The VA (Department

of Veterans Affairs) says that more than 29

million veterans and service personnel are

eligible for VA financing. Check with the VA on

your eligibility. Different requirements apply

depending on when and how long you have served.

Other than that,

vets must clear the same types of hurdles as most

borrowers in applying for a loan. Income must be

stable and sufficient to meet the mortgage

payments plus any other loans, as well as pay

living expenses. The lender will do a credit

check, too.

Why is it such a

deal? Again, the big ticket item for most home

buyers is the down payment, and with a VA loan

there is no down payment required in most cases.

VA loans also have caps that limit the closing

costs you'll have to pay.

In addition, you

won't have to purchase private mortgage

insurance, which lowers your mortgage costs. And

you can get a graduated payment plan with lower

initial monthly payments that gradually rise to a

fixed payment starting in the sixth year.

What does it cost?

Borrowers must pay a basic funding fee of 2

percent to the VA. (Certain veterans are exempt.)

The funding fee may be paid in cash or rolled

into the loan. A down payment of 5 percent or

more will reduce the fee to 1.5 percent and a 10

percent down payment will reduce it to 1.25

percent.

All eligible

Reserve/National Guard individuals pay a funding

fee of 2.75 percent.

You can refinance

an existing VA home to lower the existing

interest rate if you pay a 0.5 percent funding

fee.

Veterans who are

using their loan entitlement for a second or

subsequent time, who do not make a down payment

of at least 5 percent, are charged a funding fee

of 3 percent.

For information on

any aspect of buying or selling a home, go to

https://www.ahahome.com, the web site for American

Homeowners Association.