VA Loans Explained: Zero Down, No PMI, Complete Closing Costs Breakdown

VA loans are one of the biggest and best benefits available to active duty service members and veterans. But because so few people use them, myths and misconceptions surround how they work. In this comprehensive guide, we break down exactly what VA loans are, their major advantages, all the fees involved, and how the closing cost structure works for veterans.

Whether you're a first-time VA buyer or a veteran considering your next home, this video explains everything you need to know about VA loan closing costs and why they're one of the most powerful mortgage options available.

🏠 IN THIS VIDEO:
What VA loans are and who qualifies
The 4 major advantages (zero down, no PMI, fee limits, seller concessions)
VA funding fee explained (2-3.5% range)
Disability veteran waiver opportunity ($10,000-$15,000 potential savings)
Warning: Rolling funding fee into loan can leave you underwater
VA appraisal fees and minimum property requirements
Title and settlement fees explained
Prepaid costs and escrow accounts
Allowed vs NOT allowed fees on VA loans
How seller concessions work (up to 4%)
Real-world out-of-pocket costs ($0-$3,000 typical)
Common VA loan myths debunked

💰 KEY NUMBERS YOU NEED TO KNOW:
Zero Down Payment Required (100% financing available)
Zero PMI (private mortgage insurance)
VA Funding Fee: 2% - 3.5% of loan balance
First-time VA buyers: Lower funding fee
Repeat VA buyers: Slightly higher funding fee
Disabled veterans: Funding fee may be WAIVED ($10,000-$15,000 savings)
VA Appraisal Fee: $500-$700
Seller Concessions: Up to 4% of purchase price
Typical Out-of-Pocket Cost: $0-$3,000 (usually just earnest money returned at closing)
Example: $400,000 home with $0 down, seller covers 4% = Zero out-of-pocket

🚨 CRITICAL WARNINGS:
Rolling funding fee into loan can leave you UPSIDE DOWN immediately
Example: $400K home + $0 down + $9,200 fee rolled in = $409,200 owed on $400K house
Only safe if you plan to keep home 5+ years
Check if you qualify for disability waiver BEFORE signing loan documents
Know what fees ARE and ARE NOT allowed (VA protects you from junk fees)

🎯 TIMESTAMPS:

(0:00) – VA Loans: The Biggest Military Benefit
(0:43) – The 4 Major Advantages of VA Loans
(1:26) – VA Funding Fee Explained (2-3.5%)
(1:54) – First-Time vs Repeat VA Buyers
(2:06) – Disability Veteran Waiver ($10-15K Opportunity)
(2:31) – Rolling Funding Fee Into Your Loan (The Trap)
(3:22) – VA Appraisal & Title Fees
(4:07) – Prepaid Items & Escrow Accounts
(4:51) – Allowed vs NOT Allowed Fees
(5:38) – Seller Concessions (Up to 4%)
(6:03) – Why VA Loans Are So Powerful
(6:44) – Drop a Comment

⚖️ IMPORTANT DISTINCTIONS:
VA Funding Fee ≠ Down Payment (fee goes to VA, not toward equity)
VA Appraisal ≠ Conventional Appraisal (VA is stricter, checking livability/safety)
VA Loan ≠ One-Time Use (lifetime benefit, can purchase multiple homes)
Seller Concessions ≠ Seller Paying Your Mortgage (one-time closing help only)

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⚖️ DISCLAIMER:
This video is for educational and informational purposes only and should not be construed as financial, legal, or mortgage advice. VA loan benefits, eligibility, fees, and funding fee percentages vary by:
Branch of service
Service dates and duty status (active duty, reserve, veteran)
Disability rating and VA service-connected disability status
Individual entitlement eligibility
Lender policies and offerings
State and local regulations

The examples, percentages, and benefits provided (2-3.5% funding fee, $500-700 appraisal fee, 4% seller concessions, $0-3K out-of-pocket) are typical ranges accurate as of the time of recording but may change.

*Disabled Veteran Waiver:* If you have a VA service-connected disability rating, you MAY be eligible for a funding fee waiver. Contact the VA directly or speak with a VA-specialist lender to confirm your specific eligibility. Do not assume you qualify without verification.

Before making any VA loan decisions, consult with:
VA-specialist mortgage lender
Veterans Affairs official resources (VA.gov)
Your military branch's financial advisor
A qualified mortgage professional

For YOUR specific VA loan benefits, eligibility, and closing costs. This video is specific to South Carolina; other states may have different programs or requirements.

📌 FOR DISABLED VETERANS:
If you have a service-connected disability rating, verify your funding fee waiver eligibility IMMEDIATELY. You could save $10,000-$15,000. Don't leave this benefit on the table.

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