Anonymous
Anonymous asked in Business & FinancePersonal Finance · 1 month ago

When would it not make sense to use VA loan?

I saved a good sum of money for a down payment. I also heard all kinds of stuff that the VA rates are not always better and of course there is the funding fee... If I can do 20% down (or very close), does it not make sense to go VA? Since PMI is not a question then if I go 20%... My realtor and lender keep trying to talk me out of VA. I put an offer on a home with VA, but might switch to conventional. I am being told, if  I want the house - go conventional! It's crazy but veteran loans get looked down upon... Why?!

Update:

So you saying I am going VA but with 20% down (up to) and the seller will not like that? How am I different from the conventional guy then? Also, I did offer the seller way above asking to lure them in :)

3 Answers

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  • 1 month ago

    When does it not make sense to do a VA loan?  When you have money for a downpayment.

    VA loans are government backed loans.  The "looked down upon" is for all government backed loans, not just VA loans = USDA loans are the worst, VA loans are the best, and FHA loans are in between.

  • Rick
    Lv 6
    1 month ago

    I just bought my second house using the VA, and I can refinance-it after like 6 months ...........   Use the VA and then apply your cash to paying down the house ....................

  • Anonymous
    1 month ago

    Your agent is correct that you'll likely have a less expensive loan if you go with conventional.

    VA loans have more stringent requirements, more red tape, more delays and some things they require be paid by the seller.  None of this is appealing to sellers.   They will prefer a buyer with conventional loan over VA if everything else is equal.

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