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Valued Contributor
ivyalmighty
Posts: 1,451
Registered: ‎03-19-2008
0

FHA or VA?

I keep hearing so much praise for FHA programs. DH & I have been patiently waiting for a month now, to get his lien release from the house he sold in 1999, so we can then send it in and wait another two- to three weeks to get his VA eligibility reinstated & cert of eligibility to buy using the VA loan program. It's a LONG process.
 
Would it be easier/quicker/better to go FHA? We liked the VA program b/c they offer 100% financing, including any closing costs or other fees wrapped up in the loan & with our savings wiped out last December when we found out about his tumor, we no longer have funds to cover closing.
 
Dallas, you have been cheering on FHA.. can you give me a little objective comparison of the two? Approval processes? Requirements? LTV cutoffs? Out of pocket costs? Am't they'll finance? Avg int rate comparisons? Would we lose the ability to use VA later on if we buy FHA now?
Super Contributor
DallasLoanGuy
Posts: 6,150
Registered: ‎07-03-2007
0

Re: FHA or VA?

You can accomplish the same thing with FHA(100%) by using a seller funded down payment assistance.
 
1st question: Is this the house you will grow old in? I ask because the VA fuunding fee is more the second time you use it.... and it may be best to save that eligibility down the road.
 
VA is a little more strict. It would be best to compare the two side by side with 2 GFEs(if you qualify for both)
And think long and hard about the funding fee......
 



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* Lending across the entire 'Great State of Texas' since 2004
Valued Contributor
ivyalmighty
Posts: 1,451
Registered: ‎03-19-2008
0

Re: FHA or VA?

[ Edited ]
We know the funding fee won't be an issue because thanks to the brain tumor & the general severe wear & tear of being a Marine for 20 years, his disability will be at least 60% (we've been told to expect 75-100%) and therefore funding fee is waived. So that won't factor in to our decision.
 
In what ways is VA more strict? I'd heard it was easier to qualify b/c they don't generally base it off FICO scores, but only from sea lawyers, never from an actual lender/broker/realtor type.

 
-We don't have any lates for the last 2.5 yrs.
-We've never had a BK or repo or foreclosure.
-All collections on both reports are completely paid off.
The only (paid-off) collections on DH's are two Cap1 chargeoffs from early 2000's. The only (paid-off) collections on mine are two old med bills & a cell bill that is due to fall off in Aug of this year.


Message Edited by ivyalmighty on 05-05-2008 06:24 PM
Super Contributor
DallasLoanGuy
Posts: 6,150
Registered: ‎07-03-2007
0

Re: FHA or VA?

[ Edited ]
you should qualify for both.... errrr, or should i say that i have not seen anything to make me think you wont qualify for both.
fha allows the seller to pay closing costs up to 6% of the contracted sales price. va = 4% seller credit back for costs.
no funding fee? va is a the way to go.
 
no pmi.... no up front pmi of 1.5%(kind of like the funding fee) and the rate on va is only about .125% more than fha
 
depending on loan amount and how long you plan on staying in the property, va seems like the way to go.....
a good loan officer will be able to compare/contrast the two for you


Message Edited by DallasLoanGuy on 05-06-2008 08:56 AM



* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' since 2004
Frequent Contributor
caliborne
Posts: 263
Registered: ‎03-27-2008
0

Re: FHA or VA?

We had to have a VA appraisal, it went great and was not an issue at all. They did not require an inspection (The house is new construction)

For us, it was honestly painless.
FICO 6/2/08 , EX 754, 5/2 TU 720 EQ 722
Frequent Contributor
caliborne
Posts: 263
Registered: ‎03-27-2008
0

Re: FHA or VA?

ivy also dont' forget Navy Fed has the Veteran's Choice loan which has similar terms to the VA loan but does not require the form that you can have a VA loan!
FICO 6/2/08 , EX 754, 5/2 TU 720 EQ 722

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