VA home loan tips needed

[Austin26]

Hello, we're trying to buy our first house next year and I've been doing a lot of reading. I already know about a partial property tax exemption (VA disability) and VA funding fee exemption. I'm also aware that the government doesn't actually give the loan, but it's a program through lenders that qualify for the VA home loan program. We generally know how to clean up credit and have some revolving credit, kept current on bills etc. We're probably both in the mid 600s, hopefully higher but I don't trust Credit Karma.

How do I safeguard myself from the differences in rates offered? All I've read has said that the VA home loan rates are all over the board, moreso than a conventional loan. I have a lender that was recommended that I'm dealing with but I prefer to get the best rate from a good lender. I have a realtor who has been a friend for years so I don't have to worry about that.

I'm trying now to refinance my wife's car so get our debt to income DTI ratio down but with our child support going out I'm pretty discouraged right now.

What tips do you have for me or what to avoid?

Thanks for reading.

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[Felix808]

In my market, I have always found that using other lenders were a better deal. Shop around if you can. A lot of sellers don't like to deal with VA loans because of certain criteria required.
YMMV best of luck in your purchase & Thank you for your service.

 

[Austin26]

In my market, I have always found that using other lenders were a better deal. Shop around if you can. A lot of sellers don't like to deal with VA loans because of certain criteria required.
YMMV best of luck in your purchase & Thank you for your service.

Thank you. When you say use other lenders do you mean a conventional loan?

 

[Blksunshine06]

I have bought 2 houses with VA and am in the process of a third. I used USAA in the past and currently but have chosen Pentagon Federal Credit Union for the next one (December close date). I have never had an issue buying a house with one, I have been told that some companies are a pain in the ass (Veterans United). PenFed currently has a 2.25 30 year rate, you should look them up! I locked mine in for 60 days.

 

[Jdc]

I used Navy Federal when I bought my current house and the rates were pretty good at the time. They were also fairly easy to work with even though the transaction was completely remote, since there aren't any branches locally.

 

[Red Mountain Pass]

VA Home Loan

No down payment
No PMI
Lower credit score allowed
Must have your certificate of eligibility
Rates are solid

Navy Federal, Penfed, or USAA all EZ process

Good Luck!

 

[Blksn955.o]

Conventional loans would be fanny Freddie loans as they conform to those conventional standards. Often called conventional or conforming loans.

VA loans are kind of like or often grouped like FHA as there are some additional gov backing/criteria often requiring a underwriter gov signature approval.

Credit score is not as important with a VA loan but it is ALWAYS better to work to having a higher score. credit karma is a good ballpark measure but most banks credit pull will generally be a tri pull.

There are 2 dti figures front end that is the amount of the home payment to your gross pre tax income and then there is back end that takes the house payment and you other obligations against your gross pre tax income.

back end items would be:
min credt card payment or payments
car payment
student loans
child support/spousal support
any other revolving debt like a personal loan

If refinancing the car drops the payment a decent amount due to a much lower rate and it has a big chunk paid off but is something you can't pay off entirely could benefit you.

 

[Felix808]

Thank you. When you say use other lenders do you mean a conventional loan?

I ment look outside the VA as I have found the rates to be better, but with your current credit situation, VA might be best as you won't have the PMI payment as mentioned if you don't have the 20% to put down. Best of luck to you.

 

[Austin26]

I ment look outside the VA as I have found the rates to be better, but with your current credit situation, VA might be best as you won't have the PMI payment as mentioned if you don't have the 20% to put down. Best of luck to you.

Oh, I forgot to mention that I don't need PMI because of qualification (VA home loan allows this / veteran in honorable standing) though we have less than 2-3% down. Thank you, and I will.

 

[Austin26]

Wow, thank you all for the responses. I knew there were some veterans crawling around the site but didn't expect that many so soon. I'm in (online) class right now and will read up on that tomorrow. Thank you guys.

 

[kodiakisland]

VA loans are super easy. I've done two and refinanced two. Banks of any worth have VA specialist that know what is needed and take care of everything. Rates are good, no downpayment, no PMI. Just tell your bank it's a VA loan and they will hook you up with the right person. Most banks can get your certificate of eligibility for you if you don't have it already. Just ask. Same with disability ratings. Banks also have access to that info, so you don't have to prove anything.

 

[Austin26]

Alright, I've had a chance now to read your responses now that my brain isn't mush from school last night. This is encouraging. I spent half the day yesterday learning about home loans and how to calculate DTI but yeah that's encouraging. I'll talk with my wife and I'm sure she'll also want to thank y'all for your help, so thanks!

 

[j_marinelli]

You might of already did this but get with a mortgage guy/gal (usually relators have one they can refer). They can help you go through loan scenarios that can be pretty close to final deal but without running your credit score. It does sound like VA loan is the route for you. They are very popular in our area as it eliminates the PMI. That was the main force in us refinancing our house was that we had enough equity to go conventional and drop the PMI. Heck the lower interest rate and no PMI dropped our payment a bunch.

 

[Austin26]

You might of already did this but get with a mortgage guy/gal (usually relators have one they can refer). They can help you go through loan scenarios that can be pretty close to final deal but without running your credit score. It does sound like VA loan is the route for you. They are very popular in our area as it eliminates the PMI. That was the main force in us refinancing our house was that we had enough equity to go conventional and drop the PMI. Heck the lower interest rate and no PMI dropped our payment a bunch.

Thank you and it's always good to hear good reviews. I'm most excited about the pmi or lack thereof as well.

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