VA loan - Posted by Stephen

Posted by Kiersten on July 19, 2001 at 11:10:12:

The only downfall with VA is the upfront funding fee–which can be added onto the loan. it’s actually 2% the first time you use your benefits and 3% any time after that. A bit more expensive than the FHA upfront PMI but there’s no MI monthly with veterans and that’s a BIG plus to a VA loan! Conventional 95% loans have a huge MI rate–it’s much cheaper long term to pay the funding fee and stick with VA. As far as how to make it work further to your advantage, definitely try to get the seller to pay your costs so you are out no money. Beyond that, you can’t really ask for much more–no money out of pocket, no MI and 100% financing is a pretty good deal! VA loans are for primary occupants only and you can only have one house under this program at a time so as far as your continued investing and how you would use this, there really isn’t a way to do that unless you are buying as OO but then renting it, which would be loan fraud if you are caught.

VA loan - Posted by Stephen

Posted by Stephen on July 19, 2001 at 01:05:45:

I am a veteran and I can qualify for a VA loan. I know that when I get my certificate and take it to a mortgage company I am a shoo-in to get a house. What I’d like to know is does anyone have any ideas on how I can maximize the use of the VA-backed loan so that I can do some real estate investing and better my situation for the future? I’d appreciate any help from you guys.

Re: VA loan - Posted by Paul

Posted by Paul on July 19, 2001 at 19:34:40:

I believe that you can use your VA to purchase not only a single family home but a duplex, tri-plex and even a four-plex as long as you intend to live in one of them. Find one of those type units that you wouldn’t mind living in. Now instead of buying just your home, you’ve purchased your home and investment properties that can help pay your mortage.

Re: VA loan - Posted by Stew(NE)

Posted by Stew(NE) on July 19, 2001 at 09:55:46:

My wife and I are both veterans and have used both our VA Loans twice. The big benefit is if you talk the seller in to paying 1 to 2K of your closing costs you can get in for no money. Also, a big plus is no PMI is required on VA Loans. If this is your first time, this can be a blessing. Also, the VA Process looks after you. Having said all that, once you have purchased one house, the VA adds a 3% fee to cover all those veterans that walk away from their payments. 3% of a 120000 loan is 3600 dollars. Ouch. It can be fiananced with everything else, but still. With rates as low as they are, I might look at a conventional loan a little harder. But for your first time out of the gate, use VA. Also, I beleive you can buy up to a fourplex and live in one of the units with a VA. Don’t quote me on that but go to the VA site or get the brocheres.

Good luck