I'm a veteran and I've used my VA loan twice. It is an amazing purchasing tool for those who are eligible and qualified to use it. The excellent rates and lack of mortgage insurance separate it from any other financing vehicle for Buyers looking to purchase with little to no money down. I have had some difficulty with VA appraisals lately but the benefits far outweigh that one negative, in my humble opinion. Something even more exciting that isn't widely known: you can use your VA loan to purchase a multifamily property. Though this isn't an option or of much interest to everyone, having the ability to buy up to a 4 unit apartment building with no money down and live there while your tenants pay your mortgage is one heck of a powerful wealth building tool.
I just happen to be a veteran; and don't ask me why - but I've never used my VA Loan benefit. Don't get me wrong - I did try once - but the criteria was so stringent on the pre-inspection I just went for the traditional loan option.
However, the VA Loan allows you to purchase without a down (the loan can only be based on the lowest factor: appraisal or sale price), the VA Guarantees your loan (unlike FHA/HUD where they only insure the loan), and the VA will not allow a pre-payment penalty on your loan.
Contact your local Veteran's Affairs Office to insure you have all the details. Good luck to you!
Being a veteran provides an additional funding option. Although I am a Realtor, with the purchase of our first home we used the VA Loan. While we had the money to cover a monthly mortgage, property taxes and monthly recurring expenses we did not have the money to cover a down payment nor closing costs.
While the interest rate was not the best, it was okay and far better than renting. As our equity grew in the home over time there was a return on investment and allowed us to move into our second home six years later.
Make sure that you compare, for instance, each service usually has a Credit Union (i.e Navy Federal) and they may competitive programs. We shopped around, at the end of the day, we still went with the VA Loan and were confident that we made the best decision.
Make sure you check out the General Rules for Loan Eligibility http://www.homeloans.va.gov/elig2.htm and then take it from there.
VA mortgage loans are also lower in rate than their conventional counterparts and have no mortgage insurance!
Appraisals are not a problem either as the VA appraiser is going to give an honest and accurate value number based on the comps in the area.
All in all, Veterans Loans are great so please inquire with me as Wells and I do several hundred of these VA loans per month!
Thank you for your service and Happy Veterans Day!
The Bartic Group
(303) 880-8778 - Cell
#1 Keller Williams Real Estate Team in Colorado
Top 1% of Realtor © Teams in The World
Hope this helps :)
This is an old question but I just saw it in the archives. A veteran who is buying for the first time has a 1% Funding Fee that can be either picked up by the seller or included in the loan. We can often get the seller to pay the closing costs on the loan and the VA buyer can come in with no money down. Although there are some great programs out there for 1st time home buyers, in recent days the VA loan has been very competitive and in some cases the best option for the VA eligible buyer. I have lenders who can review the options and help you find the best scenario for each buyers own personal situation. Contact me for info on the best lenders to meet your needs. It is a great time to purchase a home in Denver.
Robert McGuire ASR
Your Castle Real Estate
Search Denver Homes
Direct - 303-669-1246
As already menitoned, VA loans are a awesome and well earned entitlement for service men and women. Along with 100% financing and great interest rates for even less than perfect credit , a VA loan also removes much of your othrewise standrad closing cost fees as well. Please see my blog concerning those fees that can and can not be charged in a VA transaction for further clairty and assistance.
The interest rates are very competitive if not better than conventional loans especially if your credit score is less than 700. While you do have to finance the VA funding fee into the loan amount (therefore it is not an out-of-pocket expense) the upside is you do not have to pay monthly mortgage insurance. Any other loan product where you put down at less than 20% requires monthly mortgage insurance...unless you buy out of the monthly mortgage insurance which can be very costly and requires a 680+ credit score.
Please let me know if I can assist your further in your home buying process. Good luck on this exciting journey.
Sr. Loan Officer
American Liberty Mortgage
Conventional loans are more competitive than VA loans as far as rate and fees go.
You can get in with nothing down but you can do that without the VA. And get a better rate.
Maximun loan amount may or may not apply in your area.
It used to be but it is really not a benefit anymore. That is really smoke and mirrors. The system needs a major overhaul. SO what if the government guarantees your loan... if you don't make the payments they still take it away from you.
I am a disabled Viet Nam Veteran and my VA loan is still available to me and I wouldn't even consider using it. No sense... it is not a good deal.
The GI bill ain't what it used to be.
Have you looked into loans available to veterans? This link might be a good start for you: http://www.homeloans.va.gov/
This should answer many of your questions about obtaining financing as a veteran.
Congratulations on your journey to purchasing your first home!