Which loan is right for me?

[HisFirstLady]

Given my current scores (see below) what loan will be the best option for me? I am eligible for VA but is conventional a better route?  Any advice will be greatly appreciated.

[tooleman694]

Typically conventional is always the best way to go. But VA might be better if you can do it.

[wpbguy]

I think VA will net the most value to you in terms of rate and terms. However, it has more conditions to be met in terms of your home like the required appraisal, inspection, etc. FHA loans share similarities with VA. By far, the toughest issue I had with FHA financing in my area was that many sellers were purposely avoiding FHA buyers because they were aware of the possibility that the listed home could have a problem with the appraisal and to a lesser extent the inspection. Since inventory is low, sellers are able to sell for a much higher price than if inventory was more available. This can make for a tricky appraisal situation. This is from my own personal experience. Many of my offers were shot down instantly due to FHA financing alone. But we still persisted and made offers on home that did not specify FHA financing or even flat out stated no FHA. Thanks to my tenacious realtor, she doesn't scare easily and continued to submit. Nonetheless and we came out on top. I would say to consider VA and fall back to conventional if you need to. But that's just my opinion.

Hope this helps!

[tooleman694]

Never understood why people would have an issue with FHA because of an appraisal.

[foofighter74]

Because financing can fall through easier if the appraisal doesn't merit the sales price being asked.  The preapproval won't mean anything because the house didn't appraise high enough, and then the seller would either have to find another buyer or drop the price and/or make repairs.

[tooleman694]

Well yeah, but the same would go for any kind of financing. Doesnt matter if it is FHA, VA or Conventional.

[foofighter74]

Well, in terms of FHA vs. conventional...the property conditions for FHA are more strict, so repairs might be ordered for FHA but not for conventional. 

[tooleman694]

Well thats a good thing then.

[foofighter74]

Not for a seller looking to dump a pile of garbage house off on someone. lol.

[wpbguy]

While I think it is always in the best interest of the buyer, it may not be the best situation for the buyer in a seller's market. For instance, FHA guidelines require a home with a pool to be clean, clear and blue. If the pool is green and needs cleaning, but the house is in pristine condition, unless the pool issue is resolved, that deal is sunk. But I truly agree that the appraisal and inspection is in the best interest of the buyer. However, some discretion would be nice in such a tight market.