One of the benefits for veterans is the 0% down VA loan, but like others have mentioned there will be other costs. VA allows for the seller to contribute up to 4% of the loan amount toward the buyers expenses, so you MAY be able to purchase with no money of your own.
One other thing to consider is first time buyer loans. If you're really buying in the 55106 area, if you meet the income and purchase price guidelines you may be able to use things like the MN Housing, CityLiving or similiar programs even if you are not a first time buyer, as long as you haven't used such a program in the past. Just another benefit of being a veteran. Those programs offer a below market interest rate may provide down payment and closing cost assistance.
I'm happy to answer any additional questions you might have.
Sometimes you will qualify for more than you are comfortable with.
I would love to assist and wish you well on your home search.
2) There are still closing costs however that can be almost 3.5% of the sales price. Any REO/short sale properties the bank will only do 3% of your closing costs, so you will probably have another $1500 to contribute. If you buy from a traditional seller we can ask them to cover 4%, and this will allow us to rebate you on the appraisal, etc...
3) Inspection $300 and appraisal typically $450 bucks.
4) Earnest money does not have to be that large...$500 I have even seen on traditional sales. Sometimes with bank owned properties they have a specific amount they want, which would be higher.
To start the process you will want to choose a Realtor & Loan officer. The majority of all buyers choose a Realtor and then use their lender referral, because we tend to work with some of the best lenders in MN. I would certainly love the opportunity to be interviewed if you are considering hiring a realtor since I do a lot of work in the zip code you are buying in. I helped one of my best friends go VA 6 month's ago and it is a wonderful loan product!
If you have already chosen a Realtor good luck!
I have a great loan officer who loves working with Veterans in this area. Give me a call this weekend and we can discuss this. Also, thanks for serving.
Greater Midwest Realty