If you’re a veteran and want a mortgage, would you choose a VA loan? If so, why? If not, why?

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VA loans are one of the top benefits of military service, yet many veterans choose other mortgages. Just trying to get some feedback from the Answers community about why veterans like (or don’t like) VA loans.

  1. Reply
    Caveat Emptor
    January 22, 2011 at 9:32 pm

    The advantage is that you can, if you qualify, get 100% financing. There is more “red tape” and paperwork, however, than with a conventional loan. Shouldn’t a “home loan guru” know this?

  2. Reply
    January 22, 2011 at 9:42 pm

    They are not popular right now because of the seller contribution. Many sellers can not afford to contribute so it makes it really hard for the vet to find a home he both loves and will accept VA financing. 4% is just way too much in the present economy.

  3. Reply
    January 22, 2011 at 10:37 pm

    If you have a COE
    And you are qualified to buy a home
    Then yes, VA is the way to go
    No closing cost ($ 5000+)
    And you can finance 100% (+$ 6000 over for repairs)

    FHA and the other conventional mortgages require typically
    $ 5000+ in closing cost at the closing
    And unless you get an 80/20 loan at 8 to 12%
    You have to come up with 20% down

    I hope that answers your question

    Brian, VSO in Okla

  4. Reply
    Beverly S
    January 22, 2011 at 10:45 pm

    Benefit is 100% financing- pretty good rate. But if you can afford to go conventional (20% down) you get a slightly better rate & you don’t have to pay the VA funding fee (which is included in VA loan but it makes your mortgage loan higher). Both are very good loans & if down payment is an issue go VA & be happy with it. They are not nearly as hard as some people think. Good luck!

    By the way, there are closing costs on VA- unlike what someone else said… try to get seller to pay them. Seller can pay up to 3% of closing costs & prepaids.

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