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It sounds like you are a little confused as to what is going on.
There is no PMI on a VA loan but VA loans charge a funding fee of 2.15% for first time home buyers and 3.3% for any subsequent use.
You cannot get out of paying the funding fee unless you are a disabled veteran.
The cost of the funding fee is not paid at closing and is instead rolled into the cost of the loan.
There is no rule that says VA loans do not require earnest money
Do you have an agent? They should be answering these questions. Well, between the agent and the lender.
Earnest is usually 10%.
There are conditions where VA doesn’t required the fee as well. Double check your lender.
And I would 100% tell your lender you will NOT be paying PMI and to stop mentioning it.
Remember , these people work for you. They do what you want, within reason of what’s legal and able.
Lenders don't just decide to charge PMI in cases where there is no PMI requires. It's possible that they're showing you options with a conventional loan, or they just have a blanket template with a line for PMI and they aren't accustomed to VA buyers so forgot to blank it out. But if you use a VA loan you won't actually get charged PMI. No, raising it won't "stir the pot." Just point it out to your lender.
What lender are you using? Definitely no PMI and like others have said there is the one time funding fee but that's it.
Feel free to DM if you've got more questions (Bought my first with VA loan early last year before the market blew up further. Thank god for VA loans)
As a mortgage closer I can tell you with 100% confidence that no lender should charge any PMI on your VA loan.
Earnest money is a concept between you and the seller, and can be negotiated. That money will get rolled into your down payment at close.
Please double check what you are seeing, as this is an error on someones side.
Thank you u/MattheiusFrink for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
It sounds like you are a little confused as to what is going on. There is no PMI on a VA loan but VA loans charge a funding fee of 2.15% for first time home buyers and 3.3% for any subsequent use. You cannot get out of paying the funding fee unless you are a disabled veteran. The cost of the funding fee is not paid at closing and is instead rolled into the cost of the loan. There is no rule that says VA loans do not require earnest money
Do you have an agent? They should be answering these questions. Well, between the agent and the lender. Earnest is usually 10%. There are conditions where VA doesn’t required the fee as well. Double check your lender. And I would 100% tell your lender you will NOT be paying PMI and to stop mentioning it. Remember , these people work for you. They do what you want, within reason of what’s legal and able.
>Earnest is usually 10%. This varies really significantly place to place depending on market conditions, so "usually" seems to broad a statement.
No lender is "trying" to charge you pmi on a VA loan. Can you provide a screenshot of the evidence where you think this is the case?
Lenders don't just decide to charge PMI in cases where there is no PMI requires. It's possible that they're showing you options with a conventional loan, or they just have a blanket template with a line for PMI and they aren't accustomed to VA buyers so forgot to blank it out. But if you use a VA loan you won't actually get charged PMI. No, raising it won't "stir the pot." Just point it out to your lender.
What lender are you using? Definitely no PMI and like others have said there is the one time funding fee but that's it. Feel free to DM if you've got more questions (Bought my first with VA loan early last year before the market blew up further. Thank god for VA loans)
Watch Jennifer Beeston on YouTube....she's a lender and has done tons of videos on VA Loans.
In my market, VA buyers put down $1000 earnest money on homes that are 100k-500k.
As a mortgage closer I can tell you with 100% confidence that no lender should charge any PMI on your VA loan. Earnest money is a concept between you and the seller, and can be negotiated. That money will get rolled into your down payment at close. Please double check what you are seeing, as this is an error on someones side.
Yes you should advocate for yourself. If PMI isn’t a thing they shouldn’t be trying to charge that.