If you’ve served, you’ve earned one of the best home loan benefits in the country. Here’s a plain-English look at how a VA loan works and how to use it to buy in Sioux Falls.
The big benefits
- $0 down payment. Eligible buyers can finance the full price of the home.
- No monthly mortgage insurance (PMI). That can save you a couple hundred dollars a month compared to a low-down-payment conventional loan.
- Competitive interest rates, backed by the Department of Veterans Affairs.
- Reusable. You can use your benefit more than once.
Who is eligible?
Most veterans, active-duty service members, and National Guard and Reserve members who meet service requirements are eligible, along with some surviving spouses. Your lender can pull your Certificate of Eligibility (COE) for you, usually in minutes.
The VA funding fee
Instead of monthly mortgage insurance, most VA loans have a one-time funding fee. For a first-time VA purchase with less than 5% down, it’s 2.15% of the loan, and it can be rolled into the loan so you don’t pay it in cash. Putting 5% or more down lowers it.
Many veterans pay no funding fee at all, including those who receive VA disability compensation. Ask your lender to check.
Things that surprise VA buyers
- The VA appraisal checks both the value and basic safety of the home. I’ll help you spot issues early so there are no surprises.
- Sellers can help with closing costs. We can ask the seller to cover some or all of them as part of your offer.
- VA offers compete well when they’re written right. I’ll make sure yours is clean and strong.
How to get started
- Step 1: Talk to a lender who does a lot of VA loans and get pre-approved.
- Step 2: Call or text me. I work with military families and veterans and know how to make the VA process smooth.
- Step 3: Start touring homes in Sioux Falls, Tea, Harrisburg or Brandon.
VA rules and fees can change. Your lender will confirm your eligibility and costs. Learn more at VA.gov.
