VA “Secret” can save you THOUSANDS of $$$

Is there a better way to do a VA Loan? Yes! If you’re less than 10% VA Disabled. Let me explain.

As we all know, VA financing is amazing. It offers super low rates, along with easier credit and income qualifications. However, there is one area many people miss that can make it an even better choice for your Mortgage Loan.

How? By using a Down Payment. Now I know many people will proclaim, “But VA is $0 Down, everyone knows that!” That is true. VA Financing requires no money toward the purchase price of the home.

However, if you CHOOSE to use a down payment of 5% or 10%, you may just save yourself a bunch of cash.

Here’s the key, a change in the VA Funding Fee (VAFF):

For 1st time use the VAFF is 2.15% of the Loan Amount.

For any use after that, the amount is 3.3% of the Loan Amount.

So, for instance, if you buy a home for 500k, those numbers are $10,750 and $16,500, respectively.

Here’s the way it works - If you put a Down Payment of:

5%, your VAFF will only be 1.5%, regardless of 1st or subsequent use. The amount will be $7,125. Which is a savings of $3,625 (1st use), or $9,375 (Subsequent use).

10%, or more down, and your VAFF will only be 1.25%. In our example, that is a total of $5,625. This is a savings of $5,125 for your initial use and $10,875 for any additional uses of your VA Loan Eligibility.

Two major, additional benefits of using either of these Down Payment options are that you will have a Lower Loan Balance AND a Lower Monthly Payment. Both of which are great.

Again, as mentioned, if you’re 10%, or more, VA Disabled, this won’t apply to you.

For your specific situation - You can check out the payment differences here using our VA purchase mortgage calculator Smartest Loan.com.