Posted on Dec 18, 2013

Are VA Loans good or bad--why?

PO3 Matt Schmidt

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Their is a negative stigma attached to VA loans and I am not sure it is deserved. What do you think?

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Posted >1 y ago

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1LT (Join to see)

Posted >1 y ago

I am a Federal and State of Florida licensed mortgage loan originator. I have worked as a mortgage lender for nearly twenty years. There are a lot of lenders and real estate professionals who are not familiar with VA mortgages and the VA loan process.

There was a time VA appraisals were scrutinized more intently than Conventional, FHA, and USDA appraisals; now all appraisals are scrutinized. Conventional and FHA appraisals are often conditioned by the underwriters or investor overlays requiring the completion of a review appraisal which is having another certified appraiser reviewing the current appraisal to make sure it was done appropriately. A VA appraisal will require repairs done by someone other than the Veteran.

The mortgage application and processing for the mortgage is very similar to the other types of mortgages except VA has a number of additional forms. We have two VA underwriters on our staff and the conditions on VA loan are not substantially different than those on the other types of loans.

VA loans do require a termite report; a prudent buyer and their professional real estate professionals should have a termite report done regardless with type of loan.

Finally, it is part of my job to educate the Veteran and the real estate professional(both listing and selling brokers) about the VA loan process and establishing realistic time frames and expectations.

James T. Iooss

First Lieutenant

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SFC William Swartz Jr

Posted >1 y ago

Technically it is not an actual loan you are getting from the VA; it is guarantee to the lender that the VA backs the loan, and in almost all cases that I know of, with that backing you do not have to put anything down. We used it to purchase a home when I was stationed at Ft. Knox and was a great tool to allow us to be able to get a pretty good loan and mortgage rate on the loan itself. I have never heard or witnessed any negative perceptions or stigma due to utilizing this tool.

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LTC (Join to see)

Posted >1 y ago

I'm not familiar with a negative stigma to VA loans.  Can you explain?<div><br></div><div>As to whether they're good or bad, it depends on your situation.  We purchased a house at one assignment where the VA loan was not the best option for us and we instead used another loan option.  At a different location, under different circumstances, however, the VA loan was the best option, bar none! </div><div><br></div><div>Anyone taking on a mortgage should do a substantial amount of homework as to various loan options and find a mortgage officer they trust.  Discuss the ins and outs of all the options with the mortgage officer and then choose the one that makes the most sense for your situation.  Don't just take their word for it and don't be afraid to ask for details to aspects of the mortgage you don't understand.</div>

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PO3 Matt Schmidt

>1 y

The negative stigma is on the 'sellers'' end. When an offer is written and a listing agent sees that the offer will be financed with a VA loan, it is not uncommon for that offer to be 'thrown out'. There are misconceptions in the real estate world about the cost to the seller if accepting a VA offer.

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Maj (Join to see)

10 y

LTC Bruhl, you hit the nail on the head. Every location, every market, every house and every situation is different. Some of the challenges with VA Financing in competitive seller markets is that they have property requirements versus conventional financing does not. In addition, there are A LOT of real estate agents that don't understand the VA Loan. Working with a good Veteran Realtor or certified Military Relocation Professional that can be an advocate is important as well. This way you have a person that can educate the listing agent and seller about the advantages of working with a Veteran. MRP have materials that highlight these benefits!

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Are VA Loans good or bad--why?

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