what can u tell me about VA Loans. ?

FarmboyBill · #1 11/02/12, 02:20 PM

I thought that a house had to be in near prime condition to qualify for a VA loan. REA says shes got a banker trying to get me qualified for a VA loan on a house that is in bad need of repair. What do you think??

sammyd · #2 11/02/12, 02:24 PM

Any time I have tried or my folks have tried to get a VA backed loan they were very picky about the house and if it had any sort of land it was a no go.

simi-steading · #3 11/02/12, 02:27 PM

I've never heard of the VA giving a loan on a house that wasn't ready to move into with no work. A person can try all they want to get you that loan with them, but that doesn't mean it's gonna happen.

REA = Real Estate Agent? If so, they should know the VA is real picky..

If it's a place with land, check out Farm Credit

DebM · #4 11/02/12, 06:12 PM

Agreed. Tried to use a VA loan with the ex. However, the house we ended up buying had a relatively short list of easy fixes, which the owner took care of, then the VA loan went through. Out in the country on 1 acre.

vicker · #5 11/03/12, 12:25 AM

These days there are better avenues and loans, Bill.

Quabbinite · #6 11/03/12, 04:50 AM

VA is picky and they will not finance land......only structures on land (a lot or a little). If you have a VA loan, get ready for more procedures. Aside from the Bank Appraiser, you have a VA Appraiser. Aside from your own Inspector, VA will also want to know what condition the home is in. The only benefit to taking on a VA loan is that you don't have to meet conventional standards such as paying 5% down (although the last time I financed a house was in 2008, so I'm not sure what's happened to that number since). However, keep in mind, you WILL pay approximately 3% of the purchase price to secure the VA loan, but it will be paid over the term of the loan.

po boy · #7 11/03/12, 05:39 AM

This Link shows the funding fee for VA.

This is VA's appraisal Guidelines.

Minimum Property Reajirements. This is what you need to look real close at the requirments.

The appraiser determines if the property qualifies are not. It has to be liveable and safe. The bank does not do their own appraisal in most cases.

Good luck.

FarmboyBill · #8 11/03/12, 08:02 PM

Here in Okla, The banks DO do appraisels on property they will loan on, OR NOT. They do NOT make loans on the asking price. They make a certain percentage of a loan on thre APPRAISED value of the place.
OR they will loan X amount baised on your credit rateing, AND The appraised value of the place. Whichever is the lower amount.

plowjockey · #9 11/03/12, 08:38 PM

Quote:

Originally Posted by vicker

These days there are better avenues and loans, Bill.

That depends.

When we refinanced our house, we did not have 20% equity, so we would have to pay $100/ pmi PMI.

VA rate was only slightly higher and no PMI.

VA loans also have no money down, even though you have to pay a funding fee of 2.5%.

It's much harder to get a "no money down" conventional mortgage, now days, for obvious reason.

coolrunnin · #10 11/03/12, 08:42 PM

I thought you didn't have enough active duty time to qualify for a VA loan?

It's been a bunch of years since we went the VA route but they loaned on my first farm back then. Mid 80's.

po boy · #11 11/04/12, 07:14 AM

Quote:

Originally Posted by FarmboyBill

Here in Okla, The banks DO do appraisels on property they will loan on, OR NOT. They do NOT make loans on the asking price. They make a certain percentage of a loan on thre APPRAISED value of the place.
OR they will loan X amount baised on your credit rateing, AND The appraised value of the place. Whichever is the lower amount.

Bill, If they are getting you a VA loan, the appraisal must be ordered through VA.

If they are doing a non agency loan, then they will do an appraisal.

Loans are based on the lesser of the appraised value and purchase price.

Good Luck

FarmboyBill · #12 11/04/12, 03:03 PM

I thought thats what I said in my post, as to your second line., AND your last.