any time.
THINGS TO CONSIDER WITH A V ER WITH A VA LOAN
One thing you do have to be aware of is a VA loan may not always be the cheapest option. VA loans do have upfront funding fees that can run from 2.3% to 3.6% of the purchase price of the home. The amount of the funding fee will depend on your loan amount, type of eligible service, any down payment amount, and other factors. Overall, the VA funding fee can end up costing you double the price of traditional closing costs. You can pay the funding fee upfront in cash, like you would with closing costs, or you can roll it into the loan, meaning you would actually be financing more than 100% of the purchase price of your home and you would be paying interest on that fee. Some veterans may qualify for a funding fee waiver. Veterans who received a Purple Heart or who receive VA disability compensation, and surviving spouses of veterans who died in service or of a service-connected disability and who have not remarried are all eligible for funding fee waivers. The VA also allows for origination fees of up to 1%, and some lenders may charge an additional 1% or more in discount points — points you pay to get a lower interest rate — on top of that. But both fees are optional and won’t be charged by every lender, so be sure to shop around for the lowest interest rate and best terms. Also keep in mind, if you live in a state with community property laws, having a spouse with less-than-perfect credit or who owes alimony, child support, or other financial obligations can make getting approved for a VA loan more challenging. Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin are all such states.
75
Powered by FlippingBook