24 Jul VA FINANCING WITH LOAN OFFICER MIKE COADY
VA FINANCING WITH LOAN OFFICER MIKE COADY
Many people ask me about the VA financing, so we decided to interview an expert…Mike Coady with Edge Home Finance.
When asked about the benefits of VA financing, Mike said:
“To be eligible for VA financing you must be a veteran or active military in good standing or have an honorable discharge to be eligible for VA mortgage benefits. The huge benefit of the VA loan program that it allows for 100% financing at extremely low government insured rates. It also allows for a higher debt to income ratio which enables the veteran to afford more home.”
What is a funding fee, who pays for it and will the buyer be credited for a portion when they sell?
“The funding fee is funded by usage, First time use has a funding fee of 2.15%, subsequent use is 3.30% and this is on 100% financing. If the veteran puts down 10%, First time use or subsequent use is then at 1.25% funding fee. This fee is added to the loan of the veteran. Any fully disabled veteran is exempt from the funding fee and is also exempt from property taxes.”
Can a buyer assume your VA loan?
“A veteran can assume a loan from another veteran long as he is in good standing with his VA eligibility entitlement.”
What is the maximum amount of loan allowable for VA?
“The 2019 V.A. loan amount for a single family home in Minnesota is $484,350.00.”