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VA Vs FHA

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  • #1

    VA Vs FHA

    Guys I have a question about these loans. The wife & I are in the market for a new home. based on a 250k house. A VA loan seems to me like A no brainer. Yes, you pay a funding fee but that is rolled in to the amount borrowed. No PMI. No money down option. although willing to put down up to 5%. that would lower the VA funding fee. With the FHA you put down 3.5% still pay PMI plus a small funding fee. the interest rates I was quoted today was 4.875% for both.

    I ask the question, because it seems to me like the loan officer I'm going through is directing me towards the FHA. I'm new at this home buying game. Is there more money in it for them I don't know. So this is why I turn to you folks to maybe shed some light on this. If I can save a few bucks. That's the way I want to go...

    Thank you
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  • #2
    The loan officer is going to direct you in whatever direction is in their best interests, not yours. I don't know your income or how much you have in savings, but in most cases I wouldn't consider buying a house until you have 20% down and have a 6 month emergency fund in place. a traditional 30 yr. loan is fine, a 15 yr. is better.

    Take the advise of the loan officer with a grain of salt. They work for the bank not you.
    Brian

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    • #3
      Our first loan was VA and it could be the loan officer is steering you toward FHA because VA is picky. They have to send out their own appraiser to approve the amount you are paying for the home....and approve the residence you are buying. VA required us to put an additional heat vent in a room because it didn't have a direct source into the room. Otherwise the loan would have been a no go.

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      • #4
        Originally posted by bjl584 View Post
        The loan officer is going to direct you in whatever direction is in their best interests, not yours. I don't know your income or how much you have in savings, but in most cases I wouldn't consider buying a house until you have 20% down and have a 6 month emergency fund in place. a traditional 30 yr. loan is fine, a 15 yr. is better.

        Take the advise of the loan officer with a grain of salt. They work for the bank not you.
        Brian in a perfect world I would have put 20% down. 10% is what I can put down. But the question is. Why do I have to if I have options. In this economy do we really want to drain the bank account. To start out the gate where gonna go with a 30yr mortgage. I know your absolutely right about the 20% down. It's just not going to happen.

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        • #5
          I agree with not buying without a 20% down payment. If you can't afford 20%, you can't afford the house IMO.

          As for VA, I agree with what terces said. VA has some wacky rules. I know someone who had one step going from the sidewalk up to the path leading to the house. VA made them install a metal railing for that step. Mind you, that step had been there for 50+ years without a railing, just like every other house on the block and in that neighborhood. But she couldn't sell until she spent a couple hundred on a metal railing. There were several other quirky things like that in order to get VA to approve the sale.
          Steve

          * Despite the high cost of living, it remains very popular.
          * Why should I pay for my daughter's education when she already knows everything?
          * There are no shortcuts to anywhere worth going.

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          • #6
            Originally posted by disneysteve View Post
            I agree with not buying without a 20% down payment. If you can't afford 20%, you can't afford the house IMO.

            As for VA, I agree with what terces said. VA has some wacky rules. I know someone who had one step going from the sidewalk up to the path leading to the house. VA made them install a metal railing for that step. Mind you, that step had been there for 50+ years without a railing, just like every other house on the block and in that neighborhood. But she couldn't sell until she spent a couple hundred on a metal railing. There were several other quirky things like that in order to get VA to approve the sale.
            Steve, why did I know you were going to say that...Steve it's not a matter of not affording the house. We can. Steve my question is why should I drop 50k into a house that I don't even know if we'll even be living there 5-10 yrs from now, based on expanded family. I'm not worried about not affording it. We both have good paying secured jobs with no CC debt & 1 car loan.

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            • #7
              VA is awesome, but obviously you have to be a vet to qualify

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