For veterans seeking a home loan, a VA mortgage offers a range of benefits and flexibility that make homeownership more accessible. At Indigo Mortgage, we’re dedicated to helping veterans take full advantage of the great opportunities provided by VA loans. Here’s a look at the options available, including recent updates, that make VA loans even more beneficial for eligible veterans.
VA Jumbo Loans with No Down Payment
One of the biggest recent changes to VA loans is the removal of down payment requirements for VA Jumbo loans. In the past, veterans seeking loans above the standard conforming limit—often referred to as Jumbo loans—needed to make a down payment based on their available VA entitlement. However, this down payment requirement has been eliminated. As long as a veteran has full eligibility (meaning all prior VA loans are paid off or otherwise settled), they can now finance the entire loan amount with zero down payment. Whether purchasing a home for $150,000 or well over a million dollars, veterans can secure a home without having to worry about upfront costs if their eligibility is intact.
Multiple Uses of VA Loan Eligibility
Another great benefit of VA loans is the flexibility in eligibility. Veterans are allowed to use their VA loan benefits more than once throughout their lifetime, as long as they meet certain conditions. If a veteran has fully paid off a previous VA loan, they can restore their entitlement and use it again for a new loan. This option allows veterans to continue benefiting from their VA loan privileges even when buying or refinancing multiple properties over time.
No Monthly Mortgage Insurance Requirement
VA loans stand out among other loan options by not requiring monthly mortgage insurance, regardless of the loan-to-value (LTV) ratio. Conventional loans typically require private mortgage insurance (PMI) when the borrower puts down less than 20% of the home’s value, but VA loans offer an insurance-free alternative. This unique feature can significantly reduce a veteran’s monthly mortgage payment, making it easier to manage finances and ultimately making homeownership more affordable.
Understanding the VA Funding Fee
While VA loans do not require mortgage insurance, they do include a one-time VA funding fee. This fee varies depending on the veteran’s loan usage history: for first-time users, the fee is 1.4% of the loan amount, while for subsequent uses, it rises to 3.6%. However, veterans who receive disability benefits from the VA (10% or more) are exempt from paying this fee, making VA loans even more affordable for disabled veterans.
Contact Indigo Mortgage for Guidance
Navigating the details of VA loans can sometimes be complex, and that’s where Indigo Mortgage can help. Our team specializes in helping veterans understand the full range of VA loan options available to them. From first-time purchases to refinancing and Jumbo loans, we’re here to make the home-buying process as smooth and rewarding as possible for those who served.
Whether you’re a first-time homebuyer or considering refinancing, reach out to Indigo Mortgage to learn more about how a VA loan can benefit you.