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What Buyers Need to Know About VA Loans

Those who served their country, and their spouses, may be eligible for a U.S. Department of Veterans Affairs (VA) loan, which may save them thousands of dollars. These loans don’t require down payments, mortgage insurance, and often offer lower mortgage rates than other loans.

However, veterans and other military buyers still need some cash on hand to purchase a home.

“Even though it is a zero-money-down loan, you still will have your closing costs associated with the transaction,” said veteran Jerry Ashcraft, real estate salesperson at Berkshire Hathaway HomeServices Florida Realty in Mount Dora, FL. He served in the Marine Corps.

Buyers using VA loans will also need to pay for a funding fee, which they may be able to roll into their mortgage. They may also need to put money into an escrow account, which often covers things like taxes and insurance.