As I wrote in part 1 of this series, the Nation’s financial crisis caused several liberal sources of home financing to disappear. No one knows if they will return. Today’s complex loan guidelines make conventional loans more difficult to obtain, so government loans are becoming a more popular source of mortgage funds. In part 2 of this series, we’ll cover loans provided by the Veteran’s Administration (VA).
Here are the highlights of a VA mortgage loan:
- For veterans and service persons only
- No down payment required, but if made, 100% of the down payment may be a gift
- Maximum loan amount is $783,750
- No mortgage insurance is required
- Owner occupants only (no loans on second homes or investment properties)
- Minimum credit score is 620
- VA funding fee paid at closing and may be financed
- Cash reserves are not required
- Condos must be on the FHA or VA Approved Condo List
- There are no condo owner occupancy requirements
Please consult your Honolulu mortgage professional if you have questions. Contact Michael Zimmerman if you need a referral to a great mortgage advisor.
