Let’s look at recent changes impacting Veterans Administration loans. First, the VA ended the requirement for down payments for VA Jumbo loans, those above $548,250. Previously, the veteran was required to put down a certain percentage amount based on their guarantee available from the VA, if they were taking out a Jumbo loan.

This is no longer required, as long as the veteran has all of his or her eligibility restored and does not have any other VA loans active at the time.

So, whether a veteran is buying a home for $150,000 or one for over $1,000,000, he or she is not required to make a down payment, no matter the loan size, if they have all their eligibility intact.
Also, a veteran can use their eligibility subsequent times, as long as all previous loans have been paid off. With a VA loan, the veteran does not have a monthly mortgage insurance premium, no matter what the loan-to-value ratio is, but they do have a funding fee. That can vary depending on whether it is a first-time use at 1.4% or a subsequent use at 3.6%. If a veteran is receiving 10% or more in disability payments from the VA, that funding fee is waived.

The VA loan programs have many criteria, so if you’re a veteran and you have any questions about what options are available, Indigo Mortgage is a great resource to call. And, to all veterans, thank you for your service.

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