A local veteran was looking for a home loan on a newly constructed manufactured home project. He had up to 5 percent down. He also has acceptable income, debt ratios, and credit. The project total cost was $300,000, including land, the new home, and improvements. A 95 percent conventional manufactured home loan would require 5 percent down, or $15,000 plus closing costs (approximately $7,000). The mortgage insurance would be $373.50 a month.
By using VA, the veteran was able to keep his down payment for a rainy day, get 100 percent financing, and only had to pay closing costs of $7,000. This VA loan did not have mortgage insurance and because he has a VA disability, his loan funding fee was waived. This veteran and his family saved $15,000 out of pocket and has a payment that is over $350 a month less than a conventional payment.
With your service you earned the right to use this fantastic loan. The VA loan is available on all types of housing, for purchases or refinances.
Ask your lender or realtor to show you the VA Option.
Disclosure: This is a true story about a real veteran and his home purchase project. VA Borrowers must qualify with their income and credit. If this veteran did not have a disability, then he would have paid the VA funding fee that could be added to the loan. Ask your lender for a breakdown.