VA Loan or Conventional Loan?

[sdrealtor]

FYI depending upon the market sellers and agents may not be willing to work with a VA buyer. Around here it is very difficult to get a VA offer accepted particularly on a short sale which is so prevalent. Dont know where your friend is looking but that is defintely a consideration.

[briansd1]

Looks like my friend is locked on a 3.75% VA loan, 30-year fixed. I will post the details when he closes in December.

Total out of pocket will be near $10,000 including the funding fee.

I’m not a big fan of buying just for homeownership’s sake, but in this case, buying is clearly better than renting.

[briansd1]

Looks like my friend is locked on a 3.75% VA loan, 30-year fixed. I will post the details when he closes in December.

Total out of pocket will be near $10,000 including the funding fee.

I’m not a big fan of buying just for homeownership’s sake, but in this case, buying is clearly better than renting.

[briansd1]

Looks like my friend is locked on a 3.75% VA loan, 30-year fixed. I will post the details when he closes in December.

Total out of pocket will be near $10,000 including the funding fee.

I’m not a big fan of buying just for homeownership’s sake, but in this case, buying is clearly better than renting.

[briansd1]

Looks like my friend is locked on a 3.75% VA loan, 30-year fixed. I will post the details when he closes in December.

Total out of pocket will be near $10,000 including the funding fee.

I’m not a big fan of buying just for homeownership’s sake, but in this case, buying is clearly better than renting.

[briansd1]

Looks like my friend is locked on a 3.75% VA loan, 30-year fixed. I will post the details when he closes in December.

Total out of pocket will be near $10,000 including the funding fee.

I’m not a big fan of buying just for homeownership’s sake, but in this case, buying is clearly better than renting.

[AK]

Your friend is lucky — that absurdly low rate was probably available for about three weeks! I know because I actually looked into refinancing after less than a year on my purchase loan.

[AK]

Your friend is lucky — that absurdly low rate was probably available for about three weeks! I know because I actually looked into refinancing after less than a year on my purchase loan.

[AK]

Your friend is lucky — that absurdly low rate was probably available for about three weeks! I know because I actually looked into refinancing after less than a year on my purchase loan.

[AK]

Your friend is lucky — that absurdly low rate was probably available for about three weeks! I know because I actually looked into refinancing after less than a year on my purchase loan.

[AK]

Your friend is lucky — that absurdly low rate was probably available for about three weeks! I know because I actually looked into refinancing after less than a year on my purchase loan.

[briansd1]

Ok, so my friend closed on his house. Less than 30 escrow. I didn’t want to post earlier until the deal was done.

3.75% is a killer deal. Rates have since moved to up to about 4.25% on a VA loan.

He got the loan in Philadelphia from http://www.phfa.org
They apparently originate loans through brokers but keep the loans in their portfolio and do the servicing.

He had checked with USAA also but they were way more. The fee and interest rate were not even competitive.

For zero percent down, the upfront premium was about $5,500 or 2.15% which was added to the loan. I think those are the points to the broker.

Here are the VA guidelines for down payments and funding fees:
None – 2.15%
5% or more (up to 10%) – 1.50%
10% or more – 1.25%

—-
Out of pocket closing costs were about $9,500 including:

Transfer taxes of 2% $5,100
The transfer taxes in PA are very high at 4%. Seller and buyer pay 1/2.

Title Services and Title Insurance $1,900

Taxes, Recording, Homeowner’s Insurance and Misc. $2,500
—–

This worked to to be a great deal for a brand new house about $255,000 in an average neighborhood (something like North Park or Normal Height, I suppose, if we could even compare) of the city about 1.2 miles from City Hall, with parking. Same house next door listed in late 2008 and closed in early 2009 for $300,000.

$1,200 monthly mortgage payments and $450 annual property taxes (10-year tax abatement on new house), no PMI. Comparable rent is $2,000.

Anybody who is a veteran should look at buy vs. rent, maybe not in San Diego but in cheaper locales.

In the winter of 2011, prices might be down from 2010 with rates slightly higher. If you qualify for zero down on a VA loan, that might be the opportunity to buy at the bottom (which I think will be spread out, up and down, over a couple years, depending on the area)

[briansd1]

Ok, so my friend closed on his house. Less than 30 escrow. I didn’t want to post earlier until the deal was done.

3.75% is a killer deal. Rates have since moved to up to about 4.25% on a VA loan.

He got the loan in Philadelphia from http://www.phfa.org
They apparently originate loans through brokers but keep the loans in their portfolio and do the servicing.

He had checked with USAA also but they were way more. The fee and interest rate were not even competitive.

For zero percent down, the upfront premium was about $5,500 or 2.15% which was added to the loan. I think those are the points to the broker.

Here are the VA guidelines for down payments and funding fees:
None – 2.15%
5% or more (up to 10%) – 1.50%
10% or more – 1.25%

—-
Out of pocket closing costs were about $9,500 including:

Transfer taxes of 2% $5,100
The transfer taxes in PA are very high at 4%. Seller and buyer pay 1/2.

Title Services and Title Insurance $1,900

Taxes, Recording, Homeowner’s Insurance and Misc. $2,500
—–

This worked to to be a great deal for a brand new house about $255,000 in an average neighborhood (something like North Park or Normal Height, I suppose, if we could even compare) of the city about 1.2 miles from City Hall, with parking. Same house next door listed in late 2008 and closed in early 2009 for $300,000.

$1,200 monthly mortgage payments and $450 annual property taxes (10-year tax abatement on new house), no PMI. Comparable rent is $2,000.

Anybody who is a veteran should look at buy vs. rent, maybe not in San Diego but in cheaper locales.

In the winter of 2011, prices might be down from 2010 with rates slightly higher. If you qualify for zero down on a VA loan, that might be the opportunity to buy at the bottom (which I think will be spread out, up and down, over a couple years, depending on the area)

[briansd1]

Ok, so my friend closed on his house. Less than 30 escrow. I didn’t want to post earlier until the deal was done.

3.75% is a killer deal. Rates have since moved to up to about 4.25% on a VA loan.

He got the loan in Philadelphia from http://www.phfa.org
They apparently originate loans through brokers but keep the loans in their portfolio and do the servicing.

He had checked with USAA also but they were way more. The fee and interest rate were not even competitive.

For zero percent down, the upfront premium was about $5,500 or 2.15% which was added to the loan. I think those are the points to the broker.

Here are the VA guidelines for down payments and funding fees:
None – 2.15%
5% or more (up to 10%) – 1.50%
10% or more – 1.25%

—-
Out of pocket closing costs were about $9,500 including:

Transfer taxes of 2% $5,100
The transfer taxes in PA are very high at 4%. Seller and buyer pay 1/2.

Title Services and Title Insurance $1,900

Taxes, Recording, Homeowner’s Insurance and Misc. $2,500
—–

This worked to to be a great deal for a brand new house about $255,000 in an average neighborhood (something like North Park or Normal Height, I suppose, if we could even compare) of the city about 1.2 miles from City Hall, with parking. Same house next door listed in late 2008 and closed in early 2009 for $300,000.

$1,200 monthly mortgage payments and $450 annual property taxes (10-year tax abatement on new house), no PMI. Comparable rent is $2,000.

Anybody who is a veteran should look at buy vs. rent, maybe not in San Diego but in cheaper locales.

In the winter of 2011, prices might be down from 2010 with rates slightly higher. If you qualify for zero down on a VA loan, that might be the opportunity to buy at the bottom (which I think will be spread out, up and down, over a couple years, depending on the area)

[briansd1]

Ok, so my friend closed on his house. Less than 30 escrow. I didn’t want to post earlier until the deal was done.

3.75% is a killer deal. Rates have since moved to up to about 4.25% on a VA loan.

He got the loan in Philadelphia from http://www.phfa.org
They apparently originate loans through brokers but keep the loans in their portfolio and do the servicing.

He had checked with USAA also but they were way more. The fee and interest rate were not even competitive.

For zero percent down, the upfront premium was about $5,500 or 2.15% which was added to the loan. I think those are the points to the broker.

Here are the VA guidelines for down payments and funding fees:
None – 2.15%
5% or more (up to 10%) – 1.50%
10% or more – 1.25%

—-
Out of pocket closing costs were about $9,500 including:

Transfer taxes of 2% $5,100
The transfer taxes in PA are very high at 4%. Seller and buyer pay 1/2.

Title Services and Title Insurance $1,900

Taxes, Recording, Homeowner’s Insurance and Misc. $2,500
—–

This worked to to be a great deal for a brand new house about $255,000 in an average neighborhood (something like North Park or Normal Height, I suppose, if we could even compare) of the city about 1.2 miles from City Hall, with parking. Same house next door listed in late 2008 and closed in early 2009 for $300,000.

$1,200 monthly mortgage payments and $450 annual property taxes (10-year tax abatement on new house), no PMI. Comparable rent is $2,000.

Anybody who is a veteran should look at buy vs. rent, maybe not in San Diego but in cheaper locales.

In the winter of 2011, prices might be down from 2010 with rates slightly higher. If you qualify for zero down on a VA loan, that might be the opportunity to buy at the bottom (which I think will be spread out, up and down, over a couple years, depending on the area)

[Author]

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