Good morning Desperatly Hoping,
Typically the VA Funding Fee is financed into the total loan. While this is disclosed to you as a closing cost on your Good Faith Estimate (GFE), and you have a Seller's concession for closing costs, most Lenders include the VA Funding Fee in the total loan made to the Veteran.
Eligible Borrowers: Veterans of the Armed Forces and National Guard. Non-veterans are not eligible except as the spouse of an eligible Veteran. (Subject to Veteranâ€™s individual Certificate of Eligibility)
Eligible Property Types: 1-4 Family Homes (although the Underwriting criteria for multi-family homes are so restrictive that you should basically focus on Single Family homes).
VA Approved Condominiums are eligible. Find VA Approved Condominiums here:
Maximum Financing: 100% LTV. Loan Limit: $417,000 or high-cost county loan limit.
Seller Contributions: All closing costs and discount points may be paid by the seller, regardless of amount.
Qualifying: We qualify a Veteranâ€™s Loan with two calculations. The first is a standard debt-to-income percentage ratio as in FHA and Conventional loans. The second calculation focuses on the monthly â€œresidual incomeâ€ depending on family size after a Veteran has paid the mortgage, income taxes, utilities, commuting costs, child care expenses and other debt servicing. This is a very realistic manner to qualify a homebuyer as it closely resembles a family budget. The Veteranâ€™s Administration sets the baseline residual income based on family size and location of the property.
Mortgage Insurance: NONE. There is no monthly mortgage insurance paid on VA Loans. The VA Guarantees the mortgage loan and charges an upfront Guaranty Fee as a percentage of the loan amount (based on the Veteranâ€™s standing and use of the Certificate of Eligibility) that is financed with the loan.
Thank you for your Service to our Nation!