VA is 100% financing. You have to be a veteran and they require the home to be in move-in condition.
FHA 203K is a rehab loan where you have to put down at least 3.5% and then can set up an escrow account for the repairs to be performed. The trick is if the house is selling for 100K and it needs 20K in repairs, the house has to appraise for 120K. Repairs have to be done within 6 months after closing.
To my knowledge, VA does not allow repair/improvement costs in their loans.
Their appraisers are rather stringent about property condition.
Here is the VA Loan Guaranty Home Page:
Here is the VA REO Page: (Foreclosures acquired by VA)
Here is the page from HUD for FHA 203K Loans:
This Page contains additional information:
An approved Lenders List for FHA 203K Loans (subject to change) -
be sure to check the 203K Box at the Bottom of the Page:
Best wishes to you,
2 thumbs up for Fred's answer! VA is very strict on the appraisal and condition of the home. FHA offers a 203 loan and you will need to put down 3.5% of the cost of the home as down payment. VA charges a 1% funding fee and the seller can contribute up to 6% of the closing costs. Most lenders will tell you if you have VA benefits, that is the way to go as far as your mortgage is concerned. There are some thing you want to ask your lender for, a Good Faith Estimate is imperative, you should "double app" which means apply for a mortgage with more than one lender - this will not affect your credit score. VA has less stringent loan qualification than FHA.
The challenge this year is that appraisers are required to be conservative in their work. This is huge when it comes to determining a price to make as an offer.
I specialize in working with VA buyers and I know what to look for when considering a home for purchase.
If I can of assistance, please contact me at
Good luck to you Beth!
Look at this blog it will help you to learn more about mortgages and VA deals.
I've got most of my answers there as well.