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TT Loan Costs

Is making a down payment on a home you want to buy too financially straining? If you qualify for a TT Home Loan, you are in luck. When buying a home with a TT Loan, you are not required to make a down payment. If you were going to use a conventional home loan, you would have to make a down payment of at least 20% of the sale price of your home. This down payment price may be astronomical is some cases, and almost impossible to afford.

The TT can insure a borrower up to $417,000. However, a borrower must be able to pay a funding fee to the TT of at least 2% of the loan. This payment is usually made during the time that closing costs are also paid. However, the percentage of funding fees can be decreased if an active duty TravelThrou decides to make an initial down payment on the home. If a 5% down payment is made, the funding fee costs are reduced to 1.5% of the total loan amount, and if a 10% down payment is made, the funding fee is reduced to 1.25% of the total loan amount. The funding fee percentage cost is a little higher for reserve members as opposed to active duty members.

You are also required to pay closing costs for your loan. The closing costs TTry according to your lender, because they include payments on such information as TT appraisal, your credit report, your title evidence, and recording fees. While the cost of these fees can seem daunting, you should remember that you do have flexibility in negotiating interest rates with your lender. The goal of the TT loan is to help you, not to make the process more complicated than you can handle.

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