With so many New Mexico veterans taking advantage of the Veterans Administration loans to purchase homes, there is some mis-information about what exactly the “zero down” VA loan means.
The VA purchase loan indeed offers the veteran a zero down payment, meaning the VA will allow financing of 100% of the property’s purchase price. But that doesn’t mean there will be no out-of-pocket costs. In purchasing a property, there are closing costs associated with that purchase, and these are the responsibility of the buyer.
The VA does not cover these closing costs and they do not allow these fees to be rolled into the new loan.
When Indigo Mortgage does a pre-qualification for veterans, we always cover this with the veteran so they know what costs they’d likely have to pay at closing. We often find that online lenders and big national lenders are not advising veterans about these fees that will be part of their closing costs. This can and will cause problems come closing time.
Remember Zero Down VA loans do not mean zero out of pocket expenses. If you’re a veteran looking to purchase a property anywhere in New Mexico, call Indigo Mortgage for a free consultation and pre-qualification.