VA Loan Program

The Department of Veterans Affairs (VA) was established on March 15, 1989, succeeding the Veterans Administration.  It is responsible for providing federal benefits to veterans and their dependents.  In 1944 the original GI Bill was established which enabled the Department of Veterans Affairs to guarantee home loans for Veterans.

The VA Loan Program is $0.00 down, 100% Financed, No MI/MIP,
and no Minimum Credit Score.   What this means to you as the home buyer is:
 
$0.00 Down - No cash required for down payment
     1) The only cash you may need is for your Earnest Money (which you provide to your realtor at the time your Purchase Contract is accepted.)
      2)  Appraisal Fee (Fixed fee of $300.00) collected at the time you have an accepted purchase contract.
 
These two items (earnest money + $300) will be refunded to you after closing because they are included in your loan.  So, if you had to pay $100 in Earnest Money and the fixed $300 for the appraisal, after you close on the house, you would receive a check for $400.00.

100% Financed - VA allows lenders to finance up to 100% of the appraised value of the home.
 
No MI/MIP - MI stands for Mortgage Insurance.  MIP stands for Mortgage Insurance Premium.  This is an Insurance Policy that is required by the government for any loan program that has a down payment of less than than 20% of the sale price.  If you were going with any other loan program you would be required to pay a 1.5% up front MIP and a monthly MI payment for a minimum of 5 years.  Because the VA Loan Program is guaranteed by the Department of Veterans Affairs there is NO MI/MIP.

No Minimum Credit Score - The Department of Veterans Affairs does not require a minimum credit score to qualify for the VA Loan Program.