MIL VA Loan questions

Discussion in 'On Topic' started by tunes, Feb 11, 2010.

  1. tunes

    tunes OT Supporter

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    So I'm looking at using the VA loan to buy a house at our new base and I have a couple questions. On the USAA website i fill out the application thing and it says for example:
    Settlement Costs $24,432.86
    Cash Due at Closing $18,337.38

    i thought these were 0% down loans....but according to this i have to pay 42k down???
     
  2. Jbrown

    Jbrown OT Supporter

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    god damn :eek4:

    In for answer
     
  3. Jyokker

    Jyokker The trouser snake is very aggressive. It will corn

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    I used VA and had to pay $2.4K in costs. It was rolled into the loan. You are doing something different or wrong if your fees are that high.

    USAA requires you to pay points too I think.

    Go with another bank. Someone who can offer you the lowest rate. USAA will probably sell your mortgage anyway.
     
  4. Eng

    Eng New Member

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    I think it means 24,432 is due but only 18,337 is paid by you. The rest is rolled into the loan.
     
  5. evan2

    evan2 Guest

    no....if you are using a VA loan for the first time its like 2.5 percent of the price of the house. That is the VA funding fee that is rolled into the loan. That is what is added so you pay no down payment.

    If seller doesnt pay closing you would still have to pay that as well.

    The VA keeps you away from a down payment or high priced PMI payment

    I took would stay away from USAA with mortgages, talk with local places in the area that might be able to offer you the best deal make them work for it.
     
  6. evan2

    evan2 Guest

    What Is VA Funding Fee?

    Posted by admin at 17th January, 2010
    VA funding fee





    The VA funding fee is required by law. The fee is currently 2.15% on no down payment loans for a first-time use, is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers. The funding fee for second time users who do not make a down payment is 3.3%. The idea of a higher fee for second time use is based on the fact that these veterans have already had a chance to use the benefit once, and also that prior users have had time to accumulate equity or save money towards a down payment.

    For purchase and construction loans, members of the regular military fall into the category of first time user or subsequent user.

    For first time users:

    * no down payment requires a 2.15% fee
    * up to 10% down payment requires a 1.5% fee
    * 10% or more requires a 1.25% fee.

    For subsequent users:

    * no down payment requires a 3.3% fee
    * up to 10% down payment requires a 1.50% fee
    * 10% or more requires a 1.25% fee.

    For the category of Reserves / National Guard, first time users with no down payment requires:

    * 2.4% fee
    * up to 10% down payment requires a 1.75% fee
    * 10% or more requires a 1.5% fee.

    For subsequent users, no down payment requires:

    * 3.3% fee
    * up to 10% down payment requires a 1.75% fee
    * 10% or more requires a 1.5% fee.
     
  7. DawnsKayBug

    DawnsKayBug New Member

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    Shop around and USAA wont insure your house at Dover due to "Hurricanes"
     
  8. Maffy29

    Maffy29 Active Member

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    Service connected disability = no funding fee

    You will pay closing costs on any home loan, conventional or VA. They are fees associated with the buying process. My closing costs on my VA loan, that I got through USAA, were around $7200. I negotiated $4600 of those fees to be paid by the seller at closing.
     
    Last edited: Feb 13, 2010
  9. tunes

    tunes OT Supporter

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    I just filled out the online application and i have no clue where those two things i posted are going because it said the loan was at 4.75% and 1,706 was due at closing.....which is much more reasonable.......i think we are going to go for the 4.75% @ 0.626 points with 1700 down rather than 4.5% @2 points with 6,700 down.....since we plan on selling in like 5 yrs
     
  10. DawnsKayBug

    DawnsKayBug New Member

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    My VA inspection at Dover was some guy driving by making sure the house was still there. they usually just check for rotting wood.
     
  11. tunes

    tunes OT Supporter

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    sent you a pm
     
  12. widds2v

    widds2v Active Member

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    Since it says up to 10% down you only pay 1.5% could you pay like $100 down and roll 1.5% into your loan instead of 2.15%?

    They probably thought of that already :(
     
  13. Maffy29

    Maffy29 Active Member

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    My VA inspector was a Major League pain in the ass. Her bullshit is what caused my house to close 38 days later than originally scheduled. We eventually had a representative from the VA involved to make sure things were done before I went TDY for work.
     

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