VA loans anyone?????? (settlement, fee, interest rate, sales)

[The Veteran]

Originally Posted by TimtheGuy

Let's get a few of the facts straight here:

VA loans are the best $0 down loan out there as long as you are going to be in the home for at least 3-4 years. There is no monthly mortgage insurance as it is all charged up front as a funding fee. The funding fee is equal to about 2.2% and is added on top of the loan amount.

Example: purchase a $200k house and your loan amount will actually be $204,400. FYI-if you have any amount of VA disability (even 10%) the funding fee is waived.

The seller does not have to pay all the closing costs!. There are a few fees that the VA will not let us charge the borrower like the closing fee ($250-$500 depending on what state you are in) and fees like doc prep, committment fee, tax service fee...basically all the "junk fees" that lenders charge. The other normal fees like origination fee, title insurance, survey, mortgage registration tax, recording fees, etc. can all be charged to the VA borrower.

There are 2 ways to cover the fees we can't charge which only amount to about $500-$1,000. One would be to have the seller pay them and the other would be to charge the borrower .125% higher on their interest rate (eg. 6.625% instead of 6.5% today).

There is of coarse the option to have the the seller pay all the closing costs so you could get into the house for almost $0 out of pocket. If the seller is going to pay any of the costs the price of the home will almost always be that much higher in effect. It's not like you are getting "screwed" out of that money and neither is the seller.

VA appraisals are a little more thorough than a regular conventional loan. They look out for the borrower and do not want them to buy some piece of crap with a bad roof, or bad electrical, bad plumbing, etc. So, on older homes their may be some repairs required for loan approval. Anything built in the last 20-30 years will probably pass inspection.

VA loans require just ok credit...say 620+. One poster mentioned they will go higher on debt to income ratios....that is not true. If anything they are a little more restrictive.

I am approved to do VA loans in all 50 states if you would like to PM me for more info.

~Tim

Ok Timtheguy,

Most of your analysis of what is needed for a VA is correct, but the bottom part is incorrect. The VA does not require that an applicant has a 620 credit score for a VA loan. As a matter of fact, there is no minimum credit score. I'm not sure who you work for, or if you maybe a broker, but I work for an FDIC insured bank and we do VA loans in 47 states across the country. Also the VA debt to income ratio requirements are very flexible. I have gotten automated approvals on dti's up to 77 percent and closed them and they were insured by the VA. The VA has two requirements for you to meet. Either 43 % DTI or meet the residual income requirement for the total amount of family members. I have seen scores as low as 490 go VA before. It happens all the time. That is probably your own company's policy, but we sell millions of dollars each month in mortgage backed securities to Wall Street and Fannie/Freddie and the VA is one of the easiest to close. I have personally closed a VA purchase loan within 4 days of first speaking to the applicant. There is so much to getting an approval on VA than score. Compensating factors can allow you to get an approval.

[aomething]

Originally Posted by rettogo

Has anyone personally worked with anyone having a VA loan? We thought we found a good loan officer, but he wasn't certified to do VA loans yet. I know Countrywide will do them but I was wondering if anyone else know anything about them, used them, etc. Thanks in advance.

USAA - the place to go if you need a VA loan. They cater to the military. Check them out! www.usaa.com. We didn't use it on this house, but the next one we are going to buy will be using the VA Loan. Better rates and they are more flexible.

[renriq02]

most of the info you said is correct

but closing in 4 days?
please.
to order eligibility 24-48 hrs
gather docs 24-48hrs
VA appraisal 3-5 business days

AND I'm sure you have underwriters who have nothing to do....and they underwrite it in a couple of hours.

sounds like an ad to me.
VA easiest to close? yea ok.

Originally Posted by The Veteran

Ok Timtheguy,

Most of your analysis of what is needed for a VA is correct, but the bottom part is incorrect. The VA does not require that an applicant has a 620 credit score for a VA loan. As a matter of fact, there is no minimum credit score. I'm not sure who you work for, or if you maybe a broker, but I work for an FDIC insured bank and we do VA loans in 47 states across the country. Also the VA debt to income ratio requirements are very flexible. I have gotten automated approvals on dti's up to 77 percent and closed them and they were insured by the VA. The VA has two requirements for you to meet. Either 43 % DTI or meet the residual income requirement for the total amount of family members. I have seen scores as low as 490 go VA before. It happens all the time. That is probably your own company's policy, but we sell millions of dollars each month in mortgage backed securities to Wall Street and Fannie/Freddie and the VA is one of the easiest to close. I have personally closed a VA purchase loan within 4 days of first speaking to the applicant. There is so much to getting an approval on VA than score. Compensating factors can allow you to get an approval.

[renriq02]

oh nevermind i read your post again.

it's obvious you dont do VA loans.

VA is the LEAST flexible of almost EVERY LOAN PROGRAM OUT THERE.
any veteran will tell you this.

DTI at 77%? I only seen it go that high with conventional products..

I work with over 440 lenders....and probably even your own company.

Maybe I should start sending my VA loans to your bank.

[TimtheGuy]

Originally Posted by The Veteran

Ok Timtheguy,

Most of your analysis of what is needed for a VA is correct, but the bottom part is incorrect. The VA does not require that an applicant has a 620 credit score for a VA loan. As a matter of fact, there is no minimum credit score. I'm not sure who you work for, or if you maybe a broker, but I work for an FDIC insured bank and we do VA loans in 47 states across the country. Also the VA debt to income ratio requirements are very flexible. I have gotten automated approvals on dti's up to 77 percent and closed them and they were insured by the VA. The VA has two requirements for you to meet. Either 43 % DTI or meet the residual income requirement for the total amount of family members. I have seen scores as low as 490 go VA before. It happens all the time. That is probably your own company's policy, but we sell millions of dollars each month in mortgage backed securities to Wall Street and Fannie/Freddie and the VA is one of the easiest to close. I have personally closed a VA purchase loan within 4 days of first speaking to the applicant. There is so much to getting an approval on VA than score. Compensating factors can allow you to get an approval.

If you read a little more closely you will see that I said:

VA loans require just ok credit...say 620+.

I put a number on it to give people a GENERAL guidline. It does not say a 620 score is required. One of my other posts on this topic says that credit scores are NOT a requirement for FHA/VA loans. If a borrower is under 620 they may very well have issues with qualifying. Note I say "MAY HAVE" not "WILL".

No credit is better than bad credit.

I too work for a FDIC insured Bank.

490 scores ARE NOT approved "All the time". That is pure B.S. There may be some instances where a 490 got closed but it is definitely few and far between.

I think conventional, FHA and VA are all flexible on DTI and are too liberal IMO. Of the 3 I think VA is the most restrictive.

77% DTI approved, I don't buy it on VA. Conventional yes...VA no.

4 days from speaking to the applicant to closing on a VA...I am calling BS on that one too.

I know all about compentsating factors.

[walidm]

I've closed VA and it took 2 weeks to get the DD214 processed and there was Absolutely No Rushing VA....the lender said it was the fastest she's seen a Realtor get them to move and my client closed in just under one month, on time.

If you can do one in 4 days...you'll be a referral king in a few months....

[renriq02]

most ppl like that just over promise to get your business.

everyone and their grandmother knows that closing less than 2weeks is a miracle. 4days..?? yea ok.

I see you're in Charlotte....I can take your referrals.

Originally Posted by walidm

I've closed VA and it took 2 weeks to get the DD214 processed and there was Absolutely No Rushing VA....the lender said it was the fastest she's seen a Realtor get them to move and my client closed in just under one month, on time.

If you can do one in 4 days...you'll be a referral king in a few months....

[flu189]

A quick question concerning VA loans. I used it in '91 when I was active duty to buy a home and since then I have bought two other homes using other financing. Can I still use the VA later in the future or is there a cutoff timeline? If it matters, I did ten years active and am within two years of retiring from the reserves to lock in a pension to draw on when I hit age 60.

[renriq02]

you can use it again and again...but it gets very expensive each time you use it.

if you use it the first time it's 2.2% funding fee (right now)
2nd time is around 3.3% funding fee.

this is just the funding fee which doesnt include the other regular closing costs. the only way this is waived is if you're disabled.

look into the FHA program.....same rates...1.5% funding fee instead of the 3.3%

Originally Posted by flu189

A quick question concerning VA loans. I used it in '91 when I was active duty to buy a home and since then I have bought two other homes using other financing. Can I still use the VA later in the future or is there a cutoff timeline? If it matters, I did ten years active and am within two years of retiring from the reserves to lock in a pension to draw on when I hit age 60.

[AnimalLover]

Illinois has a program for Veterans than may be even better than a VA loan. Here, they can borrow 20% at 0%, 80% at a reduced rate, up to $2500 in closing cost allowance/down payment assistance and NO funding fee. Income limitations are fairly high, do not need to be a first time buyer. Last time I asked, bottom line was 30 year fixed rate at under 5%. I would LOVE to find a vet to help with this program!