Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am having the same problem.Our credit is in the poor category. But, we qualify for VA. So far,we have been turned down and are working with a second lender who is also trying to push FHA. they are obviously gaining something. The first guy acted like he didn't know we qualified either. What a crock!
Thanks for your quick replies! This is my first time posting, and I really appreciate your advice.
So, do you think the loan officer just "forgot" that we had had a whole conversation about VA loans and had never even mentioned FHA loans? Would you stay with him or go elsewhere?
This is our first time to use a VA loan. We would like to go O-down. It is a little sooner than we had planned to purchase a home, but it seems like such a good time to buy, and we are soooo desperately cramped in our current place.
Thanks again.
FHA requires 3.5% down. You can accept the money from a friend or a relative as a gift if you don't have it.
You do need to have decent credit scores to get an FHA loan, I forget the number, and it's not that high, but you can't get it with a 300 or whatever the lowest score is, or with recent bankruptcies or foreclosures.
With FHA you pay insurance every month, that way if you default on your home the bank still gets their money, but it's not free money handed out, you still have to qualify and the better your credit the lower your interest rate. FHA is a federal program, but you still have to get a private loan. I don't know how the VA one works.
We are in KY (Louisville), but we are looking to buy across the river in Southern Indiana. When we first talked to him about VA about a month ago, he quoted us the rate of 6.375% for VA. I have been watching the VA rates online since then and I believe they have gone down. He hasn't quoted us any rates for FHA. We have a meeting with him on Tuesday.
That's a really high percent. I got quoted 3.625% with a bank and 4.125% with a mortgage lender. The APR are a little higher, but only 1 to 1.5% or so.
That's a really high percent. I got quoted 3.625% with a bank and 4.125% with a mortgage lender. The APR are a little higher, but only 1 to 1.5% or so.
That's a really high percent. I got quoted 3.625% with a bank and 4.125% with a mortgage lender. The APR are a little higher, but only 1 to 1.5% or so.
If your APR is even 1% higher than the rate, then you need to look elsewhere. The APR is what you're charged for on the loan. Banks love to shove fees into the APR to make mo money.
FHA loans as of June 2013 now require life time mortgage insurance. A VA loan has no monthly mortgage insurance. You pay a VA funding fee, compared to a minimum FHA down payment. See link
A VA loan could be a better choice even if the interest rate was slightly higher, because 100% of the payment is going to principle and interest (plus taxes and HO Ins).
A FHA loan even with a slightly lower interest rate, adding mortgage insurance could make the monthly payment higher. A portion of the payment is only beneficial to the lender.
In the future going into a FHA loan will cost you in lost equity, to refinance into a conventional loan with out MI/PMI.
.
Last edited by Modification Specialist; 05-12-2015 at 01:53 PM..
You should at least get another quote from another lender. You haven't signed for the loan, you can shop around. I had issues with my broker and changed brokers 3 weeks before closing, everything was fine.
FHA loans as of June 2014 now require life time mortgage insurance. A VA loan has no monthly mortgage insurance. You pay a VA funding fee, compared to a minimum FHA down payment. See link
A VA loan could be a better choice even if the interest rate was slightly higher, because 100% of the payment is going to principle and interest (plus taxes and HO Ins).
A FHA loan even with a slightly lower interest rate, adding mortgage insurance could make the monthly payment higher. A portion of the payment is only beneficial to the lender.
In the future going into a FHA loan will cost you in lost equity, to refinance into a conventional loan with out MI/PMI.
.
It is my understanding that if you put 10% down on an FHA loan that when you reach 20% of the home loan you can cancel it.
It is my understanding that if you put 10% down on an FHA loan that when you reach 20% of the home loan you can cancel it.
That was the old way of thinking, homeowners with an FHA mortgage pre-dating June 2013. Their FHA MIP will automatically cancel when 78% loan-to-value is reached and annual MIP has been paid for at least 60 months (five years). It you took out a FHA loan before these dates, you are grandfathered in. With the large amount of FHA foreclosures and how much money was lost with the mortgage melt down over the last several years. The new way of thinking from the FHA websitelink
On FHA loans with a closing date after December 31, 2000 and before June 3, 2013 and meet the eligibility requirements described in Mortgagee Letter 2000-46 (with Attachment).For mortgages with an FHA case number assignment date on or after June 3, 2013, the FHA insurance can be terminated by the servicer or holder if the mortgage is paid in full before the maturity date.
You can drop the mortgage insurance if you pay your mortgage in full before the maturity date..
.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
