You should talk to a local mortgage broker. There are many different loan programs and only an experienced full time mortgage professional will know the ins and outs of those various programs.
To me it sounds like if you are being asked to pay PMI for a VA loan where you are paying at least 20% of purchase price as Down Payment, then the VA loan may not be the best mortgage for your situation. VA mortgage may have a slightly lower interest rate, but if you have to pay that upfront PMI and continuing monthly PMI, it may be better to go with a conventional loan.
Calll around to some local mortgage brokers and ask questions. Find one you feel comfortable with and who answers your questions to your satisfaction and peace of mind, and go from there. Look at all your options before making such an important decision.
Good luck with your new home purchase.
All the best,
Larry Lichtman, Realtor
You are getting conflicting advice when in reality there is no way to properly advise you without knowing more of your financial and credit details as well as your personal plans for both the short and long term.
I am available to help you at your convenience if you wish.
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Robert L. Hanson
Gladewater National Bank
First Time Homebuyer Specialist
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The previous post by helpyoubuyAmerica is exactly why Realtors should stick to Real Estate rather than pretending to know about mortgages. VA interest rates are approximately a half per cent lower than conventional. But they do carry that upfront fee The question as to whether it would be beneficial to go to a conventional loan would depend on a number of factors.
1. The amount of the VA guarantee fee that you have to pay
2. Your credit score.
3. The particulars of your situation that may cause me to analyze VA guidelines as opposed to convenitonal guidelines to see whether or not you qualify.
The funding fee for regular military with 10% down is 1.25%. It is very unlikely that you could get a better rate with a conventional loan over VA by paying 1.25% discount points in place of the funding fee.
Obviously I like to review a whole loan file before providing options to my clients.
Lets flip this around a little. If you were buying a home and used a Realtor that did not know what he or she was talking about, you probably would not return to that office as the broker clearly doesn't seem to care about its customers. The same would apply to a computer purchase, a financial planner an accountant. If management accepts this performance as acceptable then get the heck out of there. Clearly the client's bests interest is not the primary focus in their business model.
There are enough idiots in our industry. There are also lots of business models where the clients best interests are not represented. Offering them a second opportunity only allows them to stay in the industry longer.
I say dont even bother talking to the supervisor.
The response from your lender is so fundamentally incorrect I am compelled to believe there is something missing from your story, an incorrect interpretation of what was stated, or you and your lender are simply not talking about the same thing.
PMI is not a new thing and is well understood.
Return to the lending official and ask for a explanation. If the response is the same, vote with your feet.
The VA loan has an upfront fee known as loan guarantee fee. There is no PMI
This will depend on the type of military service you did and the amount of down payment ( 0 down, 5% or 10%).
You do not pay a guarantee fee if you are a
•Veteran receiving VA compensation for a service-connected disability, OR
•Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR
•Surviving spouse of a Veteran who died in service or from a service-connected disability.
Get a lender that knows VA loans. Your lender clearly does not and this will cause you problems down the road.
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010 & 2012
NMLS ID 143960
we had 3 clients last year with them, closed one in 26 days.