Comments on: The VA Home Loan Experience

By: Stanford F

Stanford F — Tue, 06 Oct 2009 09:11:13 +0000

A credit score shouldn't matter much unless you've really tanked your credit. all a VA home loan is, Is the a certificate showing, that for your valuable service to the nation, the Veterans Administration will guarantee your loan for up to the amount the financial institution will loan you, in the event you default on the loan. The VA will take the note and the bank won't lose money on it.

By: amee2you

amee2you — Mon, 05 Oct 2009 11:05:24 +0000

Its pretty straightforward.

The appraisal and inspection will be a little more consrrvative than normal. The VA want to make sure the property is immediately habitable and will check a dozen or so "health and safety" issues to make sure (mostly common sense).

The biggest issue for most is that you will have to cover about $1200-$1500 of their closing costs, so make sure you take that into consideration when you review their offer.

By: Mad Scientist...

Mad Scientist... — Mon, 05 Oct 2009 10:07:59 +0000

The limit will be the Freddie Mac conforming loan limit in California, which is currently $417,000.

No experience using one, just brokering them. If you are eligible, it's most likely going to be your best choice for a home loan, if you have limited or no down payment.

By: irunwithbulls

irunwithbulls — Mon, 05 Oct 2009 03:28:12 +0000

Yep, thats the way it is. Va inspectors are very tough! Good luck.

By: .

Sun, 04 Oct 2009 00:36:36 +0000

The 2% funding fee is NOT a hidden cost, it is a STANDARD cost that is charged to all first-time veterans financing a VA loan.

It is charged in lieu of the customary PMI (Private Mortgage Insurance), which is a very good deal for 100% financing.

VA loans have more stringent requirements for the LENDER than other types of loans. VA does not permit a lender to charge alot of the junk fees that are charged on other loans.

Loan ratios are also 42% for front AND back end ratios…this is what makes them different from most other loans as well, and easy to obtain.

The credit requirements for a VA loan are the same as FHA.

The biggest difference with a VA loan is that the lender doesn't have control of the appraisal….a lender has to order the appraisal through a VA portal online, and the appraisal is dispatched to a VA-approved appraiser.

You also need to be prepared to provide a Certificate of Eligibility as well as other special documents that are unique to VA loans.

The HUD-1 settlement statement also must go to the VA office for approval prior to closing…this makes last-minute changes to a mortgage loan impossible, so it's important to have everything the lender asks for a minimum of 7 days prior to closing.

My recommendation is to find a Loan Officer that SPECIALIZES in gov't loans. This is not the same as "we do them". Make sure they are thoroughly familiar with the process. If they are, it will go smoothly.

Good Luck.

By: fratdaddy1987

fratdaddy1987 — Sun, 04 Oct 2009 00:33:03 +0000

A OTH is the most severe form of administrative discharge. This type of discharge represents a serious departure from the conduct and performance expected of all military members. OTH discharges are typically given to service members convicted by a civilian court in which a sentence of confinement has been adjudged or in which the conduct leading to the conviction brings discredit upon the service. OTH discharges can be accepted in-lieu of court-martial proceedings at the service-member's request. Persons facing OTH are guaranteed, by the Uniform Code of Military Justice, the right to have their discharge heard by an administrative discharge board, which is similar to a court-martial but is not a public forum.

Recipients of OTH discharges are barred from reenlisting into any component of the Armed Forces (including the reserves), and are normally barred from joining the Army and Air National Guard, except under rare circumstances which require exception-to-policy waivers. As of September 2006, all 50 states had policies barring the reenlistment of UOTHC discharge recipients.

In addition, the majority of veterans' benefits are not available to individuals who receive an other than honorable conditions discharge, including the Montgomery GI Bill and (in most cases) VA healthcare benefits.

By: alan.wine

alan.wine — Sat, 03 Oct 2009 06:29:07 +0000

Yes

By: Sara L

Sara L — Sat, 03 Oct 2009 00:19:15 +0000

No you don't need a down payment with VA (them and USDA are the only 2 programs that still have 100% financing). You will be required to pay the funding fee though, but this can be added to the loan amount if you don't have the cash. VA is an excellent program, just make sure you work with someone who has a great deal of experience with VA loans, they can be quite complicated for an inexperienced loan officer.

By: chevelle c

chevelle c — Fri, 02 Oct 2009 23:21:20 +0000

I bought my house on a VA loan. The interest rate was very close to a normal 30 yr mortgage rate, but the money I had to come up with up front was significantly less. There are a few rules, however. You would need to look over the paperwork or talk to the bank to get them all. Here are the big ones: You must occupy the house yourself (no rental properties). You must own the house for a minimum of 2 years. Both of those make it impossible to buy a house with a VA loan for the purpose of "flipping" it. You can only have 1 VA loan active at any time. One big plus – if you sell your house to someone who is eligible to get a VA loan, they can take up your loan at the same interest rate you have!