I have a question about VA Home Loans

iVillage Member
Registered: 09-25-2003
I have a question about VA Home Loans
51
Wed, 02-04-2004 - 11:15pm

DH has said he'd like me to look into a VA Home Loan that we would use to purchase the home we're currently renting.

Virgo
 
iVillage Member
Registered: 03-27-2003
Sun, 02-15-2004 - 5:24pm
8.08, WHO IS EXEMPT FROM PAYING THE FUNDING FEE? (7/1/2000)

The following persons are exempt from paying the funding fee:

• Veterans receiving VA compensation for service-connected disabilities.



• Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay.



• Surviving spouses of veterans who died in service or from service-connected disabilities (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using their own entitlement on the loan).



iVillage Member
Registered: 03-27-2003
Sun, 02-15-2004 - 5:30pm
Alot of people have little to no money to put down on buying home. I personally would have never thought about buying a house with no money down, but I do these loans everyday and plenty of people come to closing with no money.

I also have a good amount of vets who can't qualify for VA loans due to their income to debt ratio's. VA takes into account alot of things that FNMA doesn't such as utilities, maintenance, taxes and so forth. So, I often flip these people to a FNMA loan with 0-3% down.

I personally would like to see VA loans really require no money down at all -funding fee. I think it is the least we could offer those who have served their country.

iVillage Member
Registered: 03-26-2003
Sun, 02-15-2004 - 6:09pm
We bought our house about 4 months before DH retired so he did not have his disability rating yet. If we would have waited until he was retired and had the rating we would have saved the $2000 funding fee but the way housing costs were going up at the time if we would have waited we probably would have spent at least that much more to buy a house. So it was a Catch 22 situation.
iVillage Member
Registered: 03-26-2003
Sun, 02-15-2004 - 7:47pm
I *did* give all the facts. All the pertinent ones. You stated "a veteran ALWAYS pays the funding fee" I replied with "not every veteran has to pay the funding fee." A statement which cannot be *factually* disputed. The REASON not every vet has to pay is completely irrelevant to the FACT that exemptions exist, particularly if, as you claim, you already knew this was true for disabled vets.

You disagreed with my statement that not every veteran has to pay. Flat out disagreed with it. You didn't make ANY kind of qualifying statement with your disagreement. So, if you knew that there ARE exemptions, why would you disagree with me when I said there are?

iVillage Member
Registered: 03-26-2003
Sun, 02-15-2004 - 7:48pm
but WHY there are exemptions isn't relevant to the fact that exemptions exist. Your claims otherwise don't make it true.
iVillage Member
Registered: 03-26-2003
Sun, 02-15-2004 - 7:57pm
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Because I've spoken of this fact many many times on this specific board over the years, as his co-ownership was part of the agreement he and I worked out together regarding child support and splitting assets when he and I broke up.

and if something wasn't clear to you, you could have simply asked, rather than denying that the exemption exists--particularly given your assertion that you 'don't know much" about VA Loans..

iVillage Member
Registered: 03-26-2003
Sun, 02-15-2004 - 8:37pm
Where did I ever post that an exemption does not exist? I never said anything at all about whether or not there were exemptions.

Just becuase you have mentioned that you co-owned the condo in the past does not mean that it is common knowledge to every one.

Avatar for lucy4980
iVillage Member
Registered: 03-26-2003
Sun, 02-15-2004 - 8:47pm
I guess it depends on the size of the morgage. 2-3% on a $250K loan is sizable IMO.
iVillage Member
Registered: 03-26-2003
Sun, 02-15-2004 - 9:56pm
It's considerably smaller than the 10% downpayment PLUS closing costs associated with a conventional loan, and the same amount as the 3% one would pay for a FNMA loan.

it may be sizeable, but it's about an inexpensive a deal as you'll find. Are there others less expensive? Not really, unless you start getting into less conventional financing like combining a lease-option with owner financing once the option is exercised.

iVillage Member
Registered: 03-26-2003
Sun, 02-15-2004 - 10:01pm
I didn't say everyone knew it; I said I've posted about it frequently, answering your question "how would anyone on this board know..." question. That's how they would know; because I've posted about it frequently. Woudl EVERYONE know? Probably not. But *anyone* might because I've spoken of it frequently.

And when you insist I left out a "very important part of the debate" because I didn't explain WHY there's an exemption, you are absolutely inferring that there was no reason for you to believe I was being truthful (i.e., lying about the existence of exemptions.) You can't have it both ways. If it's important to explain WHY there's an exemption, you can't similarly claim you ever failed to believe they existed.