Is a VA loan better than a regular loan?

A loan quaranteed by the VA is always good - and there is not MI insurance on a VA loan. Where in a normaly conforming loan any amount over 80 percent of the value you are borrowing does have mi insurance on it. (unless you include the MI into your rate) but it comes out about the same.

Here is some helpfull information:

VA Loan Information: Visit the home page of the VA. http://www.va.gov/

http://www.vamortgagecenter.com/

The VA has increased their loan limits! The maximum loan amount in most cases is $417,000. The VA also offers some advantages over conventional loans:
Other benefits of a VA Loan:
1. No Down Payment required at closing
2. Lower closing costs than conventional loans
3. No prepayment penalty if you pay off your VA loan early
4. No monthly Private Mortgage Insurance payment
5. The lender is willing to negotiate your interest rate

GOING TO THIS SITE, IS A MUST: http://www.homeloans.va.gov/veteran.htm

IT HAS THE FOLLOWING HELPFUL INFORMATION FOR YOU, ALL ABOUT THE VA LOAN - Home Loan Guaranty Services

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) FHA/VA approved too. If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.

Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

When you Decide to buy, decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok - since VA rates are lower in the 6's.

va loan allow you to pay no money down. but there is a fee for using the va loan.

About the Loan Guaranty Service

The VA Loan Guaranty Service is the organization within the Veterans Benefits Administration, charged with the responsibility of administering the home loan program.

to find out rule for Eligibility follow this link
http://www.homeloans.va.gov/elig2.htm

VA loans are great to have if you qualify and meet the requirements of the mortgagee. The rates are lower than the regular loans, the down payments are normally very low to none and the loan is insured like the FHA loans are.. Also, there are home that you can purchase from the VA site which are not purchasable by civilians..

usually VA loans are better as far as rates & terms. especially 4 1st time homebuyers and those w/A+ credit. this may or may not be the case 4 commercial property or multiple dwelling units where it won't be owner-occupied.

If you are entitled to benefits for VA Lending, YES! Rates are fixed and competitive with conventional financing for 90% loans. VA loans can be for up to 100% of the loan (cap at VA limits) with most if not all of the closing costs paid by the seller. There is not a PMI (private mortgage insurance) payment required with your monthly payment. VA has a different set of quidelines for underwriting and credit scores then conventional financing. See a VA lender for all the details.

It's usually a lower rate.

It's guaranteed by the VA

A V.A. loan has a lower interest rate.

The rate on a VA loan is lower. You can get 100% in one loan with no Mortgage insurance. The only down fall to this loan is the upfront funding fee charged from the VA office. You will have that in addition to any lender fees. If you will have seller paid closing costs this still might be the best way to go. You must also live in the home. P.S if you do not have your original cer.of eligibilty you might want to order it. Some time it can take a minute to get it.

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