VA Loan or Conventional Loan?

[briansd1]

Thanks. I was thinking the same thing.

I was wondering if the interest rates and the points on a 5%-down VA loan would be the same as the costs on a 20%-down conventional loan.

[bearishgurl]

[quote=briansd1] . . . I was wondering if the interest rates and the points on a 5%-down VA loan would be the same as the costs on a 20%-down conventional loan.[/quote]

The VA funding fee makes the closing costs higher than a conventional loan. Don’t know what the current funding fee is. Perhaps it can now be wrapped into the loan, which could render the buyer “underwater” at the time of purchase if they put little to nothing down. If you try to pass the FF onto the seller, they my balk. And, not sure if VA loan rates are better than conventional rates or if there are currently points attached to the rate.

Sellers don’t usually like the VA program because they are usually asked to kick in some or all of the closing costs in it.

[bearishgurl]

[quote=briansd1] . . . I was wondering if the interest rates and the points on a 5%-down VA loan would be the same as the costs on a 20%-down conventional loan.[/quote]

The VA funding fee makes the closing costs higher than a conventional loan. Don’t know what the current funding fee is. Perhaps it can now be wrapped into the loan, which could render the buyer “underwater” at the time of purchase if they put little to nothing down. If you try to pass the FF onto the seller, they my balk. And, not sure if VA loan rates are better than conventional rates or if there are currently points attached to the rate.

Sellers don’t usually like the VA program because they are usually asked to kick in some or all of the closing costs in it.

[bearishgurl]

[quote=briansd1] . . . I was wondering if the interest rates and the points on a 5%-down VA loan would be the same as the costs on a 20%-down conventional loan.[/quote]

The VA funding fee makes the closing costs higher than a conventional loan. Don’t know what the current funding fee is. Perhaps it can now be wrapped into the loan, which could render the buyer “underwater” at the time of purchase if they put little to nothing down. If you try to pass the FF onto the seller, they my balk. And, not sure if VA loan rates are better than conventional rates or if there are currently points attached to the rate.

Sellers don’t usually like the VA program because they are usually asked to kick in some or all of the closing costs in it.

[bearishgurl]

[quote=briansd1] . . . I was wondering if the interest rates and the points on a 5%-down VA loan would be the same as the costs on a 20%-down conventional loan.[/quote]

The VA funding fee makes the closing costs higher than a conventional loan. Don’t know what the current funding fee is. Perhaps it can now be wrapped into the loan, which could render the buyer “underwater” at the time of purchase if they put little to nothing down. If you try to pass the FF onto the seller, they my balk. And, not sure if VA loan rates are better than conventional rates or if there are currently points attached to the rate.

Sellers don’t usually like the VA program because they are usually asked to kick in some or all of the closing costs in it.

[bearishgurl]

[quote=briansd1] . . . I was wondering if the interest rates and the points on a 5%-down VA loan would be the same as the costs on a 20%-down conventional loan.[/quote]

The VA funding fee makes the closing costs higher than a conventional loan. Don’t know what the current funding fee is. Perhaps it can now be wrapped into the loan, which could render the buyer “underwater” at the time of purchase if they put little to nothing down. If you try to pass the FF onto the seller, they my balk. And, not sure if VA loan rates are better than conventional rates or if there are currently points attached to the rate.

Sellers don’t usually like the VA program because they are usually asked to kick in some or all of the closing costs in it.

[briansd1]

I looked up the funding fee levels for the various downpayment levels.

None – 2.15%
5% or more (up to 10%) – 1.50%
10% or more – 1.25%

http://www.benefits.va.gov/homeloans/lp.asp

http://www.benefits.va.gov/homeloans/docs/funding_fee_tables.doc

I guess the next thing would be to compare the VA loan vs. the conventional loan

* Interest rates
* Points/funding fees

Is it your experience that VA loans generally have lower interest rates?

I would think that San Diego, being a military town, would have many veterans buying using VA loans.

[briansd1]

I looked up the funding fee levels for the various downpayment levels.

None – 2.15%
5% or more (up to 10%) – 1.50%
10% or more – 1.25%

http://www.benefits.va.gov/homeloans/lp.asp

http://www.benefits.va.gov/homeloans/docs/funding_fee_tables.doc

I guess the next thing would be to compare the VA loan vs. the conventional loan

* Interest rates
* Points/funding fees

Is it your experience that VA loans generally have lower interest rates?

I would think that San Diego, being a military town, would have many veterans buying using VA loans.

[briansd1]

I looked up the funding fee levels for the various downpayment levels.

None – 2.15%
5% or more (up to 10%) – 1.50%
10% or more – 1.25%

http://www.benefits.va.gov/homeloans/lp.asp

http://www.benefits.va.gov/homeloans/docs/funding_fee_tables.doc

I guess the next thing would be to compare the VA loan vs. the conventional loan

* Interest rates
* Points/funding fees

Is it your experience that VA loans generally have lower interest rates?

I would think that San Diego, being a military town, would have many veterans buying using VA loans.

[briansd1]

I looked up the funding fee levels for the various downpayment levels.

None – 2.15%
5% or more (up to 10%) – 1.50%
10% or more – 1.25%

http://www.benefits.va.gov/homeloans/lp.asp

http://www.benefits.va.gov/homeloans/docs/funding_fee_tables.doc

I guess the next thing would be to compare the VA loan vs. the conventional loan

* Interest rates
* Points/funding fees

Is it your experience that VA loans generally have lower interest rates?

I would think that San Diego, being a military town, would have many veterans buying using VA loans.

[briansd1]

I looked up the funding fee levels for the various downpayment levels.

None – 2.15%
5% or more (up to 10%) – 1.50%
10% or more – 1.25%

http://www.benefits.va.gov/homeloans/lp.asp

http://www.benefits.va.gov/homeloans/docs/funding_fee_tables.doc

I guess the next thing would be to compare the VA loan vs. the conventional loan

* Interest rates
* Points/funding fees

Is it your experience that VA loans generally have lower interest rates?

I would think that San Diego, being a military town, would have many veterans buying using VA loans.

[moneymaker]

When I was looking at it as a possibility seems to me that the interest rates on VA loans were almost always higher particularly when rates are going down. The VA rate is determined by bonds sold by the state and they will sometimes sellout and not be available for a month or so. Actually I guess I’m thinking of the CALVET loans. Anyway I personally decided to go conventional and now with rates even lower maybe if I started with a higher rate I would be refi’ing right now. Like the market it might just be a crap shoot!

[moneymaker]

When I was looking at it as a possibility seems to me that the interest rates on VA loans were almost always higher particularly when rates are going down. The VA rate is determined by bonds sold by the state and they will sometimes sellout and not be available for a month or so. Actually I guess I’m thinking of the CALVET loans. Anyway I personally decided to go conventional and now with rates even lower maybe if I started with a higher rate I would be refi’ing right now. Like the market it might just be a crap shoot!

[moneymaker]

When I was looking at it as a possibility seems to me that the interest rates on VA loans were almost always higher particularly when rates are going down. The VA rate is determined by bonds sold by the state and they will sometimes sellout and not be available for a month or so. Actually I guess I’m thinking of the CALVET loans. Anyway I personally decided to go conventional and now with rates even lower maybe if I started with a higher rate I would be refi’ing right now. Like the market it might just be a crap shoot!

[moneymaker]

When I was looking at it as a possibility seems to me that the interest rates on VA loans were almost always higher particularly when rates are going down. The VA rate is determined by bonds sold by the state and they will sometimes sellout and not be available for a month or so. Actually I guess I’m thinking of the CALVET loans. Anyway I personally decided to go conventional and now with rates even lower maybe if I started with a higher rate I would be refi’ing right now. Like the market it might just be a crap shoot!

[Author]

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