Topic: To all veteran homeowners that used the VA home loan

[Jack Morris]

Just curious, what percentage of liabilities vs income did ya'll have? Compass Bank had to send my stuff to the underwriters because the house I want (VA owned) would make all my expenses go to 66%, which they say is high. I asked the girl, "whaddya want me to do, live in little Mexico? I do not think so." Of course I could cash in all stocks and stuff, but the VA counselor (Who bought one in 01) told me nooo, you do not even need to do that. I also pay no PMI and no funding fees.

I do not see what the big deal is, my check is guaranteed, it's not like I'm dependent on the job markets or the economy, those people could lose their job at any time, but with a govt. guaranteed check, if that fails, the nation will be in chaos anyways, so who cares?

[Dracho]

Jack,

Having used my VA loan, and having sold to someone with a VA loan, being the seller SUCKS.. with a capital S.

The seller has to pay most of your closing costs as opposed to a regular mortgaged buyer, so they are probably going to raise the price on you because selling to you instead of a regular mortgage just cost them an extra $2000 or so.

From your end the rate is higher and the VA origination fees are a rip-off.  You can go to Wells Fargo and do an 80 / 10 / 10 for a point-and-a-half less than a VA loan, and still not pay PMI (80/10/10 means they finance 80%, you put down 10%, and you take a second for 10% to get your down payment to 20% and no PMI).

We just bought a house we are living in and instead of going VA, I did a 70/05/25 @ 6.25% for 30 years.

Though in your case, the VA owns the house so there may be a slightly different dynamic involved.

[Jack Morris]

No closing costs to disabled vets.  It seems though that VA, in their infinite wisdom (Lack of), let's agents sell their houses. I think it wiser to sell directly to vets, as in my case all they have to do is take out the mortgage from my pension check. From what I've heard, that is how it used to work in the old days. Nowadays it's all about cost cutting. Gone is the VA home loan guru in Temple, TX, only to be replaced by that wonderful touch tone phone and the options which require you to press a gazillion numbers.  No, you do not get to speak to a live person, us vets are "beneath" that.

[Sten]

For my Second home FHA beat VA hands down.