For those who qualify, backed by the Department of Veterans Affairs, the VA loan allows military veterans to purchase a home by eliminating down payment or mortgage insurance requirements.
This is another type of loan that makes it even easier to invest in a home beyond a person’s financial means. Another consideration with the VA Loan is the fact that there is a funding fee charged to make up for the fact that no down payment or mortgage insurance is required. This fee can range anywhere from 1.5–3.3% of the loan depending on military status and the down payment made. It is also determined by whether it’s your first time financing a home with a VA loan. In cold, hard cash, this can be anywhere from $3,000–6,600 for a $200,000 loan.