Military Hotrod Club - VA Loan ?

Hey guys,

I am looking into purchasing a home soon. I will be a first time home buyer. I will be using my VA Loan. Just wondering if anybody can tell me how it works? I know being military we dont have to put any money down or anything. How good is the interest rate for the VA Loan?

Since i will be using my VA Loan, does it matter which bank i go to? Is there anything that i need to know? Thanks :usa:

VA doesn't loan you the money...they gurantee your loan so you don't have to put money down or get private mortgage insurance. Also helps cut down on some of the fees. I used mine to purchase a brand spanking new home.

Find a lender you like (rates/terms/fees) and then tell you would like to purchase using your VA loan entitlements. You'll have to fill out some qualifying paperwork so you find out what the max they will guarantee on your loan, and establish your eligibility. The lender usually will help you out. I believe the VA website does a decent job of explaining it all.

^^ that about sums it up

you can also use it to purchase rental property too

also for a smoother process you may want to find a local lender. Someone in state that understands the houseing/inspection laws.

Thanks guys. Well i bank with a credit union and just applied. Waiting to hear back from them.

Also i talked to the realtor and she wants to set me up with her loan officer. Just wondering am i better going with a credit union who i bank with or with the realtors?

your credit union....any "friends" your realtor uses only costs u money in the long run

your credit union....any "friends" your realtor uses only costs u money in the long run

Thanks Wyome. Im just still waiting to hear from my bank. I was told it takes about 24-48 hours to hear a response when applying online. I was just checking to see how much i can get pre approved for.

something else about a VA loan that has not been mentioned is the VA Funding Fee. For your first use of your VA benefit, it is 1-1.5% of the amount financed payable by YOU. It can be rolled into your loan or paid in full at closing. Each time you use your VA benefit, the % will go up.

Jack

Actually the VA Funding Fee is 2.15% on the first time use and 3.3% for each subsequent use, unless the Veteran has 10% or more service related disability, then it is waived.

The great thing about VA loans, especially in a "buyer's market" is that not only is it a $0 down loan in almost all cases, but also it allows the seller to pay any and all of the borrowers closing costs. We call this a double $0 down VA loan. I have even structured loans in the past to have the seller pay all closing costs, and pay off a judgment the Veteran had at closing. Very flexible loan program if structured correctly.

Good luck to you and Thanks for Serving.

Steve

I know I just bought my house using a VA backed loan the only thing out of my pocket was about 300 bucks to secure the house.. Good deal and an easy process!

used a VA loan on my house as well. No problems at all. The VA sends a rep out to appraise the house and do a small inspection but that is it. They are just protecting their investment though, so if you arent getting a dump, no worries

something else about a VA loan that has not been mentioned is the VA Funding Fee. For your first use of your VA benefit, it is 1-1.5% of the amount financed payable by YOU. It can be rolled into your loan or paid in full at closing. Each time you use your VA benefit, the % will go up.

Jack
yep. this was one reason i didnt go with a VA loan. i got a better deal ona traditional loan. better rate and less fees. I did have to put 5% down which was not a problem.

yep. this was one reason i didnt go with a VA loan. i got a better deal ona traditional loan. better rate and less fees. I did have to put 5% down which was not a problem.

VA loans really help people with no money to put down the most. If you get a 150k house, and have to pay a $3,225 VA funding fee that you can roll into the loan, it is a lot easier for someone to get a home than if they had to put 10% down or pay PMI.

We got a $250k loan, put down $800 towards some fees, and had the seller give us $5k upon closing to cover costs ect ect.

Very easy process.