Anyone use a VA home loan before?

[CE1371]

Looking to buy my first home and I was wanting to hear impressions of the VA home loan, process, qualifications, etc.

Yes, I know all about the qualifications regarding military service, but outside of that, it doesn't mention other qualifications like whether or not I need to be working full time or if they'll take my GI bill BAH into account (discharged from active duty last month). I'm looking at getting something cheap from one of the foreclosure auctions in Phoenix.


Any home owner advice for a young buck?

 

[Weaselthis]

Re: Anyone use a VA home loan before?

The main advantage of a VA home loan is that, IF the seller will cooperate and pay the closing costs that the VA administration will not allow the Vet to pay, they you can buy a home for zero down payment. There are some cost you can pay, and some you cannot. But, you still need income, credit, in order to qualify for the loan. You should contact a reputable loan officer in your area for advice. If you're working w/ a Realtor, they should be able to recommend one. My experience (both as a Realtor representing buyers, and a Vet who has used the VA loan to get my first home) is that IF you can qualify and go VA, then do it. I THINK you'll find the lenders who own foreclosure homes are LESS than enthusiastic about participating in a VA loan situation. Good luck and thank you for your service. Take care.

 

[1stIDvet]

Re: Anyone use a VA home loan before?

I was wondering the same thing, glad you posted this question.

 

[CE1371]

Re: Anyone use a VA home loan before?

Thank you for the advice, I sure appreciate it.

 

[Bruiser_Joe]

Re: Anyone use a VA home loan before?

yep i did to buy the house i live in now

 

[BMelton]

Re: Anyone use a VA home loan before?

VA offers 100% financing.....like mentioned above...its just getting the lien holder to cooperate...VA appraisers are sticklers for making sure the vets dont get fucked and their appraisals often come in lower than that of a civi appraiser. more of a "CYA" thing on their behalf if you ask me. There are lots of Mortgage brokers that are more than willing to work with you ... 1st Mariner bank being one of them...thats who Im using for my refi. Good luck

 

[USMC 0231]

Re: Anyone use a VA home loan before?

I used one in for the house i still live in. It was great! I didnt put a dime out and without this loan I would have to rent since I didnt have a lot in the bank at the time. All the bank wants is to make sure that the asking price is realistic. Its what all banks should have been doing all along. You earned it so I would jump on it.

 

[Yasherka]

Re: Anyone use a VA home loan before?

(Disclaimer: this information is somewhat dated, ensure you are up to speed on current requirements)

Get your certificate of eligibility as soon as possible, when dealing with the VA it can take a while. The process is straightforward, but <span style="font-weight: bold">start now</span>.

I went through USAA for my mortgage, they provided me with an agent who worked on my behalf (remember that other real estate agents are working for the seller). She was able to get a very good price on my home and kept me from making some foolish errors. Talk to a mortgage provider about what you can afford and stay the hell away from ARMs. Once you get your VA certificate you can get pre-approved for the loan. Again, I had a great experience with USAA and recommend them.

There are some great deals in the Phoenix area right now, a security guard from my wife's bank just bought a place in Apache Junction for $30k.

One last thought: Don't be in a rush and don't allow yourself to be pressured by the seller. For most people a home is the largest purchase they will ever make. Ensure it is the one you want within your budget. As an example, I looked at close to 110 homes on the MLS and visited about 40 before I found the one I ultimately bought.

And thanks for your service.

 

[maxpower220]

Re: Anyone use a VA home loan before?

A VA loan is a loan the has a guarantee funding (just like FHA). The qualification process for the loan is exactly the same as any other loan. The VA loan has different interest rates from conventional loans, usually a little higher but right now the VA is a little lower.
What the VA loan does for you: 1. You can buy a home with no down payment. 2. Since the loan is guaranteed, you will not need PMI (Private Mortgage Insurance). 3. You can roll your part of closing costs into the loan.

HOWEVER, the VA loan is NOT free unless you have a minimum disability from the VA at the time of your discharge (or later). The VA Funding Fee is 1.5% of your loan value. It can be rolled into your loan. Every VA loan after the first has a 3% funding fee. If you have a down payment, those fees can go down. VA also may have rules about the purchase of foreclosures or short sale properties ( I have not dealt with those).

Here is my take: You have to determine how long you will be in this home. This is the key to determining if a VA loan is better (cheaper) for you because 1.5% of a loan is a lot of money in that funding fee. The other aspect of this is, if you will only live in this house for 2-5 yrs, you may need another VA loan on the next home. Now that funding fee is 3%, and that is a kick in the junk because your next house will probably cost more.

You must compare the 1.5% funding fee to the cost of PMI insurance of a conventional loan. You will find that if you live in the home 5 years or less, the PMI will be cheaper. If you funding fee is higher, PMI will be cheaper up to about 7-8 years. This is where you need to do your homework.

My personal rant: Zero down home buying is one of the features that cause the housing collapse. If you don't have 10% or more to put down, you probably shouldn't be buying a home.

 

[oldgrayone]

Re: Anyone use a VA home loan before?

If you want to go after the foreclosure auctions you really need to have all of your ducks in a row so you can write a check at the close of the auction. That will be hard to do with a VA loan.

What you may want to try is getting in touch with the larger lenders and see what they have in foreclosure that they are sitting on and need to move. It is a win win for both sides since you get a house and a loan from the same bank at a reduced cost and they get rid of a bad loan and loan you the money on the new home.

Before jumping into a large investment like a home you really should have steady secure employment and a small nest egg put away. Owning a home has unexpected cost you will have to deal with. There will be no land loard to call when you hot water heater breaks on Sunday or a fuse box shorts and the lowest bid is $1500 bucks.

I would not jump into anything with a house if you are not ready. The way the economy is there will be good deals for out there for a while.

 

[Switchblade]

Re: Anyone use a VA home loan before?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: maxpower220</div><div class="ubbcode-body">HOWEVER, the VA loan is NOT free unless you have a minimum disability from the VA at the time of your discharge (or later). The VA Funding Fee is 1.5% of your loan value. It can be rolled into your loan. Every VA loan after the first has a 3% funding fee. </div></div>

I have a VA loan on my place that I bought while in service. Since then I have a 60% VA pension that dates back to 'last day of service'. Can this fee, since it was part of the loan, be refunded with proof of disability?


ON VA LOANS: IF you sell the house YOU bought on the VA loan, the VA loan FOLLOWS YOU, not the house IF you insure that you take the proper steps to release the VA Loan from the house upon transfer or before(Check with your professional on how this works). You can then use YOUR VA loan on the new house purchase. THIS IS IMPORTANT to those who may sell their first house at a later date to buy a larger or smaller house to replace it with.

 

[msrtex]

Re: Anyone use a VA home loan before?

I have used mine three times. As mentioned the seller needs to be willing also. Not all mortgage companies will deal with the loan either. I had to educate my loan officer the second time I used mine. She told me after the fact the VA had much stricter rules than conventional and it was more work on the loan officers part. I have also purchased two homes without the assistance of the VA. I can say I always felt safer or more secure dealing with the VA.

 

[ArcticLight]

Re: Anyone use a VA home loan before?

It has to be your primary residence for one year.

Otherwise great way to go.

Go for it!

I bought my house back in 2000, been here ever since..