MIL Vets that have used the VA loan. Is it still beneficial to use it or is FHA better?

Discussion in 'On Topic' started by yardiewrx, Apr 22, 2009.

  1. yardiewrx

    yardiewrx OT Supporter

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    I am a vet that has 20% disablility and im going to be buying a house in the next few months, and I dont know if the VA home loan is better than the FHA loan and the $8,000 tax credit. Any realtors on here that can help me out?
     
  2. whitecouch

    whitecouch spendin' our golden years in OT Supporter

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    Not a Realtor, but I went with the FHA loan and can honestly say that you might get taken on the interest rate if you're not careful. Otherwise, it's easy enough to do and you still have that "first" VA loan.
     
  3. Jyokker

    Jyokker The trouser snake is very aggressive. It will corn

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    The main benefit to the VA loan is that you do not have to pay PMI on your house.
    PMI is an additional monthly insurance cost added to mortgages that are valued at 80% or more of the home value.

    If you have 20% down payment do not use either loan vehicle, just get a traditional 30 or 15 year loan.
     
  4. yardiewrx

    yardiewrx OT Supporter

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    I definitely dont have the 20%. So are you guys suggesting that I go FHA and skip the VA??
     
  5. whitecouch

    whitecouch spendin' our golden years in OT Supporter

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    If you have 5% down, I'd at least consider it.
     
  6. evan2

    evan2 Guest

    You do not pay the PMI but you still have to pay the VA funding fee which for first time home buyer is like 3.5 percent. Though you can just finance that into the cost of the house. I closed on my house for 6 dollars, as builder paid closing and my 3000 plus funding fee was just added to the price of the house.

    VA Rates are different so compare the two, a few months ago I was looking at re financing down to 5 percent as the rates were near that but my finance lady has not gotten back with me so assume she couldnt lock with no new costs to me.

    just weigh the options and talk to someone....
     
  7. kazimer

    kazimer New Member

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    I have a VA loan as I didnt have nor want to put down 20% downpayment for my house. I think overall they both work well. Just decide what is good for you.

    If you want a no money down, no PMI mortgage then go with VA. Beware that the VA also certifies the homes they give mortgages on, so if you are looking to buy a "fixer-upper" the VA inspector might not like it.
     
  8. Jyokker

    Jyokker The trouser snake is very aggressive. It will corn

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    Just do VA.
     
  9. yardiewrx

    yardiewrx OT Supporter

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    thanks for all the input fellas.
     
  10. kazimer

    kazimer New Member

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    dont leave us hanging
    what did you go with :squint:
     
  11. yardiewrx

    yardiewrx OT Supporter

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    ill probably go va. But I havent found what I want yet.
     
  12. ToeZ

    ToeZ Go Spurs Go!

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    I used my VA cause I was broke, then i did a refi when the rates dropped and use FHA... if you got the money FHA def has more benefits, but if you are a broke ass like i was, VA
     
  13. yardiewrx

    yardiewrx OT Supporter

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    how so??
     
  14. ToeZ

    ToeZ Go Spurs Go!

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    First time home buyer, 8k back... lower rates...
     
  15. ToeZ

    ToeZ Go Spurs Go!

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    First time home buyer, 8k back... lower rates...
     

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