VA Home Loan

[Scuba Steve33]

Hey guys I'm hoping some of you have used this and can offer any insight into the pros and cons. I found some info online but nothing gets down to the cold hard facts and I'm a big fan of experience so if any of you have used it or looked into it I'd appreciate if you can offer your experience with it. I'm looking to buy (first time) and it's definitely overwhelming. Thanks guys.

[BajaJames83]

you need to find a real estate agent you like and can trust thats your first step. they are the ones who will be able to explain the ins and outs. its a pretty simple process.

[NastyNate]

First things first, contact the VA and get your certificate of eligibility. Then like BJ, said, hook up with a realtor. They will take care of the rest. Just know that the VHL doesn't require a down payment and the VA covers your closing costs.

PM me if you have any questions and congrats on taking the first step to becoming a homeowner.

[SoCal_Sapper]

Hey Steve, I bought my house with the Va home loan 4 years ago. So I might be some help. Like Nasty Nate said, getting pre approved is an important first step. It makes sure that no one wastes anyone else's time. Second, not all real estate will want to deal with going through the additional steps and paperwork of a va home loan, so make sure to mention that right at the beginning of the first conversation with the prospective real estate agent. I think the biggest boon of the va home loan is that you don't need to put any money down and more importantly with the va home loan you don't have to pay PMI which is an additional 20% fee on top of everything else for people who don't put a minimum 20% down payment. It would be ok if PMI actually did anything for the buyer, but it doesn't. You can pm me if you have any questions about my experience.

[Arondos]

Like Sapper said. NO PMI on 200k that takes a couple hundred a month off of your payment.

Also check here and see if you are eligible for a waiver. http://valoan.military.com/330/va-lo...a-funding-fee/

A good realtor and finance officer will take care of most of the paperwork for you. Your job will be to get the paperwork they need. DD-214, proof of disability if you have any etc.

Did my first one back in like 92 really don't remember much from it. just bought another house about a year and a half ago with my VA loan.

[C.W.M.V.]

Wife and I just bought our house with the VA loan a few months ago.
I would advise you to skip traditional sales/existing houses and just go buy a brand new house.
We kept getting out bid, and if we wanted to stay in the running on a lot of houses the VA wouldn't cover it because they will not pay more than the estimated value of the home. Lots of BS and a lot of people flat do not want your VA loan.
New house was too easy.
What do you want?
Ok here are our models, what options?
Ok will cost X dollars.
VA inspects and approves, move in within one month of deposite.

[Stanksbeamen]

Find a good realtor, I never had any problems in my experience. The house if buying used must be free of any major problems. The VA inspects and must be up to their standards. Good luck

[Punisher]

I am a mortgage loan officer, who lends VA loans. Depending on your current situation a VA loan may or may not be the right answer. Typically, VA has great rates with moderate credit scores, the loans are easier to qualify for and with no down payment required and no monthly mortgage insurance, they're a great loan for a lot of homebuyers.

VA does charge a funding fee, which they add to the loan amount (this is waived if you have a service connected disability). And VA does require the property to meet certain condition requirements; ie: no paint can be peeling, must have a stove, heat must be working, no exposed electrical wires, etc. What this means is that you can't purchase a fixer upper. And sometimes repairs to the property are required to be completed before the loan will close.

There are other loan options out there with 3.5% down, 5% down, 10% down and 20% down, with and without monthly mortgage insurance. However, you need to discuss your goals with a lender who can help you determine which route is best, based on your credit and financial picture.

Best Regards,

Steve

[sportbiker929]

call USAA and they will guide you. 8005318111

[NastyNate]

Wife and I just bought our house with the VA loan a few months ago.
I would advise you to skip traditional sales/existing houses and just go buy a brand new house.
We kept getting out bid, and if we wanted to stay in the running on a lot of houses the VA wouldn't cover it because they will not pay more than the estimated value of the home. Lots of BS and a lot of people flat do not want your VA loan.
New house was too easy.
What do you want?
Ok here are our models, what options?
Ok will cost X dollars.
VA inspects and approves, move in within one month of deposite.

That was my experience also. We were shopping short sales and foreclosures, looking for a deal. Every time we had a deal going an investor would come in and steal the deal by offering cash. We finally got fed up with that and just bought new. Builder love VA loans because it makes it easy for them.

[Scuba Steve33]

you need to find a real estate agent you like and can trust thats your first step. they are the ones who will be able to explain the ins and outs. its a pretty simple process.

I have a family friend who I'm waiting to return from vacation to discuss with. I think I lucked out on that aspect of this.

First things first, contact the VA and get your certificate of eligibility. Then like BJ, said, hook up with a realtor. They will take care of the rest. Just know that the VHL doesn't require a down payment and the VA covers your closing costs.

PM me if you have any questions and congrats on taking the first step to becoming a homeowner.

Thanks Nate I will definitely call to get the certificate.

Hey Steve, I bought my house with the Va home loan 4 years ago. So I might be some help. Like Nasty Nate said, getting pre approved is an important first step. It makes sure that no one wastes anyone else's time. Second, not all real estate will want to deal with going through the additional steps and paperwork of a va home loan, so make sure to mention that right at the beginning of the first conversation with the prospective real estate agent. I think the biggest boon of the va home loan is that you don't need to put any money down and more importantly with the va home loan you don't have to pay PMI which is an additional 20% fee on top of everything else for people who don't put a minimum 20% down payment. It would be ok if PMI actually did anything for the buyer, but it doesn't. You can pm me if you have any questions about my experience.

Thanks for the advice I'll be sure to mention that at first. I have a decent saved up for a down payment but not 60k or 20% of 300k so it definitely helps that I don't need a down payment. With the VA loan do you just straight not put any down or is it an option that you do not have to but can to benefit you?

Like Sapper said. NO PMI on 200k that takes a couple hundred a month off of your payment.

Also check here and see if you are eligible for a waiver. http://valoan.military.com/330/va-lo...a-funding-fee/

A good realtor and finance officer will take care of most of the paperwork for you. Your job will be to get the paperwork they need. DD-214, proof of disability if you have any etc.

Did my first one back in like 92 really don't remember much from it. just bought another house about a year and a half ago with my VA loan.

I'm still waiting on my damn disability to go through. I'm almost at the 12 month mark so the majority of the waiting is over but not all. As soon as I start collecting that will also help with my income they will look at so that's a plus.

Wife and I just bought our house with the VA loan a few months ago.
I would advise you to skip traditional sales/existing houses and just go buy a brand new house.
We kept getting out bid, and if we wanted to stay in the running on a lot of houses the VA wouldn't cover it because they will not pay more than the estimated value of the home. Lots of BS and a lot of people flat do not want your VA loan.
New house was too easy.
What do you want?
Ok here are our models, what options?
Ok will cost X dollars.
VA inspects and approves, move in within one month of deposite.

I'm confused when you say buy brand new. With no down payment or PMI how can I be looking at higher priced houses than if I had a regular loan and needed that 20% (I know it's not required but I'd rather have it than get screwed by PMI)? I'm single and have had a few jobs since getting out while going to school full time so I don't have steady income history. I was setting my max (based on regular loans) at 300k which limited me a lot, especially in the San Jose area.

I know this seems like basic stuff but it's all new to me. Thanks again.

Find a good realtor, I never had any problems in my experience. The house if buying used must be free of any major problems. The VA inspects and must be up to their standards. Good luck

Thanks I will keep that in mind.

I am a mortgage loan officer, who lends VA loans. Depending on your current situation a VA loan may or may not be the right answer. Typically, VA has great rates with moderate credit scores, the loans are easier to qualify for and with no down payment required and no monthly mortgage insurance, they're a great loan for a lot of homebuyers.

VA does charge a funding fee, which they add to the loan amount (this is waived if you have a service connected disability). And VA does require the property to meet certain condition requirements; ie: no paint can be peeling, must have a stove, heat must be working, no exposed electrical wires, etc. What this means is that you can't purchase a fixer upper. And sometimes repairs to the property are required to be completed before the loan will close.

There are other loan options out there with 3.5% down, 5% down, 10% down and 20% down, with and without monthly mortgage insurance. However, you need to discuss your goals with a lender who can help you determine which route is best, based on your credit and financial picture.

Best Regards,

Steve

Thanks Steve. I got your PM and sent you an e-mail.

I had a question about the VA funding fee and it being waived by a service connected disability. Is there a certain percentage you have to have to meet that or a specific type of claim? I'm pretty sure I'll meet that given what I claimed.

call USAA and they will guide you. 8005318111

Thanks for the number Biker.

That was my experience also. We were shopping short sales and foreclosures, looking for a deal. Every time we had a deal going an investor would come in and steal the deal by offering cash. We finally got fed up with that and just bought new. Builder love VA loans because it makes it easy for them.

What was the difference in getting approved for a new house versus a short sale or foreclosure? I'm assuming unless you were looking at relatively new short sales the price of a new house would have been quite more.

[SoCal_Sapper]

Thanks for the advice I'll be sure to mention that at first. I have a decent saved up for a down payment but not 60k or 20% of 300k so it definitely helps that I don't need a down payment. With the VA loan do you just straight not put any down or is it an option that you do not have to but can to benefit you?

I believe it's an option, you can either put down or not put down any money. We chose not to put down any money because we were planning (and did) on spending $60k on gutting and renovating the inside.

[winnre]

I got my first house on VA, they require an inspection that is strict and some sellers will not accept VA as a result. VA also says no closing costs so we offered 4 points more on the offer to get the house.

[VetteRacer]

I'm still waiting on my damn disability to go through. I'm almost at the 12 month mark so the majority of the waiting is over but not all. As soon as I start collecting that will also help with my income they will look at so that's a plus.

I had a question about the VA funding fee and it being waived by a service connected disability. Is there a certain percentage you have to have to meet that or a specific type of claim? I'm pretty sure I'll meet that given what I claimed.

A 3% funding fee on $300k is $9k. I wish I had done my VA claims earlier, would have saved a lot of money... If you can wait until the VA claim is done, I would.
I believe any disability compensation (so starting at 10%) qualifies for a waiver.

All I had to do was supply my DD214, they (realtor and loan people) did the rest. We had no issues getting the short sale that I now own...

Goodluck
Matt

[grt8plt]

Lots of good information already posted. We just bought a house in July with a VA loan. Our intent was to not put any money down. We kept getting outbid on houses because VA will only approve what the house appraises at. We decided to throw some cash down as well, and ended up with a house that we love. The timeline is usually a bit longer for VA loans, and they have a very strict inspection criteria but it all worked out in the end. I don't know where you are located but if you are near the Sacramento area I have a great loan agent that you can talk to. Also, if you are with USAA and use their movers program they will give you money back after closing.