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 VA-backed home loan limit refers to the amount VA will guarantee (the maximum amount VA will pay to your lender if you default on your loan). VA does not limit how much you can borrow to finance a home. If you apply and are eligible for a VA-backed home loan, you’ll receive a Certificate of Eligibility (COE). This is the document that tells lenders that you have VA home loan eligibility and entitlement. 

But your lender will still need to approve you for a loan. The lender will determine the size of loan you can afford based on your:

  • Credit history
  • Income
  • Assets (items of value such as savings, retirement, and investment accounts)

VA home loan limits are the same as the Federal Housing Finance Agency (FHFA) limits. These are called conforming loan limits and are published by FHFA.  (Check current loan limits)

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:

  • receiving VA compensation for a service-related disability, OR
  • 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 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 typically between 0.50 percent and 3.6 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 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 does not exceed the appraised value of the property.

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

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