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

VA vs Conventional? ?

Any finance experts out there?! Ok, I don't know what to do here. We qualify for a VA loan but can also go conventional. With VA, we'd probably put 10% down to save the cash but I know the funding fee is quite steep. Although, I am being told I get a better rate, maybe .5% lower rate than conventional. I don't know if that's true or not. With conventional, we could go 20% depending on the price. Then no PMI but a worse rate potentially. Which one to pick? My lender is all talk and no action, doesn't answer questions such as these. I am going to switch I think. Oh, and sellers hate the VA loan. We're perceived as poor or something, I don't know. We put one offer with VA and lost. Someone beat us on price though, we were told at least. So who knows if it mattered if VA or no VA, better price is a better price.

Thanks in advance!  

Update:

A hunch, what do you mean by your statement? Better rate is not always a better price? I think I get it. As VA, we overpay, right? So we beat out the conventional mortgage.

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  • 1 month ago
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    Sellers hate VA loans because they are a pain in the booty.

    A conventional loan will always beat out an VA/FHA loan if they are in the same ballpark and there is no personal interest to help a specific group.

    Better rate is not always a better price.

    In response to the add'l question:

    I just mean that the "rate" is one aspect to look at with a loan, but not the only factor. 

    Application fee = I'd skip the lender if there is an application fee (for you being VA eligible that might be different)

    And loan processing fees.

    I've never taken the "cheapest" rate because it comes with bogus fee.  I'd rather have a slightly higher rate that I can pay a small additional payments to principal that make up any difference in overall cost.

    In response to Steven's answer:

    1. I am a female.  Not a "he" or a "they", a "she"

    2. Did you read my answer before you discredited me, because if you had you would see that it was very much like yours except you are missing why sellers don't like government insured loans.

    3.

    Option 1: Take advice from Steven F who has worked at a bank for 20 years and still makes less than $40,000 per year based on other answers.

    Option 2: Someone who makes more than sub-minimum wage and has owned multiple houses. 

  • 1 month ago

    A Hunch's user name is his source. It is usually about that reliable.

    Have someone give you actual quotes for both types on loan and compare them. ANY bank should be able to give you a quote both ways in less than 1/2 hour conditioned on the numbers you give them being verified.

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