Buying (hopefully) a home later this year. Never used my VA Loan, having been here for about 3 years, this is the longest I've lived in a place as an adult.

Time to settle down.

Was leaning towards either Pen Fed or Navy Fed for the loan though USAA might be a possibility, too.

Homes are expensive here. Our budget might not be what we'd like it to be but wife definitely does not want to stay here. Was thinking about moving further away from the Orlando area for lower priced homes and more land. Also want to get away from the looney left in Orlando/Orange County.

Any words of wisdom from the brain trust here?

Wife is a mortgage processor. That said, she says "the only real issue to watch for is the condition of the property. A VA home appraisal will be heavy on items co signing safety, i.e. hand rails, steps, egress (doors and windows). If the property needs work in those areas, it would be up to the seller to get it up to snuff.

Don't lock yourself into VA only, depending on the areas, FHA or Rural Development loans may offer more flexibility"

I say either way, a good home inspection is key. Often in foreclosure situations, the property upkeep might not be the best, and a good home inspector can help determine real issues before you get into trouble.

VA loans are also more expensive. Higher rates and PMI

When you are ready, I can put you in touch with a good home inspector. Certified, etc. He is detail oriented to the point of being anal.

Previously an underwriter and negotiator on both the originations and default side of mortgages.
As stated before, VA loans are heavy on safety "issues". Short sales, the homeowner may work with you a bit on a minor repair, a Foreclosure, at least the Foreclosures my bank serviced, property strictly as-is, making VA loans a difficult close, unless the property was pristine, and they never were.

In my experience with VA home loan, dwelling inspection is VERY thorough and some sellers don't like that. VA also is reluctant to finance anything that involves a HOA community. (RE: Condo, Townhouse)

quote:

Originally posted by rexles:
VA loans are also more expensive. Higher rates and PMI

VA Loans do not pay PMI. Not sure on the interest rate yet as I haven't dug that deep.

quote:

Originally posted by V-Tail:
When you are ready, I can put you in touch with a good home inspector. Certified, etc. He is detail oriented to the point of being anal.

Was it the gentlemen you brought to the range with us back in May 2017?

quote:

Originally posted by GWbiker:
In my experience with VA home loan, dwelling inspection is VERY thorough and some sellers don't like that. VA also is reluctant to finance anything that involves a HOA community. (RE: Condo, Townhouse)

The high fees are turning us away from a condo or town home. Some of the fees were $200+ each month. I told my wife some of them have nice benefits but those fees will only go up and they're forever even after the mortgage is paid off.

VA loans have no PMI requirements. They do have a funding fee (depends on your status and any down payment) but you can do a no down payment up to 103% of value with no PMI. If your lender says that PMI is required, it's from them not the VA.

As for rates right now, VA may or may not be the best for you, but still worth looking at. When we did our loan, VA saved us .875

Are you a vet who is collecting disability benefits? There is a funding fee for VA loans, however the few is waived for vets collecting a disability. Unless you need the VA loan to avoid PMI, the funding fee may make other types of loans a better deal.

As stated above, a VA appraisal/inspection can be problematic on properties that have issues the VA considers safety hazards, or if the property appraises too low. For example my first home had no handrail on the two steps that led to the porch. The seller had to install a handrail, that met VA's criteria, before they would approve the loan. The problem is the seller on a short sale (someone already in financial trouble) is likely to be unable/unwilling to pay for such changes, and the seller on a foreclosure (a corporation) is extremely unlikely to be willing to make such changes. Further, short sale and foreclosure properties can be tricky to properly value, if the VA appraiser the home for less.than the sale price, again they won't approve the loan.

That's not saying it can't be done, but know that it can be a lot trickier than other sales.

quote:

Originally posted by rexles:
VA loans are also more expensive. Higher rates and PMI

That might be the most ignorant thing ever said regarding home loans. The loan is insured by the government, so there is no PMI on a VA loan, even if there is no down payment.

Further, I've used a VA loan 5 times. The rates were at or below conventional loans. On my most recent loan, the VA 30 year fixed rates I was able to get was lower than conventional loans, by .125% or more. I am currently in the market for a new home, and again rates are slightly better on VA loans, than conventional.

This message has been edited. Last edited by: DMF,

quote:

Originally posted by GWbiker:
In my experience with VA home loan, dwelling inspection is VERY thorough and some sellers don't like that. VA also is reluctant to finance anything that involves a HOA community. (RE: Condo, Townhouse)

Every property I've purchased with a VA loan has had an HOA, and the first was a townhome. The HOA was not a factor in any of those loans. The same is true of many of my friends who have used VA loans in properties with an HOA, including townhomes.

quote:

Originally posted by Edmond:

quote:

Originally posted by V-Tail:
When you are ready, I can put you in touch with a good home inspector. Certified, etc. He is detail oriented to the point of being anal.

Was it the gentlemen you brought to the range with us back in May 2017?

May 2017? You're joking? I can't remember what I had for breakfast this morning, and it's not even 9:00 am yet.

If it was a moderately tall, slender guy who had a very nice S&W Model 19 revolver, 2.5" or 3" barrel, yes, that's the guy.

quote:

Originally posted by Edmond:

quote:

Originally posted by GWbiker:
In my experience with VA home loan, dwelling inspection is VERY thorough and some sellers don't like that. VA also is reluctant to finance anything that involves a HOA community. (RE: Condo, Townhouse)

The high fees are turning us away from a condo or town home. Some of the fees were $200+ each month. I told my wife some of them have nice benefits but those fees will only go up and they're forever even after the mortgage is paid off.

The HOA fees where I live are $79 / month (actually paid quarterly, $237 / calendar quarter). That includes access to two swimming pools, tennis courts, basketball, raquetball, etc., as well as routine maintenance of common property such as streets (paving), landscaping, entrance / exit gates, etc.

Some good and a whole bunch of bad info here.
I am a FL Real Estate attorney and closed 475 transactions last year.

VA loan has no PMI, there is a funding fee which can be waived, I don't know why or how that happens.
On a single family home in FL an HOA is a non-issue, VA is fine.

property conditions will drive the loan, if it doesn't check out it wont fly, things like roof condition, an unfilled or dark pool, cracked front steps, those are VA killers and could be an issue on a foreclosed home.

I have great lender here who can help you feel free to reach out to me as he can do any type of loan out there as he is a lender, not a broker.

I've gone VA twice now and it's good deal for us vets but it can also be a real PITA.

They are really nit-picky about things that a normal real estate transaction would let slide and will not let you get the loan until they get fixed.

We bought our current house in an estate sale and the 3 children of the man who owned the home made it very clear that they were not going to fix anything the VA found objectionable so in order to make this work, I ended up spending about $2,000 out of my own pocket to replace a faulty and dangerous (CO hazard) water heater, light fixtures in closets with bare bulbs, GFCI receptacles where required, etc

Not trying to scare or discourage you, but a foreclosure or short sale with VA may be very difficult so be forewarned.

quote:

Originally posted by rexles:
VA loans are also more expensive. Higher rates and PMI

Wrong and wrong.

I got a very good rate that was commensurate with the market (3.75% I think?) and there is no PMI. There *is* a funding fee that you can pay or have wrapped into the loan but it's not a huge amount.

quote:

Originally posted by DMF:

quote:

Originally posted by GWbiker:
In my experience with VA home loan, dwelling inspection is VERY thorough and some sellers don't like that. VA also is reluctant to finance anything that involves a HOA community. (RE: Condo, Townhouse)

Every property I've purchased with a VA loan has had an HOA, and the first was a townhome. The HOA was not a factor in any of those loans. The same is true of many of my friends who have used VA loans in properties with an HOA, including townhomes.

You might have reputable HOA's in your ares, but is an issue here (Tucson) with VA rep and the realtor claims some HOA's misuse HOA fees for shoddy outside building repairs.

I've been told that only a few HOA's in Tucson will met VA's stringent rules.