     John Reichart (Cheezboy) | Saturday, December 23, 2000 - 05:35 am 
Does anyone know if the credit requirements are more relaxed for a VA Loan when compared to other traditional types of loans? |
| Don Semler (Dsemler) | Monday, January 08, 2001 - 06:07 pm
VA loan credit criteria is similar to HIGH LTV conventional. Though when you in the services they tell you all the great benefits, they forget to mention that in order to get some of them, you have to have great credit.
Better to try FHA is you have some credit issues. Much more relaxed guidelines. FHA will finance 97.75% of the purchase price.
Buyer must contribute 3% of purchase price but that amoutn can come from a gift from various sources including grants, so as to have a Zero down deal. |
| Don (Don) | Tuesday, January 09, 2001 - 07:43 am
I got my VA with about a 630 Fico. One of the things I did like is paying the fee (I forget the name of it) up front, so I don't have to pay PMI (I only put 5% down).
But Don is right, the criteria is about the same, but it helps when you don't have the money to put down. |
| Don Semler (Dsemler) | Tuesday, January 09, 2001 - 09:05 am
The Fee you are talking about is called a VA funding fee. This should be about 2%. It's slightly different depending on your military status.
The "Fee" is added on top of your loan amount is not the same any points.
And you are correct, with VA there is not monthly mortgage insurance. |
| Christine Baker (Admin) | Tuesday, January 09, 2001 - 12:17 pm
A nice benefit of a VA loan is that it is ASSUMABLE.
The VA maximum loan amount was higher than FHA a few years ago in the Bay Area, but the rates were also about 1/2% higher than FNMA. And the property had to qualify too (inspection.)
Borrowers really should talk to a good broker to find out what will work best for their situation. |
