VA home loan? A little confused..

[jm_joslin]

Me and my hubby are wanting to buy our first home but we are both a little confused about the VA home loan process. Originally, we thought you took a loan from the VA or government but now (if we understand correctly) you find a lender first??? We also thought you were guaranteed the home loan but one of our friends who was medically discharged said he could not get the loan because his credit score was too low??? I don't even know where to begin on trying to get the VA home loan. I am just confused about all the details of the VA home loan so any and all information about the VA home loan would be greatly appreciated.

[Tabby]

from what i understand with the VA loan you will find a lender. but if for some reason your dont make the payments . the VA will take care of it. i hope that helps and if i am wrong i know someone on here will know

[Alison]

The VA does not issue the loan, they merely back the loan, so that they repay the lender if you default on the loan, and then you are in debt to the VA instead. There is also a VA funding fee if you choose to use the VA to back your loan, which will add money onto your mortgage. I believe it is 1% extra. You do still need to have your credit approved to get a loan though. The requirements are significantly less than a traditional loan, but because of all the foreclosures recently, they have tightened up restrictions. Me and my husband can't get one at the moment, because 2 of our credit cards are at their limit.

[Jessica_Marie]

The VA does not issue the loan, they merely back the loan, so that they repay the lender if you default on the loan, and then you are in debt to the VA instead. There is also a VA funding fee if you choose to use the VA to back your loan, which will add money onto your mortgage. I believe it is 1% extra. You do still need to have your credit approved to get a loan though. The requirements are significantly less than a traditional loan, but because of all the foreclosures recently, they have tightened up restrictions. Me and my husband can't get one at the moment, because 2 of our credit cards are at their limit.

This is some good info. Dh did mention that VA doesnt actually issue the loan. It all makes sense now.

[blackberry]

The VA does not issue the loan, they merely back the loan, so that they repay the lender if you default on the loan, and then you are in debt to the VA instead. There is also a VA funding fee if you choose to use the VA to back your loan, which will add money onto your mortgage. I believe it is 1% extra. You do still need to have your credit approved to get a loan though. The requirements are significantly less than a traditional loan, but because of all the foreclosures recently, they have tightened up restrictions. Me and my husband can't get one at the moment, because 2 of our credit cards are at their limit.

Yeah, this is great information. I just wanted to add to this is that while the requirements are significantly less than a traditional loan, you still need somewhat good credit in order to be qualified. I don't know if the credit score limit is the same in every area.

[jm_joslin]

Oh ok. Thanks everyone. You guys are always helpful!

[Kerri]

Just find a lender and they will take care of everything for you. They will be able to walk you through the process. Like mentioned above the VA doesn't issue the loan, the bank does. It is nice not having to put a down payment, we actually got a check at closing. I didn't notice any extra things I had to do for the VA loan but then again this was our first time buying a house.

[Alison]

Like Kerri said, if it is your first time buying, you won't notice a difference.

[Compwalla]

Some sellers don't like buyers with VA loans because there are stricter requirements about what the seller must pay for and additional steps in inspection and appraisal that the VA will not waive. But it's not normally a problem because a buyer with a VA isn't likely to have funding fall through at the last second.

[novmom]

Not to post hijack, but can I ask a question regarding the VA loan??

I was just curious if to get the VA loan does it require to stay in the military? DH has decided when his contract is up this time that he is not going to reup, but he was not sure how this would affect the possibility of a VA loan. We're going to be looking at trying to buy a home early next year.

Thanks!