Is it best to *always* go with a VA loan since I earned that benefit or still look at other loan types.?
I am having a home built in the Dallas Texas area but I will probably not get it because my Florida home is not sold. I have the option to pick another lot and build another home. The loan process starts all over again but I do not lose my earnest money if I build again. I did not lock in my rate with the 1st home and I went with a conventional loan. The Loan officer said "why go VA if you are putting so much money down". (50K on a 127K house) . Now that I will be starting over with the loan process on another home ....I am concerned that I did not get the right advice about not going with a VA loan...I have 100% VA disability benefits so I think I get some fees waived.. I would be grateful for any professional opinions..
2006-09-19 05:24:16 · 7 answers · asked by lizr 2 in Business & Finance ➔ Renting & Real Estate
A VA Loan isn't always best, but it is usually best because of the low interest rates and no MI. Since you're putting over 20% down you won't have MI anyway, and because you're disabled you won't have to pay the VA funding fee either.
I suspect the loan officer doesn't want you to go VA because he either doesn't know how to originate a VA loan or he is too concerned about his commission.
If you'd like to talk to a loan officer who is also a vet (USMC) and is located in Dallas, call me!
Rick Lanicek
www.primelendingonline.com
2006-09-19 05:49:26 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The primary advantages to a VA loan are that you generally do not need a down payment and closing costs are tightly controlled. However, the interest rates do tend to be a bit higher to compensate for these concessions.
I would generally agree with your loan officer, though he could have (and should have) done a better job of explaining the whole thing to you.
The BEST way to proceed is to have your lender work up two proposals -- one conventional and one VA. It will be easy to choose the best deal when you have all of the numbers sitting there in front of you. Since you are putting down nearly 40%, you should be able to get a very good rate on a conventional loan, almost certainly better than what you'd get with a VA loan.
Seeing that your loan officer didn't take the time to explain all of this to you in detail, you may want to consider shopping for a more attentive lender who will take the time to explain it all to you clearly.
2006-09-19 06:25:04 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
My first question is "why are you putting so much money down?" My husband and I purchased our first home with his V A; even with 100% financing, the mortgage was affordable because of the sales price. I you can afford the payments w/o the downpayment, then I would keep the proceeds from your sale to make improvements or reinvest. You may want to talk to a CPA about any capital gain from the property you're selling. The only thing a veteran pays with a V A loan is the V A funding fee, the appraisal fee, prepaid interest and some title fees. Get the fee schedule from your loan officer. Generally V A loans are a better deal because of the low fees, interest rate and 100% financing. It would help to know more about why you're putting so much money down. I would compare the VA and conventional loans side by side, then make the decision. Hope this helped.
2006-09-19 05:35:26 · answer #3 · answered by Le_Roche 6 · 0⤊ 0⤋
No, it's not always best to go with a VA loan. You can often get better rates with other lending companies, and many sellers don't want to deal with the VA because of the hassle of inspection and correcting any discrepancies before the VA will back the loan, etc. In your case, since you're putting a huge chunk down, you'd probably be better off NOT doing a VA loan.
2006-09-19 05:33:26 · answer #4 · answered by sarge927 7 · 0⤊ 0⤋
I would shop around and speak to several loan officers regarding what options you can consider. Gather all their loan products and compare it with something like this:
Looking for the Best Mortgage
Compare all the costs involved in obtaining a mortgage
http://www.federalreserve.gov/pubs/mortgage/mortb_1.htm
To answer your question directly--It may not always be the best way to go even if you earned the benefit to use a VA loan. Definately compare the % and fees to make the right decision.
2006-09-19 05:57:00 · answer #5 · answered by gcl003 2 · 0⤊ 0⤋
Contrary to popular opinion the VA doesn't actually loan money, they just guarantee to a lender that you will repay. If you have great credit you may get a better rate without the VA, but as you say 'you earned it,' so I'd check out both options.
2006-09-19 05:41:55 · answer #6 · answered by Anonymous · 0⤊ 0⤋
no count if that's counted as earned earnings and taxes are paid, confident they are able to garnish your SS reward, except that's disabllity. VA reward may well be garnished to boot. If that's earned earnings, and in fact you pay taxes on each dime you earn, no count if interior the path of the government or no longer a creditor has the superb to circulate after the money that''s owed them. it is not appropriate what your age is. The creditor has the superb to pursue all monies owed to them. you're able to prepare for what's referred to as a trouble, the place the courtroom could allow you to barter a settlement with the creditor or a sensible fee plan that matches the two you and the creditor. The creditor could additionally place a lien on any assets or earnings savings/checking bills secure to recoup their monies.
2016-10-15 04:13:34 · answer #7 · answered by dopico 4 · 0⤊ 0⤋