VA home loans. Help very confused?
My husband seperated for the military in 07. This is the first time we are buying a home. We found one we really wanted. And I called the bank to schdule a date to see if we are approved. We have great credit. And she said that that bank only does State VA loans and we should call the county and see which one we qualify for. I don't know the county number. Where can i find that? Also what is the difference between state and Federal VA loans. And does anyone know the interest percent on VA loans. Someone told me that regular loans are better and save you money in the long run. Is this true? Also I heard that with a VA loan you don't have to put any money down but you have to pay some sort of Fee. I really want this house and I don't know how to find all this info. And i want to make sure i am chosing the right type of loan. Any one please help. Any Info on va loans would be awesome. Thanks
- JEMLv 61 decade agoFavorite Answer
Q: How do I obtain a VA Home Loan?
A: Here are the steps:
Select a home and discuss the purchase with the seller or selling agent. Sign a purchase contract conditioned on approval of your VA home loan.
Select a lender, present them with your Certificate of Eligibility and complete a loan application.
The lender will develop all credit and income information. They will also request VA to assign a licensed appraiser to determine the reasonable value for the property. A Certificate of Reasonable Value will be issued. Note: You may be required to pay for the credit report and appraisal unless the seller agrees to pay.
The lender will let you know the decision on the loan. You should be approved if the established value and your credit and income are acceptable.
You (and spouse) attend the loan closing. The lender or closing attorney will explain the loan terms and requirements as well as where and how to make the monthly payments. Sign the note, mortgage, and other related papers.
The loan is sent to VA for guaranty. Your Certificate of Eligibility is annotated to reflect the use of entitlement and returned to you.
Q: What are the benefits of a VA home loan?
A: There are many benefits of a VA Home 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.
For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder.
VA assistance to veteran borrowers in default due to temporary financial difficulty.
I did the VA home loan and it was the easiest process ever, I used USAA.
- Cheryl GLv 71 decade ago
First, go to the VA website and click on the appropriate link. You should find, among other things, a list of VA approved lenders in your area. Then, contact a couple of them and see what is available.
VA interest rates change periodically, but this is also published on the website. There are programs which help you buy with no money down, which require sellers to help with closing costs and which offer lower interest rates and more affordable payments than standard conventional loans. You'll want to meet with someone in person to get all of your questions answered. Any good lender with VA approval can help you.
- 4 years ago
Foreclosures and short sales are probably not likely candidates for the VA loan unless in good enough shape to pass the VA inspection. Banks are not in the business of holding and selling real estate. In a foreclosure, the bank has already taken a financial hit and your ability to negotiate repairs is almost nil. In a short sale, similarly, the bank will not want to fix the property and the current owner has no incentive to offer anything since he is out of a house.