The reverse mortgage enables them to purchase their new home without having to pay for the home with a 100% cash investment but still have no monthly mortgage payment. Reverse mortgage loans enable borrowers to utilize various financing strategies depending on their circumstances and needs.
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Loans through the NADL program cap the VA funding fee at 1.25% for mortgages. With regular VA loans, the funding fee can go up to 3.3%. The VA makes nadl loans directly, while regular VA loans come from private lenders. The VA determines the interest rate and closing costs, which could be lower than those of private lenders.
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