VA vs. Convetional?

[wagsk1]

This may be a silly question but home shopping is something new for us. Is there any reason to not use my VA loan vs. FHA or conventional? My wifes scores are all in the high 700`s and my middle will be around 700. Budget will be around 350k here at the Jersey Shore and there are plenty of houses within that budget here, looking at smaller homes due to empty nest now.We will not be looking in flood areas. Combined yearly income is 135k, with both being employed at the same jobs for over 10 years each.Plan on using either USAA or NASA credit union. Thanks!

[mynameainttracy]

A big factor here would be how much do you have to put down? 

[wagsk1]

Very little as we just finished paying off 21 years of school tuition for both of our boys, (catholic school and college). I know VA makes sense because of that but if we did decide to make a 20% down payment( it is possible) is there still a reason to not go VA?

[edcampbell613]

No PMI/MI for VA regardless on how much you put down

VA does charge a fuding fee (see matrix http://www.benefits.va.gov/homeloans/documents/docs/funding_fee_table.pdf)

If you are looking at a slight fixer upper VA appraiser will be more tough as VA is out to protect the buyer, they will have the seller fix more itmes than FHA or conventional would not-pick

You get a better rate with VA

Only down side is the funding fee, but that gets rolled into the loan,

[mynameainttracy]

We have recently been through the under writing process for a VA loan preapproval. We went that route because we wanted to pay as little out of pocket as possible (because in our area we need that money for closing costs) and absolutely didn't want to pay PMI.  That did narrow our home search to newer homes because we knew the VA process would be much harder on the property. 

Also, you can qualify to have the funding fee waived. In our case we do and that makes a VA loan a no-brainer. 

[wagsk1]

Great! Thanks so much everybody.

[edcampbell613]

Only way to get VA funding fee waived is if the veteran has any percantage of service related disability. (as far as I know)

[edcampbell613]

page 8-17 http://www.benefits.va.gov/WARMS/docs/admin26/handbook/ChapterLendersHanbookChapter8.pdf