VA Mortgage Insurance

VA Mortgage Insurance

Are VA Loans required to carry Mortgage Insurance?

VA mortgages are not required to carry any mortgage insurance. They do carry a tax deductable Funding Fee that is paid directly to the VA at closing and can be financed in addition to your loan amount.

How much is the VA Funding Fee?

Please refer to the tables below to determine what your VA Funding Fee will be.

VA Funding Fee Tables:

Purchase and Construction Loans:

Type of Veteran	Down Payment	First Time Use	Subsequent Use until 9/30/2011
Regular Military	None 5% or More 10% or More	2.15% 1.50% 1.25%	3.3% 1.5% 1.25%
Reserves/National Guard	None 5% or More 10% or More	2.4% 1.75% 1.5%	3.3% 1.75% 1.5%

Cash-Out Refinancing Loans:

Type of Veteran	First Time Use	Subsequent Use until 9/30/2011
Regular Military	2.15%	3.3%
Reserves/National Guard	2.4%	3.3%

Other Types of Loans:

Loan Type		All Veterans
Interest Rate Reduction Refinancing Loans (Streamline)		.50%
Manufactured Home Loans		1.00%
Loan Assumptions		.50%

Why choose a VA Mortgage?

VA Mortgages require a Low 3% down payment.
Non-occupant, co-borrower are permitted for qualifying for an VA Mortgage.
VA Mortgage Loans use Expanded qualifying ratios.
There are no prepayment penalties for an VA Mortgage.
A VA Mortgage is fully assumable.
VA Mortgages have lower MI premiums.
A VA Home Loan is eligible for non-credit qualifying, streamline refinance.
A VA Mortgage is available all areas of the country, provided a market exists for the property and the home meets HUD's minimum property standards.
A VA Home Loan may be used to purchase or refinance a new or existing one to four family home in urban and rural areas, including manufactured homes on permanent foundations.
VA Mortgages are offered at terms of 15 or 30 years.

What types of VA Mortgages are available?

Fixed Rate Mortgage
Most VA mortgages are fixed-rate mortgages. In a fixed rate mortgage, your interest rate stays the same for the entire loan period. With a fixed rate VA Mortgage, you always know exactly how much your monthly payment will be. The Daily VA Mortgage Rate is usually better a conforming 30 year fixed rate with no points and daily VA rate with points is even better. Contact us for today's free VA mortgage rates.

Adjustable Rate Mortgage
With VA's adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. VA uses the 1-Year Constant Maturity Treasury Index (1 Yr CMT), the most widely used index, to calculate the changes in interest rates.

The maximum amount that the interest rate that an ARM VA Mortgage may increase or decrease in any one year is 1 or 2 percentage points, depending upon the type of ARM that is chosen. Over the life of the loan, the maximum interest rate change is 5 or 6 percentage points over the initial interest rate.