for a better interest rate. If you put 20% down there will no mortgage insurance on this program. If you put the minimum 5% or 3% down you will have mortgage insurance but once to pay down your loan amount down by 20% you can petition your mortgage loan servicer to remove the mortgage insurance. The mortgage loan servicer will charge an appraisal fee and a servicing fee to remove the monthly mortgage insurance. Comparing to FHA there is no up-front mortgage insurance fee.
VA Program
The VA Program - This program is for Active Duty Military and Veterans and their married spouses only. The VA program provides 100% financing with no down payment required. There is no monthly mortgage insurance required. There is a VA funding fee that is financed and added to your loan amount. If you are using your VA benefits to purchase a home for the first time, your funding fee is calculated at 2.2% of your loan amount. On a $100,000 loan amount, your funding fee is $2,200 which give you a total loan amount of $102,200. If you have used your VA benefits before, you are considered a consecutive user. The VA funding fee goes up to 3.3% of your loan amount. On a $100,000 loan amount, your funding fee is $3,300 and your loan amount is $103,300. Depending on the percentage of your disability the VA funding fee can be waived. All VA loans are owner occupied only. You can finance another home you intend to occupy and keep your current VA loan by using the VA's bonus eligibility. You do not have to pay off your current loan before you purchase a new home. Check with your Mortgage Consultant for the bonus eligibility calculations to find out the purchase price limitations . This will let you know the maximum purchase price you can qualify for.
USDA Program
The USDA loan program- (United States Department of
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