VA Home Loans Question!! - Posted by Tiger-NY

Posted by James Strange on March 09, 2003 at 21:47:38:

Sorry if I confused you. I have great credit so I was able to get a better deal else where.

VA Home Loans Question!! - Posted by Tiger-NY

Posted by Tiger-NY on March 09, 2003 at 16:24:53:

I understand that one of the main benefits for people who are eligible for this program is that the guaranty helps the lenders reduce the downpayment or exclude it altogether.
I would like to know if this is the only benefit or if there are other benefits.

Re: VA - residents vs. investors - Posted by Eric

Posted by Eric on March 10, 2003 at 10:48:42:

You didn’t mention in your post whether you are an investor or intend to live in the property.

The legal intent of the VA program is that the loans are for residents, not investors. When you sign on a VA loan you are required to sign a form saying you understand this, and that you will reside for at least a year in the property.

Also as I recall these loans are’t freely assumable anymore, and rules on who can assume them are getting tighter and tighter.

Re: VA Home Loans Question!! - Posted by Don Dion

Posted by Don Dion on March 09, 2003 at 21:14:05:

The VA loan is good for someone with a short job history and no reserves but good credit. You can use 100% of the cash you have on hand to close. Yes they will roll some things in but do you really want to walk out of closing with a loan for 103% of your purchase. There are conventional loans that are much better that will also allow you to use 40% or more of your income to qualify that dont have the funding fee. Some with imputed MI giving you a better write off on your taxes. The VA loan was great in the 40’s when it was invented but has not kept up with the times.

Re: VA Home Loans Question!! - Posted by James Strange

Posted by James Strange on March 09, 2003 at 19:22:46:

When I bought my home I went with a regular loan rather than go with a VA loan. The reason I did this was that I was able to obtain better rates and I did not have to pay the 2% funding fee.

But if was credit was OK then I may have gone with a VA loan.

Re: VA Home Loans Question!! - Posted by Brent-AR

Posted by Brent-AR on March 09, 2003 at 18:15:06:

Roll the VA funding fee and closing costs into the loan, getting up to 103% financing.

Higher debt/income ratio.

No PMI/MIP.

Judgements typically need not to be satisfied, unless they are federal liens.

Loans are assumable.

Re: VA Home Loans Question!! - Posted by David Krulac

Posted by David Krulac on March 09, 2003 at 17:54:46:

100% financing for the Vet

assamable loan for the buyer from the Vet seller

usually higher ratios. conventional loans might be 28/36, whereas VA will go to 40 or 41.

David Krulac
Central Pennsylvania

Re: VA Home Loans Question!! - Posted by Tiger-NY

Posted by Tiger-NY on March 09, 2003 at 19:52:36:

So if your credit is poor, you are better off getting a regular loan, but if you have better credit the program gives you better benefits.So your costs include funding fees as well as closing costs too??Is this right?