FHA vs VA home loans?
Written By: admin on January 16, 2010
One Comment
My husband and I have been pre-approved for an fha home loan. But, we qualify for the va home loan also. Our mortgage broker told us that we would have a much more hard time trying to buy a home with our VA loan over the fha… why is this? Shouldn’t it make sense that since my husband is a veteran we would should be able to use his veteran benefits?
The down payment and/or closing costs are not a huge deal, but still, it would be nice if we didn’t have to pay them with VA loan.
Thanks everyone!
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Tags: closing costs, fha home loan, fha home loans, mortgage broker, veteran benefitsTags: closing costs, fha home loan, mortgage broker, veteran benefits
The only reasons I can reckon of why your broker would tell you this.
1) VA has a disposable income requirement and maybe you don’t meet it.
2) Your broker is not approved to offer VA loans.
3) Your broker will make more yield spread premium by giving you an FHA instead of a VA loan.
4) VA does limit the amount of closing costs that the seller can pay ( 4% on VA vs 6% on an FHA loan ) and also WHAT the Veteran is charged for.
The VA loan is the better option for a couple of reasons.
1) No money down required
2) No monthly mortgage insurance.