New England Properties

Frequently Asked Question: Will I have to pay PMI on a VA loan?

Frequently Asked Question: Will I have to pay PMI on a VA loan?

Q: I plan on putting 5% down on a house, and financing it with a VA mortgage. Will I have to pay private mortgage insurance (PMI) on my new VA loan?

A: No, you will not. VA loans do not have monthly mortgage insurance premiums.

However, VA loans do have a funding fee. Unless you are exempt, the funding fee will vary according to your service (regular military or reserves/national guard), whether you are purchasing or refinancing, and how much you are putting down. The funding fee can be as low as 0.5% of the mortgage amount, and as high as 3.3%. The VA funding fee can be rolled into the mortgage.

For more information about VA loans and the VA Funding Fee, go to http://www.warms.vba.va.gov/pam26_7.html.

 

Lew Corcoran
Licensed Real Estate Professional

Best Choice Real Estate Services
133 Turnpike St, South Easton, MA 02375
Phone Toll-Free: (800) 984-3341

Serving Easton MA and the Surrounding Area

 

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3 commentsLew Corcoran • February 14 2010 06:06AM