VA Home Loan

[Scuba Steve33]

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.

Thanks for the info. Do you know what benefit (besides possibly getting a specific house if the VA will only cover the appraised cost) putting money down has?

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.

Did you experience your VA loan being turned down by any sellers?

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

Awesome thanks for the info. I hope I will be getting my disability soon as I'm sure they won't waive it if it's still in the process. Sounds like it was pretty painless for you.

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.

Is that the only benefit of doing a down payment? I'm in the south bay area and looking to buy in San Jose. I am with USAA I'll have to check out the movers program that sounds interesting.

[winnre]

Yes, the first house I got the seller raised the price so the closing costs were covered. The house still appraised for the higher amount. On my 2nd house the seller refused to accept a VA loan and I had to go conventional.

[NastyNate]

Thanks Nate I will definitely call to get the certificate.

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.

VA number to get cert: 800 827 1000 then 010 to skip all voice prompts and talk to a rep.

There difference between the two scenarios is that there is no guesswork with a new house. You can pretty much count on it meeting the VA inspection criteria. The price was more but, we got to pick the lot, the direction the house was facing, all the options like tile, countertops, carpets, layout options, etc.

The short sales were always good deals. We kept getting beat out in deals and it felt like we were settling on things like sacrificing living on a cul de sac because it had a nice yard or not getting a loft because it was on a cul de sac, etc. Buying new, we pretty much got everything that we wanted. We paid more but I think it was worth it. I never have to move or sell if I don't want to. I got what I wanted the first time around.

[Punisher]

The VA funding fee for first time use by prior active duty is 2.15%. If you put 5% to 10% down, the Funding Fee drops to 1.5%. Generally with VA loans a down payment isn't required, and putting more down doesn't offer much incentive, since the VA insurance takes all of the lender's risk. Whereas on a conventional loans, there are large changes in interest rate depending on your credit score and down payment.

To be exempt from the funding fee you must be receiving VA compensation, so that would imply a minimum 10% rating.

In my experience, VA appraisers aren't any worse than FHA appraisers, however the VA gets a bad rap and uneducated agents may advise their sellers to accept a 'cleaner' offer than yours. Talk to a local realtor to find out what your market is like. In OC and Riverside, with prices and rates so low, there is a lot of competition for the few homes for sale. It may not be so competitive in your area; the seller may be grateful for your offer.

[winnre]

I get VA comp and have my unused VA Home Loan form, hmmm.

[socaliron883]

my wife an I just used the VA loan to purchase a home and it was pretty smooth sailing. Only thing i can complain about is there timelines. they have i believe what is 10 working days to do the appraisal so if your trying to close fast like i was ( son on the way) then it can get you into a bind. I will say the key is to deff get a veteran real estate agent with Va expierence. My realtor was prior army and has done alot of va loans and he was by far the key to limiting any headaches, plus its good to have a fellow vet covering your six.

[Korl]

One big plus which I just did is that with a VA loan you can refinance without having an appraisal. I went from 5.95% to 3.625% and may payment dropped by 500/month. Not bad for being just slightly upside down.

Sent from my HTC Holiday using Tapatalk 2

[downdiver2]

Used it last year, couldn't be happier. Bought a bank owned, south orange county fixer house and didn't experience a hick up. Used usaa and closed in 30 days. Good luck!