[substanger]

Originally Posted by Sledgehammer

One question about the VA loan, do you have to pay PMI on a VA loan if you don't have 20% to put down?

Is PMI mortgage insurance? If it is, that's one of the nice things about a VA loan. There is no PMI or down payment required, but there is what is called the VA funding fee. For first time VA users, the funding fee is I believe 1.5% of the loan amount. For a two time or more home buyer, (which is what I am), that funding fee goes up to 3%. The VA funding fee is waived though if you're a disabled veteran, which I am. Even though I'm in the reserves and can't collect both my reserve military pay and disability pay, I can still use my disability rating for benefits such as this, then when I retire, I will be able to collect the disability pay and my retirement pay from the military.

Having a VA disability is saving me $6800 on this loan since I've used a VA loan 3 times before.

Anyway, generally, all fees and closing costs required from the buyer are just financed into the loan with no down payment required. That may or may not be a good thing, but in this case, my wife and I plan on this being a long term home, (if not our last), so rolling those costs into the loan really isn't an issue.