Will a VA loan help you get a lower interest rate if you want to still put money down?

Answer 1

VA doesn't control rates, they only gurantee the note to the lender should the veteran default. That said, with zero down the VA loan is perhaps the best available choice. Those who say government loans aren't any good typically aren't familiar with them.

The VA process has been streamlined over the past couple of years, making them eaiser to process. And since lenders compete on rates with VA loans just as with any other mortgage offering, they're also competetive from one lender to another.

If however, you have downpayment money, go conventional. VA requires a Funding Fee, regardless of loan amount.

Answer 2

First, are you a veteran? If not, it isn't an option. VA loans were originally designed for the recently discharged serviceman/woman that had not had time to establish a credit history or save up for a down payment. The guidelines were lenient and said a lot for the confidence put in our veterans. Not only that, but the loans were assumable by non-veterans which made the house easier to sell down the line. Over the years, the cost of the VA loan program has risen and is no longer competitive with other loan products. If you have some cash for down payment and your credit is fair or better, VA loans are not the best product available. Some veterans want to use it regardless because they believe they earned it. They are right. They did earn it, but unfortunately it's not the right plan for everyone that is a veteran anymore. Compare closing costs to conventional loans and VA loses everytime. It's still for someone with no cash, no credit history, limited employment history, etc.

Answer 3

at first, enable me thank you on your provider to our united states of america. as bostonianinmo had suggested, the VA expenses are in many cases a sprint bigger than familiar mortgages yet because of using an a million/8 to a million/4. however the VA additionally will cost you the VA investment cost even although you're putting a extensive down fee. the VA FF for 10% or greater of a down fee is a million.25% of your loan volume (until in case you're 10% or greater provider linked disabled), so as that must be $a million,625.00 on your loan of 130k.

Answer 4

Government loans are a joke. Conventional loans are the best thing especially if you have a down payment and decent credit. Let me know if you want to get prequalified.

Answer 5

Not really it is just a government guaranteed mortgage. Sorry. But depending on the date it is locked the rates may be better than conforming