While there are many different types of mortgage loans available, some will tell you that a VA loan is the single best type of mortgage available today. Why? Obviously you have to qualify for your entitlements, but for those that do, the VA mortgage has it’s distinct advantage over it’s counterparts.
To better understand this, you have to better understand the different loan available today. The grid below is designed to help you better understand the benefits of getting a VA loan, and how they compare against other loans. The VA is extremely flexible when it comes to foreclosures, Short sales, Interest Rates and Debt to Income Ratio Maximum Amounts.
The primary drawbacks to a VA loan are limited. They typically include the VA funding fee that can range from 1.25%-1.75% of the loan amount for a “first time use” up to 3.3% for “subsequent uses”.
Also, for those that are planning on buying a home, the VA has non allowable fees. These are fees that you as a VA buyer are not allowed to pay for in conjunction with you loan. While this may sound good, the reality of it is that while the VA buyer doesn’t have to pay this fee, somebody does. Typically these fees are requested of the seller, and can amount up to 1% of the sales price. This puts the VA buyer at a disadvantage if there are multiple offers on the property.
Some lenders have ways around this issue. Nick Vaccaro with C2 lending will cover all of your non allowables up to 1%. If you’re looking for a great VA lender and don’t want to miss out because you’re using your VA entitlements, his group can keep you in the running.
IF you’re looking for a great website to track VA approved properties in San Diego, go to www.vahomescalifornia.com. This site offers you the ability to check for VA eligibility on a home and will send you automatic updates of homes becoming available that you may be interested in. The site has gained quite a bit of notoriety with local VA as it provides a wealth of information for those that need a VA loan.