Today I’m joined by special guest Trever Kerr from Gateway Mortgage for our third “Mortgage Minute.” 

Our topic this time is VA loans. The VA loan is an amazing loan product helping veterans afford homes. As many people know, the product is 100% financing. But the best thing about VA loans is that there’s no monthly mortgage insurance charge. 

Usually when you put down anything less than 20% on a home, you will be required to pay a monthly mortgage insurance fee. However, this is not the case with the VA loan. The VA loan is 0% down and doesn’t charge any monthly premium. This creates great savings

Most veterans I’ve come across have the assumption that they can only make use of the VA loan once in their lifetime. While it’s true that the VA loan can only be used for primary residences, there are instances where it can be used twice. As long as the amount spent on the home is over $144,001, the VA loan may be used twice. It seems like an unusual number, but it’s simply the way things have been set up. 

There is a cap for the loan, though. Usually on a second home, this cap will sit at about $297,000. 

That aside, there are other benefits to this loan product. Veterans with a disability don’t need to pay a funding fee, which helps save money on closing costs

“This loan can help put veterans into homes with next to nothing.”

With this loan, Trever and I have helped to put veterans into homes with next to nothing. Sometimes, they even get a small amount of money back at the closing table. 

Locally, the Texas Vet Program is an amazing extension of the VA loan. This program does charge a participation fee, but ultimately saves thousands in the long-term for veterans

The participation fee depends on the sales price of the home. However, unlike the VA loan, the Texas Vet Program does not base your interest rate on your credit. The same low interest rate is offered for all veterans, as long as they can qualify. For disabled veterans, the interest rate is even lower at just 3.03%. 

If you have any other questions or would like more information, feel free to give either of us a call or send us an email. We look forward to hearing from you soon.