If you're a Veteran or know someone who is, then you need to watch this video! San Diego Realtor Christopher Rossi is going to share some of the VA Loan secrets that most people don't know about. This information could save you tens of thousands of dollars over the life of your loan!

Are you an active duty service member or a veteran looking to use the VA home loan to purchase their first home and aren't aware of some of the pros and cons that it comes with? Hi, I'm Chris with Whissel Realty Group and today I would like to go over some of the advantages of using the VA loan, while also going over some of the disadvantages as well.

Now we'll start with the first pro, which most veterans already know, which is it is a zero-money-down loan so you are able to finance 100% of that purchase price. The second benefit of the VA loan is that it generally offers lower interest rates than your FHA loans and also your conventional loans as well. And the third pro to using this loan program is that it actually has no private mortgage insurance, which is going to save you hundreds of dollars monthly on that monthly payment.

Now on the flip-side of all these benefits there's also some disadvantages to it as well, with the number one being the VA funding fee. And what this fee is, is a one-time fee paid to the Department of Veterans Affairs that actually allows the program to keep up and running for future veterans to use. And currently, as of 2022, this fee is 2.3% of the purchase price for first-time buyers without a given disability rating of 10% or more. However, if you do have a disability rating of 10% or more you're actually able to waive this fee completely for life even if you do decide to use this for future home purchases.

And the second con with the VA home loan program is that it can only be used to purchase a primary residence where you intend to occupy that property for one year or more. However, there is a trick with this one as you are able to purchase a multi-family home, to rent out the other units to help you pay for your mortgage at the end of the day. And the third con with the VA home loan is actually going to be the VA appraisal as they do require the home to be safe and sanitary in order for you to occupy it.

So this wouldn't be a good option if you're looking to do a fixer-upper or anything to that nature. If you or anybody you know would like to learn a little bit more about the VA home loan program and how you can use it to purchase your first home, feel free to give me a text or a call at the number below.