I have a VA loan,how is it used and if i have good credit,should I use it?

5 Answers

  • W. E
    Lv 5
    1 decade ago
    Favorite Answer

    I woud say use it, since a VA loan does not have MI insurance on it, and the rates are AWSOME...

    VA Loan Information: Visit the home page of the VA. http://www.va.gov/

    The VA has increased their loan limits! The maximum loan amount in most cases is $417,000. The VA also offers some advantages over conventional loans:

    Other benefits of a VA Loan:

    1. No Down Payment required at closing

    2. Lower closing costs than conventional loans

    3. No prepayment penalty if you pay off your VA loan early

    4. No monthly Private Mortgage Insurance payment

    5. The lender is willing to negotiate your interest rate

    GOING TO THIS SITE, IS A MUST: http://www.homeloans.va.gov/veteran.htm


    What is a VA Guaranteed Loan?

    VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home which must be for their own personal occupancy. To get a loan, a veteran must apply to a lender. If the loan is approved, VA will guarantee a portion of it to the lender. This guaranty protects the lender against loss up to the amount guaranteed and allows a veteran to obtain favorable financing terms. There is no maximum VA loan but lenders will generally limit VA loans to $417,000 This is because lenders sell VA loans in the secondary market, which currently places a $417,000 limit on the loans. For loans up to this amount, it is usually possible for qualified veterans to obtain no down payment financing. A veteran's basic entitlement is $36,000 (or up to $104,250 for certain loans over $144,000). Lenders will generally loan up to 4 times a veteran's available entitlement without a down payment, provided the veteran is income and credit qualified and the property appraises for the asking price.

    Note: For properties in Hawaii, Guam, Alaska and the U.S. Virgin Islands loan limits can be up to $625,000

    VA Loans Offer the Following Important Features:

    Equal opportunity for all qualified veterans to obtain a VA loan.

    No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property).

    Buyer informed of reasonable value.

    Negotiable interest rate.

    Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation).

    Closing costs are comparable with other financing types (and may be lower).

    No mortgage insurance premiums.

    An assumable mortgage.

    Right to prepay without penalty.VA assistance to veteran borrowers in default due to temporary financial difficulty.

    VA Does Not do the Following:

    Guarantee that a home is free of defects. VA guarantees only the loan. It is the veteran's responsibility to assure that he/she is satisfied with the property being purchased. The VA appraisal is not intended to be an "inspection" of the property. A veteran should seek expert advice (a qualified residential inspection service), as necessary, BEFORE legally committing to a purchase agreement.

    If you have a home built, VA cannot compel the builder to correct construction defects although VA does have the authority to suspend a builder from further participation in the home loan program.

    VA cannot guarantee that a veteran is making a good investment.

    VA cannot provide a veteran with legal services.

    How Does a Veteran Obtain a VA Guaranteed Loan?

    Contract to purchase: Veteran selects home and discusses purchase with seller or selling agent and signs purchase contract conditioned on approval of a VA guaranteed loan.

    Loan application: Veteran selects lender, presents Certificate of Eligibility, and completes loan application. Lender will develop all credit information and request VA to assign a licensed appraiser to determine the reasonable value for the property. Veteran will pay for credit report and appraisal unless the seller agrees to pay. Either VA or the lender will issue a value for property for loan purposes based on the appraisal.

    Loan decision: If the established value is acceptable to all parties and the lender develops that a veteran is credit and income qualified, the loan may be approved. Most lenders are authorized to make this decision.

    Loan closing: Veteran (and spouse) attend the loan closing and sign the note, mortgage, and other related papers. The lender or closing attorney will explain the loan terms and requirements as well as where and how to make the monthly payments.

    How Can I Obtain More Information About VA Home Loans?

    Call VA at 1-800-827-1000 or contact a local lender or real estate professional. Pamphlets available from VA include:

    26-4 VA Guaranteed Loans for Veterans

    26-5 Pointers for the Veteran Homeowner

    26-6 To The Home buying Veteran

    Source(s): Wanda Ellis, Branch Manager, AmeriMortgage Financial Group Mortgage Broker for 7 years and love helping my clients get into a better financial position, Underwrite in the US (FHA, VA, Residential, Commercial, Investment, Conforming, Sub-prime)
  • 1 decade ago

    VA loans are wonderful. If you have good credit you still will benefit from a VA loan. You still get VA loans through regular lending sources, like a mortgage broker or local bank, but the benefit is the loan is insured by the VA. This means that a lender will give you a slightly better interest rate, and will not charge you mortgage insurance even if you borrow 100% of the value of your home.

    The only problems with a VA loan is they are slightly harder to get approved, not meaning you would not qualify, just that it will take a few weeks longer to get approved, and that often you will be required to pay a VA funding fee. Depending on your service sometimes this funding fee is waived. I know that most disabled veterans do not have a funding fee and that many who served several years also do not have one. To discover if you would have a funding fee you will have to contact the VA.

    My suggestion is that if you are planning to borrow over 80% of the value of your home, look into a VA loan. It will save you lots of money. If you plan to put 20% down, you may save money to avoid that VA funding fee.

    Source(s): I am a mortgage broker at HomeQuest Mortgage in Clearfield, Utah
  • Anonymous
    4 years ago

    VA place of work work does not take almost as long to technique because it used to yet you're talking a pair of month's time. Watch the fees of activity to work out in the event that they are secure, increasing or falling: working example if we'd be in a time of increasing costs, you need to fasten in a cost as quickly as a danger. VA loans oftentimes even disguise the final expenses. I won't advise on what to do with the 10k yet whilst this is a clean abode, there are various products to purchase. in the experience that your credit is powerful, a fifteen 365 days very own loan is a lot greater powerful than 20 or 30 years because of the large volume of activity saved over the existence of the internal maximum loan. no longer a solid concept to get a variable value. relies upon on how long you plan on possessing the abode/volume of fee possible arise with the money for for a manner long of a time the internal maximum loan fee is . in the experience that your husband is energetic accountability, the conventional turn around time is 5 years or much less, purely adequate time to get some escrow and resell once you pass directly to a distinctive base.

  • 1 decade ago

    I had it as well. With good credit, there is no need to use it now. Save it for later. There is a way to use it multiple times but that is another question altogether. Again, with your good credit, there is enough competition in the marketplace that you can get a great rate on your own.

    Source(s): www.totaldebtsolutionsllc.com
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  • 1 decade ago

    If you are talking about mortgages, you should consider using it. It is fully transferable.

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