VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty protects the lender against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan, and the rate might be slightly lower than with other loans. 

Other benefits of a VA loan include:

• Negotiable interest rate
• Lower closing costs than with other loan types, and seller can pay them all 
• No private mortgage insurance requirement
• Right to prepay loan without penalties
• Mortgage can be taken over (or “assumed”) by a qualified buyer when a home is sold
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan
• Maximum 100% loan in Texas is $417,000
• Maximum can be exceeded (with some down payment) up to $729,750  

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.  Veterans with a VA connected disability of 10% or greater, the funding fee is waived.  For loans closed on or after November 23, 2011, the Funding Fees are as follows:

	Veteran	Reservist/National Guard
First Time Use/Subsequent Use
Down Pmt
less than 5%	2.15%/3.3%	2.4%/3.3%
5% - 9.99%	1.5%/1.5%	1.75%/1.75%
10% or more	1.25%/1.25%	1.5%/1.5%
Interest Rate Reduction	.5%	.5%
Veterans w/ VA connected disability	0	0

 

A VA loan can be used to buy a home, build a home that will be the veteran's primary residence, or even refinance previous VA loan that was the primary residence at one time. 

Veterans with partial eligibility may be eligible to use their remaining eligibility for another loan. 

We can request your Certificate of Eligibility for you.  Just call us at 210-842-4185 for assistance. 

We thank all Veterans for their service to our country!