A friend of mine is an ex-navy officer who qualifies for a VA loan.
He wants to buy a condo in another state for about $300,000, in which he will probably live until he retires.
He’s never used his VA loan before. He can afford a conventional loan and the 20% down payment.
Should he hold on to his cash and go with a VA loan and the minimum down payment? Or should he just get a conventional loan?
Saving his cash might be the best way to go in case there’s a great deal on a investment that comes along later.
Anybody here with experience/feedback on a VA loan? (I’ve only read about VA loans but since I’m not a veteran, I have no idea what benefits they provide other than low-down and assumability).
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Edit. Features of VA loans:
* Assumable with underwriting approval.
* Low down payment with funding fee:
None – 2.15%
5% or more (up to 10%) – 1.50%
10% or more – 1.25%
All things being equal I say go VA, put down 5% to get a slightly lower funding fee, and save cash to preserve liquidity … PROVIDED the unit is in very good shape and can pass VA inspection, the complex itself is VA approved, and the local sellers/agents aren’t strongly biased against VA.
The VA regs can be a bit onerous and paternalistic, which just reflects the irony of the military as the ultimate paternalistic welfare state.
All things being equal I say go VA, put down 5% to get a slightly lower funding fee, and save cash to preserve liquidity … PROVIDED the unit is in very good shape and can pass VA inspection, the complex itself is VA approved, and the local sellers/agents aren’t strongly biased against VA.
The VA regs can be a bit onerous and paternalistic, which just reflects the irony of the military as the ultimate paternalistic welfare state.
All things being equal I say go VA, put down 5% to get a slightly lower funding fee, and save cash to preserve liquidity … PROVIDED the unit is in very good shape and can pass VA inspection, the complex itself is VA approved, and the local sellers/agents aren’t strongly biased against VA.
The VA regs can be a bit onerous and paternalistic, which just reflects the irony of the military as the ultimate paternalistic welfare state.
All things being equal I say go VA, put down 5% to get a slightly lower funding fee, and save cash to preserve liquidity … PROVIDED the unit is in very good shape and can pass VA inspection, the complex itself is VA approved, and the local sellers/agents aren’t strongly biased against VA.
The VA regs can be a bit onerous and paternalistic, which just reflects the irony of the military as the ultimate paternalistic welfare state.
All things being equal I say go VA, put down 5% to get a slightly lower funding fee, and save cash to preserve liquidity … PROVIDED the unit is in very good shape and can pass VA inspection, the complex itself is VA approved, and the local sellers/agents aren’t strongly biased against VA.
The VA regs can be a bit onerous and paternalistic, which just reflects the irony of the military as the ultimate paternalistic welfare state.
