I'm trying to understand the VA home loan... what makes it so much better than a normal loan?
what are some pro's and con's?
I've looked breifly at the site but I'm just not grasping it...
2007-08-23 12:12:18 · 8 answers · asked by JazzyKat 2 in Business & Finance ➔ Renting & Real Estate
i'm eligible to use it
2007-08-23 12:18:34 · update #1
If you do not have a 20 percent downpayment on a conventional loan you will have to pay PMI it is mortgage insurance in addition to your morttgage. With a VA loan a lot of the costs are put on the seller and you dont have to have a big down payment. You are also exemt from the PMI. Its a great way to get a place with little or no money down. The Va will also send an inspector out to the home and place a fair market value on it. They help you to not get ripped off.
2007-08-23 12:14:39 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The first thing you need to do is contact the VA and get a certificate of eligibility. Once you receive, go to your bank or mortgage broker, or a realtor that helps with financing. Get pre-approved for a loan. They will tell you just what you can afford, and what they will approve.
Once thats done, go shopping. Find a home that you like thats within your approved budget. There is generally a small fee but its returned to you when the sale closes.
You will not be required to make a down payment and you will not be required to pay PMI. A portion of your loan will be guarenteed through the VA.
Once you find a house and negotiate a price, go back to your lender and give them the news. It is usually 30 days to approval and 45 days to close. There are some things you may have to pay for, but your costs will be minimal. You will be required to pay closing costs, so if you have around $3500 to $4000 in cash, you are in good shape.
Good luck!!
2007-08-23 12:23:54 · answer #2 · answered by David L 6 · 0⤊ 0⤋
A VA loan is not totally score driven and you dont have to put a down payment in most cases. the VA does not loan money they just insure the loan! the loan is put thru lenders that do va loans and you must pay the VA a 2% fee on top of the other fees you would normally have if your credit is not real bad there are better and cheaper options!
check around for your options here is one source I like!
2007-08-23 12:23:06 · answer #3 · answered by Anonymous · 1⤊ 1⤋
The biggest advantage is that one can be had with no down payment, the government guarantees the loan for the bank.
The biggest disadvantage is that in a poor housing market it's possible to have a loan for more than the house is worth. This would make it very hard to sell if you have a problem.
2007-08-23 12:21:16 · answer #4 · answered by CoachT 7 · 0⤊ 0⤋
Low down payment is usually the most enticing thing on a VA loan.
2007-08-23 12:19:59 · answer #5 · answered by wizibuff 4 · 0⤊ 0⤋
There are hundreds if not thousands of websites on the internet enumerating the ways to apply and receive home loan when you are plagued with bad credit issues. These sites help consumers with bad credit scores to increase the viability of their existing credit scores and set up loans regardless of their credit history.Companies that specialize in bad credit home loans; usually offer a wide range of options for consumers with bad creditBad credit hasn't stopped them from purchasing a home. There are several programs available for people with bad credit that helps to restore their credit status and to live debt free lives.
2007-08-23 14:46:26 · answer #6 · answered by God r 1 · 0⤊ 3⤋
Hi there!...Ok, I researched this for you...
It's kinda long, so you better check it out yourself...
click here: http://www.home-loan-made-ez.com
2007-08-24 06:16:14 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Are you a veteran? If not it won't help you because you are not eligible.
2007-08-23 12:18:23 · answer #8 · answered by Anonymous · 0⤊ 2⤋