Home Buying in Houston>Question Details

Kenneth.mecom, Home Buyer in Houston, TX

What is the advantages and disadvantages of going with a VA loan?

Asked by Kenneth.mecom, Houston, TX Fri Jul 19, 2013

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I agree with all that has been said so far. Another concern would be the lack of immediate equity should you have to sell sooner than you might have planned. However, for most folks, the 100% feature outweighs that possible risk. The funding fee is waived with a VA connected disability also. A seller is allowed to pay all closing costs and prepaids, as long as those prepaids don't exceed 4% of the sales price. The closing costs are not included in that 4% limit.

Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas
0 votes Thank Flag Link Fri Jul 19, 2013
Hi,
VA advantages in addition to what Ramonica posted include zero down payment, no mortgage insurance, no prepayment penalty, seller can pay for closing costs, lower credit scores are okay.



Anna Maria Durr NMLS 266699
Codemark Financial
4500 Highway 6, Sugar Land, TX 77478
281-592-0667, anna@codemarkfinancial.com
0 votes Thank Flag Link Fri Jul 19, 2013
Kenneth,

The greatest advantage of a VA loan is that borrowers don't have to come up with a down payment. This can save you thousands depending on how much home you plan to buy. Other benefits concerning VA loans are 1) no PMI 2) closing costs and loan origination are less expensive 3) appraisal fees are typically lower 4) a VA loan can also be assumed. The biggest disadvantage is the funding fee that veterans have to pay which is typically 2%. Check out this website http://www.veteransunited.com/valoans/va-loan-pros-and-cons/. Also feel free to call me I am happy to tell you about Texas Veteran Land Board loans as well.
0 votes Thank Flag Link Fri Jul 19, 2013
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