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VA Loans – Key Components

In honor of Veteran’s day, we wanted to take the opportunity to address some key aspects of VA loans. VA loans are truly the best bargain in mortgage financing for qualified vets.

Maximum LTV is 100% for most eligible vets who have not used their VA financing benefits before. With a sufficiently large seller credit for closing costs, a vet can buy a house with no money out of pocket (a VA “No No” – No Down and No Closing Costs out of pocket).

No “As Is” purchases. Clear Termite and Pest Inspections are always required. This is unlike FHA, which now allows “As Is.”

No MI is required. But, an Up-Front Funding Fee is required. These up-front fees vary depending on a vet’s status. They can be added to the loan amount too.

There are no fees that the seller “must pay.” However, there are fees that the VA Buyer is not allowed to pay. Anybody can cover these “non-allowed” fees, including lenders, realtors and sellers. A small closing cost credit from the seller or lender will cover these “non-allowables.”

Please feel free to contact us for more information.

From all of us at JVM Lending, thank you to those who have served in our military. Happy Veteran’s Day!

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646