• Please take a moment and update your account profile. If you have an updated account profile with basic information on why you are on Air Warriors it will help other people respond to your posts. How do you update your profile you ask?

    Go here:

    Edit Account Details and Profile

VA Home Loan

Status
Not open for further replies.
P

Paul Burke

Registered User
Just posting one of those shameless yet selfless messages on here for those interested. I originate VA Home loans in TN, KY, GA, and MD and have come across a lot of bad gouge when it comes to active duty and veterans alike trying to use their VA Home loan. Most of which have to do with credit issues and getting the certificate of eligibility and the closing costs involved. If anyone has any questions regarding anything about the VA Loan then e-mail me or post it on this forum. I'd be glad to assist in any way possible.
 
W

WFU2USN

Registered User
Hi Paul,

How long should it take to get a certificate of eligibility? I sent of for mine a while ago and never got it. Are you up in Winston-Salem?

Robin
IS2(SCW)
 
P

Paul Burke

Registered User
Getting your certificate of eligibility shouldn't take long at all. If you are currently on active duty you must show evidence of how long you have left on active duty, typically, just a copy of your orders is all it takes. The easiest way to get it is to meet with a broker who is registered with the VA. Take a copy of your orders, or your DD-214 if you are no longer on active duty, and they can get a certificate ordered online that only takes a few days. You will have to fill out the same form as well for when it is submitted to the lender.

Also, recently I have found that a lot of veterans are being told that they have to have higher credit scores in order for them to use their VA benefits. That is misleading. Some of the more popular lenders require a higher credit score but there are hundreds of lenders to choose from. A broker or direct lender may try to get you to do a different type of loan if you have bad credit. DO NOT ACCEPT IT! Your VA Loan benefits WILL SAVE YOU A LOT OF MONEY! Instead of having to pay for Mortgage Insurance, the VA requires a 2% funding fee which can be rolled into the loan. MI on a $100,000 loan will cost you ~$65 a month until you reach 80% Loan-to-Value on your home. The VA loan will have a slightly higher rate,~.5%, which will result in only about $30 a month.

Sorry for rambling on there. I'm in Nashville but I think a buddy of mine has a license in NC to help you out with it.
 
F

fnewton

Registered User
Check with Navy FCU for the Veteran's Choice home loan. I just closed on my house using that. It is just like a VA Loan except
-There is no funding fee
-the rates are comparable
-You can borrow more if needed
-You only need one inspection/and no cert of eligibility
-You can still uses your VA loan later.
Without sounding like a commercial, the paperwork was small, the process was quick and the service was great.
 
P

Paul Burke

Registered User
The Veteran's Choice Home Loan is actually a standard conventional mortgage loan with an appealing name in order to market it. A conventional mortgage is simply your standard Fannie Mae backed run of the mill mortgage loan. VA and FHA home loans as well as sub-prime Jumbo loans require the 2nd inspection in order to be more easily securitized. On conventional loans, one can get usually up to 107% of the appraised value/ purchase price. Most lenders don't offer anything more than that. The bad point to conventional mortgages is having to pay mortgage insurance. If you have 20% to put down on a new home then you can avoid it, otherwise you have to pay it. Unless you plan on owning the house for more than 11-13 years then it is cheaper to use your VA benefits. Many banks and brokers just don't like to do the VA loans. It is more time consuming and there is a lot more perssure trying to get everything done on their end in order to close in a timely manner. They can really be a pain in the ass to put it bluntly. That's why many lenders try to qualify applicants on other 100% loan programs. They are short, sweet and easy. Long story short, if you have quite a bit of money to put down on the loan then go conventional, if not then use the VA loan. Don't let a bank teller who has been working there forever talk you out of using your VA benefits. If you have earned them then by all means use them.
 
S

schmuckatelli

*********
If you do an 80-10-10 you only have to put 10% down and won't have to pay PMI. Also, a 30-year fixed is a bad deal unless you plan on owning your home for a long time and want to lock in the low rates we are enjoying today. For most people a 3- or 5-year ARM (adjustible rate mortgage) will be cheaper, especially if you already know you are going to sell your house in a few years.
 
P

Paul Burke

Registered User
Actually, VA announced that for the next 2 fiscal years they are allowing lenders to make 3/1 adjustable rate mortgages. It begins on October 1, 2003. Basically, the loan is fixed for the first 3 years then can adjust no more than 1% each year thereafter with a cap at 5%. Navy and Marine Corps personnel that are on active duty will really be able to see the advantages of that loan program due to sea/shore rotations.
 
J

jburnes

Registered User
I'm not sure if Paul Burke is still around, but I was reading that to get a VA Home Loan you have to have been regular active duty for atleast 181 days? Regular active duty as opposed to in training and on active duty. If that is the case then can I refinance a home using a VA Home Loan?

That 3/1 adjustable rate motgage sounds like a good deal, does anyone have one of those?
 
P

Paul Burke

Registered User
Sorry for the late reply. Since you already own your home it is cheaper to do a conforming 3/1 refinance. There is no funding fee and the rate is better.
 
K

KyrieEleison

Student NFO
Can you just confirm the fact that we can't use the VA loan until on active for 181 days.. not in a training command? Meaning that from flight school I wont be able to buy a house at my first duty station using the VA loan until I'm 181 days in over there?
 
G

GTDaveMac

Registered User
I just did a google search and found this:

"1. What service is not eligible?

You are not eligible for VA financing based on the following:

World War I service.
Active Duty for Training in the Reserves.
Active Duty for Training in the National Guard (unless "activated" under the authority of title 10, U.S. Code). "


Looks like flight school isn't in the same category of training. I could be wrong.
 
P

Paul Burke

Registered User
It's 181 days. In the VA guidelines, the term "training" is referencing the weekend warrior reservists. Start the clock from your first day of OCS.
 
Status
Not open for further replies.
Top