[quote=bearishgurl]HLS, I’d be interested to know what the closing costs will be on the *new* mortgage loan you described in the OP :=0[/quote]
There is a pricing factor to compensate for the risk, so there is a choice with this loan AND VA to choose a rate
that has a rebate that will cover all the closing costs.
It’s simply risk based.
VA funding fee is not the same for every veteran.
The 2% fee does not have to be paid by seller nor paid in cash by the buyer, above market rate can cover it all.
According to the media, it’s hard to qualify for a loan.
This is utter nonsense. In some ways it’s easier than ever, especially for people who can barely afford to buy a house, as long as they qualify for the program.
easiest for W2 Salaried employees.
Harder for self employed, contract workers, and those who need commission, bonus or overtime pay to qualify.
Regardless of credit scores.
$1 million dollars in the bank makes it no easier to qualify for a conventional loan. Verified monthly income & expenses ON A CREDIT REPORT matter. Lots of monthly expenses aren’t on a credit report.
I priced out a scenario and it looks like 4.00% rate covers the pricing hits and gets the 2% down payment from the lender, vs. 3.375%-3.50% with 20% down.
1% down with 4.00% 30yr rate… it’s better than nothing down and a 6.50%+ rate in 2006
