Anyone closed a VA mortgage lately?

We looked into using SWMBO's VA mortgage benefit about 8 years ago, but at that time conventional financing appeared to be the greater value(although we didn't end up moving at that time). However now it offers several benefits over a conventional 30-year fixed mortgage, so we chose it for the house we're buying. For example, the rate seems to meet the current market rates, yet there's no requirement for a down payment, there's no PMI regardless of amount down, and since SWMBO is disabled(the culmination of several minor service-connected issues that developed into chronic health problems over the years) the loan fees are waived.

The realtor has stated that the VA backed mortgages are a real PITA to close, with a variety of requests needing fulfilled, sometimes right up to closing. Yet our lender indicated there are no worries, and as long as the house passes inspection we'll be fine. I went through the FHA inspection process back in '03, but again our realtor states the VA requirements are even more stringent. So I'm looking for anyone who's used this program over the last year or so, and how that experience was for you?

my father did a little over a year ago.. they are a PITA.. but well worth it. They have some quite stringent requirements.. the house needs to be one you can more or less move right in (no fixer-uppers) and it cannot be a mobile home or a prefab... there are more, but those are the two I know off hand

Uhhh, I've only bought one house, but here is what I learned.

1. The realtor doesn't necessarily know more than you do.
2. Closing a normal loan through us bank was a giant PITA.

I say go for the va loan. Sounds like a great program and is right for you. Remember that the realtor works for and is paid by you. Take their feedback, but don't let them push you around.

My sister works for a office that handles all kinds of property sales including international sales and even she says the VA is a PIA. Hope you are not in a hurry.

Paul

I did my second VA loan in May, and still have the first too. The requirements for VA are pretty much the same as the FHA except that they have certain inspectors they use and it's usually 4-6 weeks for an appointment.

For immediate improvements like insulation, windows, and more efficient HVAC you can finance an additional up to $6k over the sale price of the home into the mortgage. We used that to add new windows to the first place.

I gave up on the VA loan and went conventional. Might be easier with a new home, but with an old one, it was basically impossible to satisfy their requirements.

Ok, that pretty much is the impression I have too. The house appears to be up to spec - built in 1961, slab construction w/o any visible cracks/damage/settling, updated electric and plumbing, newer roof, etc. It's definitely move-in ready, so I guess we'll ride it out and see how it goes.

We are building a new home right now, and the VA process is quite easy for new construction. Obviously, because every step in the construction has to get signed off by the city code inspector before the contractor can progress to the next step.

For a recent home or one in very good condition, its probably not much of a problem. My daughter and her husband bought a 100+ year old house in WV through a VA loan, that probably should not have closed. It should never have passed the inspection. I HAD to be painted due to peeking paint. So, guess who went up and helped paint a huge two story house that they didn't own yet?

I can't speak for a VA loan, but if you're a veteran take your DD-214 to the local office and talk about an exemption.

I didn't pay property taxes for the first 10 years I owned my house.

Dan

914Driver wrote: I can't speak for a VA loan, but if you're a veteran take your DD-214 to the local office and talk about an exemption. I didn't pay property taxes for the first 10 years I owned my house. Dan

I've never heard of this!!! Now I have something to investigate that would be a legitimate benefit for having lived in a sandbox fo months on end.

To the OP, I've used the VHA for my mortgage multiple times (4-5?) and the PITA factor really isn't that big a deal and really not anything you have to deal with beyond ensuring the home meets a few basic standards. The big items were no peeling paint and no broken glass. I spent a few hours working on my place before the closing just to keep them happy but it really wasn't a big deal. The big reason is that they don't want vets buying "fixer-uppers" and not fixing them up.

The lender/broker makes money doing the loan and it's their job to put everything together. Really the realtor has very little to do with that so let them pocket their 3% for having shown you the place and they can just step aside.

In reply to 914Driver:

Interesting. SWMBO is the veteran of the family, I looked on the local county tax website down there & they mention an extra credit for disability. While she has a 100% VA disability rating, she has no SSI rating - I'm not sure if she would qualify & TBQH I don't think she's interested in attempting at this point as long as she's still working. But I'll definitely ask about their program!

As the buyer, a VA loan is awesome I bet. As a seller I can tell you it sucks and I will never sell another house to a VA loan.

Way too many hoops to jump through, the house has to pretty much be in perfect shape or you as the seller will have to pay for it to be fixed. This is how stupid it was. We had to have (either pay or do it ourselves) the slight green mildew that grows on the north side of houses cleaned off before they would accept the houses condition even though it didn't affect the real condition of the house (vinyl siding). It was just a bunch of little bullspit like that. We almost just said eff it to the offer.

That's all I have to add to this even though it's not an answer to your question.. sorry.

I universally decline VA loans even at asking price. Simply not worth the trouble out here in California. It is just a cluster of unimaginable suffering and fee's that for some reason I have to pay for.

Here's some of what the VA says about property condition. The VA does take a protective bias with regard to the eligible veteran, but they are also being asked to guaranty a loan for 100% of the estimated value. A structural or hazardous defect significantly diminishes the value of that collateral.

That said, sometimes appraisers go too far and it is up to the underwriter to shorten the chain.

<< Former VA LAPP Underwriter

Hazards

• termites.

Granted, it's been a while but I used VA both times I bought a house. The first was a new construction and I was still active duty. Other than time it wasn't a hassle for me, can't say about the mortgage company though. Sold that house to someone using VA and the only hassle I had to deal with should have been dealt by me with beforehand (if I'd known about them that is) but easy fixes to bring up to standard. Second was a used house and just as bludroptop mentioned had to be complied with. Owner had to add a railing to stairs w/5 steps and back door (double door) had to be replaced. I paid half of that because I wanted a metal door that wouldn't repeat the damage. Seller complained about having to meet requirements but complied in order to sell the house. Again, don't know what kind of PIA for the bank but wasn't any for me other than time and since I have no experience with a standard loan I can't say about the time wait. Most realtors and bankers I've talked with say the only hassle with VA is older houses have to be brought up to current safety standards. Which most of us would want anyway.

petegossett wrote: Interesting. SWMBO is the veteran of the family, I looked on the local county tax website down there & they mention an extra credit for disability.

I understand it varies county to county, not state to state or even (imagine this) one size fits all Gubbyment.

Doesn't cost anything to ask.

BTW: Purple Heart recipients never pay school taxes, ever.

Dan

In reply to wlkelley3:

That sounds exactly what I went through with our old house and FHA. The seller had to add a railing to the 2nd story, and one going into the basement. There were several other issues along those lines too.

In reply to 914Driver:

Never knew that about Purple Heart recipients, but that's awesome!

My father has been 100% disabled since 1975. He never pays property taxes here in NJ

When I bought my house I told my mother about the tax deal: "Those recruiters should be out there telling these kids that!"

Yeah, 17 year olds are sleepless about a big purchase decades down the road .....