Loan Information FAQ

Can I pay off a VA loan early?

Since VA loans do not have any prepayment penalties, you can pay off a VA home loan early without worrying about a prepayment fee.

How much can I borrow for a VA home loan?

The maximum guarantee amount set by the VA allows a Veteran or Servicemember to purchase a home with a loan up to $453,100 without requiring a down payment. Loans over this limit may require a down payment. Note that this loan limit figure adjusts based on location.  Refer to 2018 VA loan limits for more information.

Who is exempt from the VA funding fee?

Not everyone is required to pay the VA funding fee. According to the VA, you do not have to pay the fee if you are a:

  • Veteran receiving VA compensation for a service-related disability, OR
  • Veteran who would be entitled to receive compensation for a service-related disability if you did not receive retirement or active duty pay, OR
  • Surviving spouse of a Veteran who died in service or from a service-related disability.

What is the VA funding fee?

Generally, all Veterans using the VA Home Loan Guaranty benefit are required to pay the VA funding fee. This fee is a percentage of the total loan amount, and the exact percentage depends on the type of loan, the Veteran’s military category, if they are a first-time or subsequent loan user, and the amount of the down payment. The VA funding fee can be financed or paid in cash, but it must be paid at the time of loan closing.

How much is the VA funding fee?

Depending on service history and loan type, the VA funding fee is between 0.50 percent and 3.3 percent of the total loan amount. More information about the funding fee amount is available from the VA.

Do disabled Veterans have to pay the VA funding fee?

Disabled Veterans who are receiving compensation for a service-related disability are exempt from the VA funding fee. Additionally, Veterans who are eligible for disability compensation for a service related disability but are receiving retirement or active duty pay instead, are also exempt.

Is there a down payment requirement for VA loans?

Generally, there is no down payment requirement for VA Purchase loans as long as the consumer stays within the loan limit for his or her geographic area and the sales price do not exceed the appraised value of the property.

Take advantage of a Zero Down VA Home Loan today with NewDay.

Where can I find VA approved condos?

It may be possible for you to use your VA home loan benefit to apply for a VA loan to purchase a condo in a VA-approved project. Servicemembers are often happy to learn that they can purchase a condominium with a VA home loan. However, the condominium must meet qualifying guidelines set forth by the VA. 

The easiest way to determine if a prospective condo is approved by the VA is to visit the Department of Veterans Affairs condo report page. From there, you simply need to enter in the condo name or ID, the regional office with which the condo is registered, and location of the condominium.

Apply today for a NewDay Zero Down VA Home Loan if you are interested in buying a condo that is eligible for a VA loan.