buying a home with a VA loan

5 years ago

This is our first time using the VA to purchase a house. We don't have any money down towards the $379,000 sale price of the home, so its my understanding that we will have to pay 2.3% VA funding fee which works out to be $8717. But then do we also have to pay for closing costs on the house?

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porkchop_z5b_MI

5 years ago

last modified: 5 years ago

Ok, I'm just going to put it out there -- if you don't have *any* money for a down payment, you really really REALLY need to sit down and take a hard look at whether you can afford home ownership. It costs a lot more than just the monthly payment, and your post begs the question why you have nothing down - if you're barely making it now and have nothing saved, adding the costs of home ownership into the mix can break you financially. On top of that, you are not a competitive buyer in any way, shape, or form in a high-demand market with both a VA loan and absolutely $0 down. Obviously I don't know you or your financial circumstances -- my directness isn't meant to be hurtful but rather help you take a look at reality.

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Comments (6)

User
5 years ago
Yes. 3-5%
lyfia
5 years ago
https://www.veteransunited.com/education/homebuying/closing-costs/
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areyano_cs
5 years ago
We have a VA loan currently. If the veteran has a disability rating, the VA funding fee is waived. mxk3 makes some very good points that you should consider. Good luck!
elcieg
5 years ago
How is your credit rating? It is an integral component in your getting the loan.

If it is not good, put off your plan to buy and work on building your credit.
kinthenorthwest
5 years ago
last modified: 5 years ago
If you don't have enough for the down, then hopefully the amount you bid matches the VA appraisal. VA will normally only loan up to the appraisal amount regardless of how much you are approved for!

in a hot market, this is why sellers are sometimes leery of people coming in with VA loan, especially when there was a bidding war. Too often VA buyers can't handle what they call the loan gap. What happens is when it comes to closing, the seller then ends up with two choices, start over or go down in price to the amount VA will loan. When it is just a few thousand, buyers usually don't mind, but when it is tens of thousands they are not happy & usually will opt to start over especially if market is still hot.