VA Benefit | No Money Down | Military and Veterans

Did you know that most veterans and active duty personnel don’t realize that they can qualify to purchase a home with no money down? That’s right, let’s take a look at the VA Home Loan. Hi, I’m Fawn Bertram with Homes by Fawn and Hawaii Life.


Private Mortgage Insurance, also called PMI is a type of insurance you may be required to pay when taking out a home loan. “Private mortgage insurance protects the lender from the elevated risk presented by a borrower that made a small down payment,” says Greg McBride, CFA, Bankrate’s chief financial analyst. “Once the borrower has a sufficient equity cushion, the PMI will be removed.”

Good news for our military members though. They don’t have to PAY PMI. Another benefit to our service members is the debt to income ratio is lower, so they can qualify for more house.

VA Lending Limits

So what is the VA lending limit for Honolulu? The current VA lending limit is $726,525. Anything over $726,525 would be considered a VA Jumbo loan.

Let’s look at this example. A veteran purchases a home for $850,000 in a Honolulu with a $726,525 VA loan limit. He would be required to make a 25% down payment on the difference. In this case, a $30,868.75 down payment would be required.

This same formula works for any loan amount. If a veteran exceeds the VA loan limit by $100,000, he or she would make a 25% down payment on that amount. Veterans have access to very good jumbo loan rates and terms. Speak with your lender to find out what their current rates and terms are. If you would like a list of lenders, please let me know.

More Information

For more information on this, and to find out how you might qualify if you’re Active Duty or a Veteran, give me a call 808-439-1077 or email I look forward to hearing from you and assisting in your home search and purchase. Talk to you soon!

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