What is a VA Loan?
Posted on Saturday, August 11th, 2007 at 9:48 am.A client writes:
I've been hearing about VA loans. Are those loans meant only for people who live in Virginia?
No! VA loans have nothing to do with Virginia, although many people make that mistake.
Here is a good definition of VA loans:
More appropriately termed "VA Insured Loan." A loan for which the Veteran's Administration insures the lender against losses the lender may incur due to your default. Available only to veterans possessing a Certificate of Eligibility
If you are a military veteran, VA loans can be a good option. Recently the maximum cap for VA loans increased to $417,000 (the conforming standard). While there is a 3% fee for these loans, the rates are very good and there is no private mortgage insurance.
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Common search terms are "HUD-1", "Easement", "Foreclosure", etc.
December 27th, 2007 at 10:09 am
Well, there are lots of military veterans that were stationed in Virginia.
December 27th, 2007 at 10:17 am
Daniel It would appear that VA loans are going to once again be an attractive loan program - now that “funny money” has gone away, Karen
December 27th, 2007 at 10:21 am
Toni - wouldn’t that be a be VA VA loan?
January 7th, 2008 at 1:22 pm
VA is a great 100% finance tool in any state. They allow the seller to pay all customary closing cost and up to 4% of the sales price for other things like paying discount points to lower the interest rate, or to pay off installment debt (cars, furniture) to help buyers qualify for the loan, or even bad debt (judgements, collections). VA also has no minimum credit score.
FHA is another great tool with no credit score requirement and 6% closing cost assistance allowed from the seller. Coupled with a down payment assistance program and it is also $0 down!
January 8th, 2008 at 11:53 am
VA is a great 100% finance tool in any state. They allow the seller to pay all customary closing cost and up to 4% of the sales price for other things like paying discount points to lower the interest rate, or to pay off installment debt (cars, furniture) to help buyers qualify for the loan, or even bad debt (judgements, collections). VA also has no minimum credit score.
FHA is another great tool with no credit score requirement and 6% closing cost assistance allowed from the seller. Coupled with a down payment assistance program and it is also $0 down!
January 30th, 2008 at 9:55 am
Can the 3.3% VA Funding Fee be paid with closing help assistance?
January 30th, 2008 at 9:56 am
Yes, Endea, it can. The Seller can contribute over and beyond the typical 3% toward closing costs. The Seller can also pay off the VA Loan users personal debt in order for them to qualify for the VA loan. You need to talk to your local lender on a case by case basis.
January 30th, 2008 at 9:59 am
The funding fee is usually financed but it can be paid at closing, and the seller can pay it if they are willing.