Conventional vs VHDA or FHA mortgage if I can qualify for all of them?

Asked by Carma, Alexandria, VA Sat Jan 5, 2013

I have excellent credit and about a 5% downpayment saved up (and closing costs). I am a first time homebuyer looking for something in the 300-420K range in Fairfax county- is it better for me to find a conventional mortgage through normal sources or, since I just barely fit the income and other guidelines to qualify for a VHDA loan, should I try that- I can't find their rates on their website and I'm not sure if there is any advantage there concerning mortgage insurance due to my low downpayment. I do have a slight preference for a 15 year loan so I can save money in the long run- but VHDA doesn't offer that- also I can't be sure I'll always be able to afford that higher payment- These days who knows what can happen in 15 years time.

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Erik Weissko…, Agent, fairfax, VA
Sun Jan 6, 2013
Seems like you are getting closer to purchasing but have yet to get a Realtor in your corner. You will get lots of advice here and a lot of it is good. The real questions you need to be asking..or are not asking.

There are a host of other factors that go into choosing financing. Feel free to contact me to discuss. Would enjoy sitting down with you and showing you how my 25 years of experience can benefit you well beyond mortgages!

Kind Regards,

Erik J. Weisskopf,ABR,CDPE,CRS,GRI
Re/Max Distinctive Real Estate
0 votes
Robert Lepel…, Agent, Alexandria, VA
Sat Jan 5, 2013
Dear Carma:

With five percent down you qualify for either the VHDA conventional or, alternatively, FHA no money down financing. VHDA places a second trust on the property that has a penalty if you do not own the property for five or more years. Also you will be required to attend a class on how to be a homeowner. You must have been a Virginia tax paying resident for the last three years.
There is another program for first time homebuyers with good credit. No money down is required, but the interest rates are from 4-1/8 to 4-1/2 percent.
Usually loans are offer in 5 year increments up to 30 years. The shorter the loan, the less amortized interest one pays. Loan originators push the 30 year loan because they gives them the best yield when they sell one's mortgage on the secondary market. So with a 30 year loan at $200,000, in 22 years your balance will be $100.000.
If you are buying, then you should use a REALTOR who has the Accredited Buyers Representative (ABR) designation. These REALTORs have not only attended classes on how to represent purchasers, but also must have a proven history of representing purchasers.
If you have narrowed down the area in Fairfax where you wish to live, then I am available.
Best wishes in acquiring your first home - Bob Lepelletier - REALTOR, GRI, ABR & SFR Broker - Associate at Keller Williams Realty - Alexandria/Kingstowne Office 703-310-7880 or bob at bobtherealtor dot pro.
0 votes
Melissa Bark…, Agent, Washington, DC
Sat Jan 5, 2013

It is a good time to look to buy, rates are still so low and rents continue to rise around the area. You have a lot of really good questions. Though Realtors know generally about lending, it would be best if you ask a mortgage lender your questions, since these are things they need to stay up and and would best qualified to point in the right direction for your situation.

I can recommend some lenders for you to talk to if you need any names, please let me know. There is no fee and I am not tied to any of these lenders, past clients have used them and have been happy.

Please feel free to reach out to me if you have additional questions or need assistance.

Thank you
0 votes
Diane Miller, Agent, McLean, VA
Sat Jan 5, 2013
Hi Carma,

You have some really great questions here and although Realtors can offer you advice related to your questions, I think you would be better served by asking these questions to a lender.

The lending industry is changing on regular bases and to receive the best service, you need to be talking with someone whose job it is to stay current on all these changes.

I am more than happy to give you the name of some wonderful lenders who will take the time to explain your options and walk you through which on would best suited for you and why.

There is no obligation and it doesn’t cost you anything to speak to them. Of course once you find that perfect fit, it is nice to be loyal to only one and us them when it comes time for you to make that home purchase.

Once you have that out of the way and you know exactly what you are comfortable spending for your new home I would be more than happy to walk you step by step through that entire process.

If you would like that lender information just let me know, my contact information is listed below.

Take Care,

Diane Miller, Realtor®
Licensed in Virginia
Keller Williams Realty
6820 Elm Street Suite 100
McLean, VA 22101
O) 703-636-7320
C) 703-309-3555
Fax) 703-636-7301

Redefining Excellence in Customer Service and Business Integrity
0 votes
Rosalyne Cha…, Agent, Annapolis, MD
Sat Jan 5, 2013
Hello Carma,

I'm sorry. I omitted my contact information. My cell # is 301-325-2632. I look forward to hearing from you.
0 votes
Rosalyne Cha…, Agent, Annapolis, MD
Sat Jan 5, 2013
Hello, my name is Rosalyne Chatman and I'm a Realtor with Century 21 New Millennium. The answers you need to your questions would be best answered if we were speaking directly. There is so much information you should have. Please give me a call on my cell at your earliest convenience. It would be my pleasure to assist you.
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