VA Home loans?

I got out of the Army in May with Honorable discharge and CIB.

I never been to the VA and I was wondering what do I need to do to take a VA Home loan out. I know the house I want to buy it is $125,000 but I want to take a $200,000 loan to repair the damage from a fire. What do I need to do?

Thank you.

4 Answers

  • 1 decade ago
    Favorite Answer

    I have a VA loan so I can tell you exactly what I did.

    First, you need to find a mortgage company or broker that will work with VA Loans. Second, you'll need to get approved and then make an offer on the house, as with any other loan. You don't need to go to the VA yourself. Your mortgage professional will take care of that.

    The VA doesn't write the loan, you have to go through a normal mortgage company. They just guarantee and regulate it. The make sure the loan is legitimate and there are no problems.

    I'm not sure about getting a VA mortgage for more than the value of the home, as you've mentioned in your question. You'll have to work that out with your mortgage company. My guess is you might get one loan to buy the home and then a second home equity loan to fix it and repair it. Any trusted mortgage professional will be able to help with that.

    The main benefit of a VA loan is that you don't have to put 20% down to avoid payiong private mortgage insurance.

    However, keep in mind with VA loans that you will be required to pay a 2% funding fee (unless you are waived by the VA - disability is a waiver and they may be some others). So if you get a $200,000 mortgage, you'll have a $4000 funding fee tacked on to it. If you can get it waived, good. If not, you may want to consider traditional mortgages with out going through the VA.

    If you have good credit, a down payment, and can qualify for a traditional mortgage, you might save money in the long run. Once again, you'll need to talk with a trusted mortgage professional to get the best deal possible.

    Good luck. I wish I had known then what I know now about VA loans. I just assumed it would get me the best deal and didn't even consider comparing to traditional loans.

    Source(s): Army veteran with a VA loan
  • Anonymous
    1 decade ago

    First off, the lender must approve VA loans, so..find a lender. The VA may not lend you money for a fix it upper though, the home has to pass inspection..period. If the fire has damaged the home bad enough to be sold "as is".. you need to find another house to call home. Keep looking though, don't settle for a diamond in the rough.. just get the damn diamond.

  • Anonymous
    1 decade ago

    Get a letter of eligibility take with your local lender see if they do VA home loans. and go from there or google VA the nearest on to you and they have a ton of stuff that will help you.

  • Anonymous
    1 decade ago

    Go to your local VA office and they will walk you through the whole process. The current VA home loan is up to 450,000. The whole process will take about a month.

    Source(s): Sgt USMC
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