VA Loans Archives - Mortgage Home Loans by Sean Young

VA Funding Fee

VA home loans require an upfront one-time payment called the VA funding fee. The fee is a percentage of the loan amount and is paid in cash at closing, or more commonly is applied to your loan balance reducing your out of pocket expenses.

Why Do I Have To Pay This Fee?

The VA Funding fee reduces the loan’s overall cost since there is no down payment required up to the max county loan limit and there is no monthly mortgage insurance.

The VA Funding Fee is non-refundable. If you are in the middle of getting your disability approved while you are getting your loan, you may in rare occasions receive a funding fee refund. The VA Funding Fee can be paid by the seller concession, but be aware it must be factored into the 4% maximum that is allowed for seller paid closing costs on VA loans.

VA Funding Fee Table

VA Funding Fee Table - Loan Officer Sean Young

2015 Colorado VA Loan Limits

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Have VA Home Loan questions? Call 303-521-7169 or Email syoung@firstcal.net

2015 VA Colorado Loan Limits

As of January 1st, 2015 VA loan limits will be the same as Conforming loan limits based on the median home values for a particular area per the Federal Housing Finance Agency (FHFA).

VA allows loans on one-unit to four-unit properties, but the one-unit max loan limit applies to all properties regardless if it is one to four-units.

For 2015 most of the loan limits in Colorado have stayed the same, but 12 counties have been reduced and only Boulder County increased from 2014.

In a county where the loan limit decreased, VA will honor the previous higher limit on a purchase as long as the sales contract was signed by all parties and the buyers loan application were all done prior to Jan 1st, 2015.

In the 2015 Colorado VA County Loan Limit chart below you will see all loan limits for every county in Colorado. Plus the loan limit differences from 2014 to 2015.

The max loan limit can be a bit deceiving because VA does not have an actual maximum loan amount. The max loan limit does represent the max VA loan you can receive with a zero down payment depending on your remaining VA entitlement.

Since VA does not have a max loan amount, you can get a loan above the max county loan limit. However, you have to put down a minimum down payment for 25% of the difference between the county limit and the purchase price.

Example 1:

Let’s say you’re purchasing a home for $450,000 in Weld County where the loan limit is $417,000.

With enough available entitlement VA will guarantee a loan up to 25% of the max county loan limit, enough to get a $417,000 loan at 100% financing.

The difference between $450,000 and $417,000 is $33,000.

The buyer would have to bring in 25% of the $33,000 for $8,250.

*Keep in mind if there is a VA funding fee attached to the loan, the buyer would have to bring in 25% of that funding fee as well since it is added to the mortgage balance.

If a Veteran has previously used entitlement that has not been restored, the maximum guaranty amount available to that Veteran must be reduced accordingly.

In the below 2015 VA Colorado Loan Limit chart you will see a list of all the high-cost areas and their max loan limits.