VA loans anyone?????? (Realtor, percent, seller, borrow)

[renriq02]

that's excellent news! good luck!

[TimtheGuy]

Originally Posted by banker0679

If you're considering a VA loan, I would also look at the FHA, and MyCommunity mortgages.

VA has a HIGH funding fee, and is waived if you're disabled.
It should be around 2.2%, and this is just an EXTRA cost besides origination fees, underwriting, attorneys, title fees, title insurance, etc
VA appraisals are also the strictest compared to other mortgages.

I had a customer who was having her house built in a new subdivision.
The workers drove a dump truck on the front sidewalk (next to the street), and the sidewalk cracked. The VA appraiser came out, and the loan was declined until that sidewalk was fixed. They also have guidelines for a certain amount of outlets per room, railings for 2 steps!!!, etc.
Very strict on

If the house is brand new, I would ask them if they build conforming to VA guidelines.

Most of my military customers take the FHA loan instead.

hope this helps!

While it is great to consider all options...I don't see too many/any borrowers who are going $0 down switch from VA to FHA or My Community Mortgage (MCM).

The "HIGH" funding fee is still FAR less expensive than the mortgage insurance on FHA & MCM as long as you are going to be in the home for over 2 years. FHA charges 1.5% upfront AND .50% EVERY YEAR until the loan has been paid down to 78% of the original sales price. MCM mortgage insurance is .59% EVERY YEAR until the loan has been paid down to 78% of the original sales price.

VA mortgage insurance charged after 5 years: 2.2% (added to loan amount with no monthly charge)
FHA mortgage insurance charged after 5 years: 4.0% (1.5% added to loan amount AND .50% charged yearly added to your monthly payment)
MCM mortgage insurance charged after 5 years: 2.95% (.59% charged yearly and added to you monthly payment)

After 8 years:

VA-STILL 2.2%
FHA-5.5%
MCM-4.72%

The interest rate will be higher on the MCM as well unless you are combining it with a 1st time homebuyer bond program. The FHA requires a down payment of 2.25% and a total buyer contribution of 3% into the deal, so it is not even a $0 down program.

That sidewalk must have been heaved up (safety issue) for the appraiser to flag it. If you were buying a brand new home and the contractors busted something up wouldn't you want it repaired before you moved in????

and this is just an EXTRA cost besides origination fees, underwriting, attorneys, title fees, title insurance, etc

These fees will be charged on all the loan options, not just the VA.

Bottom line-99% of the time the VA will be your best $0 down option.

[renriq02]

Those factors are not as quite that simple
You have forgotten to include the tax deductibility per year for the FHA, MCM.

VA loans take much longer to do than any other mortgage loan.
Cracked sidewalks arent the only things that need to be done.

I do a lot of VA loans, but only because the borrower insist on giving back to the country he served.

Normally, the homeowner moves btwn 2-3 years when it's his first home.
We both know that anyone active in the armed forces is constantly being reassigned to different states.

[TimtheGuy]

Originally Posted by banker0679

Those factors are not as quite that simple
You have forgotten to include the tax deductibility per year for the FHA, MCM.

VA loans take much longer to do than any other mortgage loan.
Cracked sidewalks arent the only things that need to be done.

I do a lot of VA loans, but only because the borrower insist on giving back to the country he served.

Normally, the homeowner moves btwn 2-3 years when it's his first home.
We both know that anyone active in the armed forces is constantly being reassigned to different states.

Tax deductibilty is only for homes purchased in 2007 and may not continue. Even with tax deductibility, the FHA option is far more expensive. IT IS ALMOST AS MUCH UP FRONT AND CHARGES MONTHLY!! ??? IT ALSO REQUIRES A DOWN PAYMENT. ??? The only time the FHA would be a better option would be if the borrower did not credit qualify on the VA but did on the FHA.

Much longer to do?? What would you estimate for added time...1 week at most?? What makes a VA take longer than a FHA??? Getting a hold of the certificate of eligibilty??? I suppose having the appraiser assigned MIGHT add a bit of time, since you can't choose the guy with the fastest turn time.

Most 1st time homebuyers move in the first 2-3 years?? I believe the statistic is longer than that (4-5 years) and with this market(no appreciation)...they will be staying much longer. Many VA borrowers are not still active military, so they don't get bounce around.

Finally,

Cracked sidewalks arent the only things that need to be done

...THE SAME GOES FOR FHA.

[rettogo]

Originally Posted by TimtheGuy

That sidewalk must have been heaved up (safety issue) for the appraiser to flag it. If you were buying a brand new home and the contractors busted something up wouldn't you want it repaired before you moved in????

Now this is one thing about the VA loan I don't have a problem with. I've heard several comments about the VA inspectors being picky and anal about the house. That's a good thing IMO. This is the biggest investement we will ever make, I have no problems making sure it's a well deserved one.

Also, after looking at the other options, it seems that the VA loan will be the best for us. I know it will take longer than the other loans but that's why we are starting early. My husband will be seperating in January so we are not going to be moving around. Even though this will be a starter house, it will more than likey be our only house until our boys go to college. They are 1 & 3 mind you. LOL. So the long haul will benefit us more than the other loans. I still appreciate all the suggetions from everyone though. It's always good to know ALL your options.

[TimtheGuy]

FYI-interest rate pricing has improved today. If you were locking your VA rate in today you should be able to get in the ballpark of:

6.375% + 1.0% orgination fee or
6.500% + .25% orgination fee (both 30 year fixed rate)

You will need to have an accepted offer before you can lock your rate in. Good luck on your house hunting and work the sellers hard for the best deal in this buyer's market!

[renriq02]

3% down is better than financing MORE than what your house is worth.

I do VA loans, but doesnt mean i agree with someone rolling everything into the loan.
I think it's a bad idea purchasing a home for 100,000...but my loan is 103,000.
At least a down payment will help me make the loan go down.

Like i said it has its pros/cons

Originally Posted by TimtheGuy

Tax deductibilty is only for homes purchased in 2007 and may not continue. Even with tax deductibility, the FHA option is far more expensive. IT IS ALMOST AS MUCH UP FRONT AND CHARGES MONTHLY!! ??? IT ALSO REQUIRES A DOWN PAYMENT. ??? The only time the FHA would be a better option would be if the borrower did not credit qualify on the VA but did on the FHA.

Much longer to do?? What would you estimate for added time...1 week at most?? What makes a VA take longer than a FHA??? Getting a hold of the certificate of eligibilty??? I suppose having the appraiser assigned MIGHT add a bit of time, since you can't choose the guy with the fastest turn time.

Most 1st time homebuyers move in the first 2-3 years?? I believe the statistic is longer than that (4-5 years) and with this market(no appreciation)...they will be staying much longer. Many VA borrowers are not still active military, so they don't get bounce around.

Finally, ...THE SAME GOES FOR FHA.

[TimtheGuy]

Originally Posted by banker0679

3% down is better than financing MORE than what your house is worth.

I do VA loans, but doesnt mean i agree with someone rolling everything into the loan.
I think it's a bad idea purchasing a home for 100,000...but my loan is 103,000.
At least a down payment will help me make the loan go down.

Like i said it has its pros/cons

For the 1st time homebuyer that actually has 3% in available funds, they would probably be better off keeping the 3% in reserves for a rainy day and going $0 down than putting 3% down and having nothing left for emegencies.

[verynicebecky]

Is the cost of moving a manufactured home out to a site covered under a VA home loan?

[TimtheGuy]

Not sure on that one. I will say that I try to avoid manufactured homes for any type of loan. I have run into too many problems and the secondary market just doesn't really want them. There are some loan products and lenders that will accept them, but many won't. I always advise people to go modular over mobile if possible.