VA Home loan - Miata Turbo Forum -Boost cars, acquire cats.

Welcome to   Members

Insert BS here A place to discuss anything you want

LinkBack Thread Tools Search this Thread
Old 03-15-2011, 12:26 AM   #1
Senior Member
Thread Starter
iTrader: (7)
Join Date: Dec 2006
Location: Chicagoland
Posts: 1,344
Total Cats: 1
Default VA Home loan

I am quite possibly going to buy my first home pending this job, I have no idea where to start I am a veteran so I know I qualify. Has anyone/or does anyone have a VA loan? Pros/Cons where do I start, what do you pay a month etc.

I have good credit as well, above 730 on all 3. Thanks!
jtothawhat is offline   Reply With Quote
Old 03-15-2011, 08:17 AM   #2
Elite Member
iTrader: (12)
GeneSplicer's Avatar
Join Date: Sep 2009
Location: Birmingham, AL
Posts: 1,962
Total Cats: 140

when I checked into it years ago, I got better rates going with conventional - BUT that is when the market was good. Now at days, a VA loan may very well be easier to get approved over a conventional HL
GeneSplicer is offline   Reply With Quote
Old 03-15-2011, 10:34 AM   #3
Elite Member
iTrader: (7)
samnavy's Avatar
Join Date: Apr 2006
Posts: 5,820
Total Cats: 145

The biggest advantage to a VA loan is no down payment required, and no PMI required. PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI. PMI will continue to be payed until you've payed down 20% of the prinipal.

Instead of PMI, a VA loan will require a 1-time Mortgage Funding Fee.
The VA funding fee is required by law. The fee, currently 2.15% on no down payment loans for a first-time use, is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers. The funding fee for second time users who do not make a down payment is 3.3%. The idea of a higher fee for second time use is based on the fact that these veterans have already had a chance to use the benefit once, and also that prior users have had time to accumulate equity or save money towards a down payment. The good news is, that this fee can almost always be rolled into the loan, so the buyer does not have to come up with the cash up front.

Other than that, it's basically a regular loan. Almost every loan entity has VA loans. We got ours through a broker. If you don't have a bank already picked out, then a broker who will find you a loan is a good option. Our Real Estate agent had a mortgage broker who worked in our building and that's who we went with.

Original loan was $360k with the funding fee rolled into the loan. 30yr fixed at 6%. This was in November of 05. We refinanced last year at 5%, cost us about $4500 out of pocket, but only because we refi'd with the same bank. If we'd tried to refi with another bank using our same VA loan, the house would needed to have been reappraised... and it's currently worth about $280k. We're near $60k upside down, and couldn't have secured the refi.

If you want to learn everything you really need to know about buying a house, get "Mortgages For Dummies'... yes, one of the little yellow books at Borders everybody laughs at. If you really are a dummie, they're brilliant reads for a 95% solution. "Homebuying for Dumies" is good too... takes you through inspections, escrow, fees, etc...
samnavy is offline   Reply With Quote
Old 03-15-2011, 10:38 AM   #4
Elite Member
iTrader: (11)
chicksdigmiatas's Avatar
Join Date: Apr 2008
Location: Texas, 'Murica
Posts: 2,247
Total Cats: 6

Good post, I am getting ready to go down this road myself in the near future.
chicksdigmiatas is offline   Reply With Quote
Old 03-15-2011, 12:44 PM   #5
Senior Member
Thread Starter
iTrader: (7)
Join Date: Dec 2006
Location: Chicagoland
Posts: 1,344
Total Cats: 1

Thanks for the informative post!
jtothawhat is offline   Reply With Quote
Old 03-15-2011, 06:12 PM   #6
Senior Member
Join Date: Sep 2007
Location: Alamo City, Tejas
Posts: 774
Total Cats: 1

Sam's on target.

Some reading here: won't hurt either.

Stopping in at the local VA offices will also get you a wealth of information.
l_bader is offline   Reply With Quote

Related Topics
Thread Thread Starter Forum Replies Last Post
Project Gemini - Turbo Civic on the Cheap Full_Tilt_Boogie Build Threads 52 08-28-2016 04:18 AM
My solution for Oiltemp and Oilpressure input into Megasuirt (MS3) Zaphod MEGAsquirt 41 01-24-2016 12:25 PM
SimExperience fiberglass race seat in Chicago area chris101 Miata parts for sale/trade 2 10-09-2015 09:08 AM
Bad head gasket or ? shooterschmidty Engine Performance 8 09-30-2015 10:28 PM

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

All times are GMT -4. The time now is 07:17 AM.