When you have a state that looks like this – you can be sure we see many Veterans purchasing homes!
The Veteran’s Administration does not actually “make” mortgage loans – they guarantee those loans, similar to what FHA does. They charge a Funding Fee which is generally considered a form of mortgage insurance, intended to reduce the overall cost of the program to taxpayers. The funding fee fomula is currently 2.15% on no down payment loans for a first-time use. The funding fee for second time users, seeking a 100% loan is 3.3%. There are also lower funding fees for folks who are making a down payment (which is becoming more popular). There are those who are exempt from the funding fee.
*Veterans receiving VA compensation for service-connected disabilities.
*Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay.
*Surviving spouses of veterans who died in service or from service-connected disabilities (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using their own entitlement on the loan).
Please note that the VA has the final say on who is exempt.
The VA does have some pretty specific rules regarding co-signors – for information on VA co-signors click here: