New Member
Posts: 2
Registered: ‎10-23-2010
Re: Evaluating Conventional vs. FHA

I would just like to add, for my first home attempt with a VA loan, it is in NO way shape or form any easier, or more lenient to be approved. In our current paranoid lender market, we are going through the gauntlet of meeting condition after condition, having to pay off almost everything on our credit,  because of manual underwriting. The problem seems to be, the VA's own 'guide to lenders' handbook that specifies what should and shouldn't be a factor in determining approval, are not backed by any federal law or upholding to force upon lenders. Therefore, things that are blatantly supposed to be a non-factor, are being forced upon us to justify and resolve. It is still a lender/investors market, and up to THEIR standards. As far as I'm concerned, the feds need to beef up their authority over this programs issuance or it will be rendered pointless.

 

Kindof a shame that a federal program specifically set up to help us veterans get into our first home, has been completely under minded by the banks. The only benefit I will see is the ability to have no money down, and not to have to pay mortgage insurance. Other than that...good luck standing in line at your local mortgage broker.