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I am active duty, and have orders to PCS. I currently own a home and would like to rent it out and purchase another home at my new duty station.
Has anyone done this with a VA Loan? Will they let me do it? My current home was purchased with a loan that was not a VA Loan, so I will have two mortgages, but not two VA loans.
My credit is great- at 770, so I don't expect that to be an issue. I am an E-6 with ten years in the military, so job history should be OK.
Just wondered if people have had good or bad experiences doing this.
The only "bad" thing I saw about the VA loan when I looked into was the funding fee. It was so high, I might as well have just got a conventional loan with a down payment.
Hello everyone! I have a question about VA mortgage loans for active duty soldiers. I am going to join Air Force or Army soon. I read some websites about this loan, but I would like to ask real people about this program.
I want to buy house in Florida for 150K dollars. If I sign a contract when I will be eligible to apply for this loan? Is it easy to get it if you serve normally?
There are some requirements, you have to live in the home, the home has to pass a VA inspection, etc... They aren't really "VA mortgage loans" basically they are normal home loans. The VA guarantees the loan. So, you don't have the expense of PMI "primary mortagage insurance".
We bought four homes with VA guaranteed the loans, and re-financed maybe six times. We bought our first two homes while I was active duty.
You might start reading the VA page. Veterans Administration Home Loan Guaranty The official Veterans Administration site. There is a lot of info, it changes a lot and a lot of bad info...
Last edited by Poncho_NM; 06-24-2016 at 07:15 AM..
There is the thing that I do not completely understand how it works in real life.
So, as I understood, If I sign a contract, and serve 181 days (I didn't understand does these days include BCT and AIT?) I can get certificate of eligibility and apply for the loan? I have an excellent credit history, however, its built only by 1 credit card.
Could you explain a little bit more because you're a real person who encountered with that. When did you receive your first loan? I mean how long did you serve in order to obtain your first loan? Thank you!
There is the thing that I do not completely understand how it works in real life.
So, as I understood, If I sign a contract, and serve 181 days (I didn't understand does these days include BCT and AIT?) I can get certificate of eligibility and apply for the loan? I have an excellent credit history, however, its built only by 1 credit card.
Could you explain a little bit more because you're a real person who encountered with that. When did you receive your first loan? I mean how long did you serve in order to obtain your first loan? Thank you!
My first loan? 1981 or 1982... I think I had 13 years in. But that is not the issue.
According to the web site, you have to have 90 days of active duty before you are eligible.
You have to apply for the loan through a normal institution, the VA Guarantees the loan... There are a lot of little issues. For example, The VA loan rate, is the highest interest rate they will allow, but you can shop around. I believe you have to reasonably be able to prove you will live in the house for one year..
They aren't really "VA mortgage loans" basically they are normal home loans. The VA guarantees the loan. So, you don't have the expense of PMI "primary mortagage insurance
I was shocked at how many people don't understand the above - I met several people (sr enlisted with 15 years or more in) with terrible credit who weren't concerned because they thought they were "guarenteed" a home loan! They didn't get that you still have to QUALIFY for the loan.
Yes, you still have to qualify for the home loan, it isn't just handed out because you served in the military. The advanage of a VA backed loan is the interest rate and based on your credit you can get 100% funding, the disadvanage of a VA back loan is not all home will meet VA funding requirements. If you are in the market to buy a home now is the time to do it, the mortgage interest rate is the lowest you'll most likely to see and by all means get a fixed rate over the term of the contract.
One word of advice, buy within your means, if you qualify for a 200,000 dollar loan doesn't mean you have to buy a 200,000 dollar home.
1. I am not sure I would want to buy a house which would not pass an inspection for the VA. Some of their requirements are simple, like the house must have the house number on it, or more complex a certified Termite Inspection on a VA form must be done by a licensed company...
2. You can normally get a good rate because the VA guarantees the loan. Similiar to your rich Uncle cosigning the loan... Check out the down payment with an FHA sponsored loan. It is 20% or more. Our first home was supposed to be no closing costs, no other costs, etc... We had to pay $3.14. Having reached that far, I was not going to argue...
3. If you can't get a good deal from that bank, walk away... That is what we did on our third house.
4. Some military credit unions can do the financing...
I would be a bit leery in buying that early in a career. What if you get deployed, PCS'd etc? Selling a house you just bought can be tough... How long does it take to recoup the associated costs in buying? Etc.
You apply for a loan through a bank that services VA loans, but you have to qualify based on the bank's rules. You also have to pay a fee of about $3500 for the VA loan, but it can be financed. I'm not sure the time you have to wait, but I think others addressed that.
It's still a regular mortgage, but since the VA backs it, you don't pay PMI. Honestly, that's the only difference. Upfront Fee, No PMI, Have to live in the house, can't finance extra for remodeling, has to be inspected by a VA inspector, etc.
So, As I understood. Even If I serve 6 months I am not eligible for the loan? The army will be my first employer. Regular Mortgage lenders require 2 years of permanent work. The army's duty won't shorten this period?
I have 50% for the downpayment
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VA mortage loans for active duty soldiers
