beware that many Sellers may be wary of 100% financing. Your Realtor and your Mortgage Banker will need to be explain in detail how this program works so as to alleviate any fears on the part of the Homeowners.

As to whether or not you should wait to save a down payment of 20%, that is really a personal choice in terms of monthly payment. The more money you put down obviously the lower your mortgage payment will be. How long will it take you to save the 20% down payment? If that's a short period of time---a few months---and you feel more comfortable with a lower monthly payment than what you can get today with a Veteran's Loan, then go for it. If on the other hand it will take a couple of years, you must factor in the variable that interest rates might be higher in the future and even with your down payment you might find your monthly payment is the same as what you can get at today's low interest rates.

Find a great local VA Approved Mortgage Banker here:

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Thu Sep 27, 2012
Hello Tari,

The VA loan is a fantastic loan option for first time home buyers. It allows you to not only finance 100% of the homes purchase price but it also allows for the seller to pay for your closing cost so literally you can get into a home with absolutely no money out of pocket. Also, in addition to that, it will give you the lowest monthly payment due to the fact that there is no monthly mortgage insurance on VA loans. I am licensed in the state of Alabama and I would love to assist you further. I have family that serve in the military and I take great pride in helping current active military personal and veterans obtain financing. Feel free to contact me at any time.

Joshua Lerette - Sr. Loan Officer
Residential Finance Corporation
0 votes Thank Flag Link Thu Sep 27, 2012
If you eligible for a VA mortgage, then that is likely going to be your best option. Trying to save 20% for a down payment wll take quite some time.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes Thank Flag Link Wed Sep 26, 2012
Hi Tari,
The V.A. loan truly is the best loan for a first time buyer. There is no down payment and all of the closing costs can be paid by the seller if they agree. By getting a loan now, you'll probably have an extremely low interest loan which is what affects your monthly payment most of all, thereby letting you all look at houses at a price point higher than you would normally be able to afford. The reason that people save to put 20% down, is so that they won't have a Mortgage Insurance Payment each month added to the principle, interest, homeowners insurance and taxes. With a V.A. loan, there is a "funding fee" which acts as the mortgage insurance for the loan, but is added to the loan in a lump sum at the beginning. It is 2.15% of the loan amount and is less expensive each month than Mortgage Insurance.
Hope this is some help. There is lots more to know. Let me know if I can be of help.
Barbara Stanton
Roberts Brothers, Inc.
0 votes Thank Flag Link Wed Sep 26, 2012
You should first go into your local VA office and talk to them:
You will need to apply for a Certificate of Eligibilty first.
The VA office can help you in many ways.

The biggest advantage is the NO DOWN feature:
But you will be paying for that in several ways;
Your Interest Rate will be higher
You will have to pay a FUNDING FEE
You may have some sellers refuse to sell to you because of restrictions and Closing Costs.
It is a little harder to qualify for a VA loan.

I would recommend doing it; you can always move up in a couple years; but you can get in to a house now with VA.

Good luck and may God bless

Oh, and, thanks for serving!
0 votes Thank Flag Link Wed Sep 26, 2012
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