First Time Home Buyer's Down Payment

VA Mortgages

VA mortgages are for the men and women who served in any branch of the United States military and their families. The Department of Veterans Affairs backs VA loans issued to current and former military members. VA loans are quite strict, and it can take significantly longer to secure a loan like this than a traditional loan. However, veteran’s benefit significantly from this loan and what it means for them. When someone applies for a VA loan, they are not required to make any down payment, and they don’t pay private mortgage insurance even if they finance one hundred percent of the home's value. There are strict stipulations regarding the application for a VA loan, including the fact most areas in the country have purchase limits. Unless a person is buying a home in a city with a high cost of living, the loan cannot exceed 453,100 dollars. There might not be a down payment requirement, but there is a funding fee. First time VA borrowers must pay 2.15 percent of the price of the home as a fee, and that fee gets more expensive each time a buyer uses a VA loan.

Continue reading to learn about how conventional loans work in this context.