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How to choose between VA, FHA and Conventional mortgage?

Apparently, I qualify for each of these according to my loan officer. If I have saved up enough money for a conventional down payment, is this the best option in the long run? by nicholassmith from Kalamazoo, Michigan. Apr 24th 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

the only one who can answer that question is you.. FHA is great if you don't have much for a down payment, however if you qualify for VA financing then VA would be best since you don't have to put anything down, and you don't have to pay mortgage insurance.. if your a disabled vet, then you wont even pay the VA funding fee.. Your lender might discourage you from going VA since the time necessary to close would be extended.. currently it's taking nearly 3 weeks to get a VA appraisal, so keep that in consideration when you estimate your closing date.. Conventional financing is good if you have plenty of cash and wish to apply it to a home, however most financial advisors will tell you that's not the best use of your money.. CASH IS KING!!! the more you can keep in the bank, the better.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Apr 24th 2013
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Mike Silkworth (msilkw_195_870)
#1 ranked lender in Michigan - 530 contributions

Great Question Nicholas. The answer is likely yes. It get's even better - there are options within the conventional loan that can be structured to allow you to achieve your goals including monthly payment, cash to close and the long term, real cost of the money expressed in terms of APR or Annual Percentage Rate. If you would like to see your options stacked next to one another, give me a call at 517-489-2328. I am in East Lansing. = Mike Silkworth

Apr 24th 2013
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Thomas Worsfold (TomWorsfold)
#48 ranked lender in Michigan - 7 contributions

Nicholas,My advice would be to choose between VA and Conventional. Is your conventional down-payment a full 20%, or something less? If it is not 20%, you have to take into account how much the mortgage insurance will be. Also, you can typically get a better interest rate with more yield spread (lender credits) on a VA loan, however, the VA has a potentially large funding fee. So the analysis is how long would it take to have smaller payments with a VA loan compared to Conventional to break even on the funding fee?Although my office is in Wisconsin, I am licensed in Michigan, and I actually grew up in Grand Rapids with two WMU alum in my family. I would love the opportunity to speak with you on the phone to share some more information. As my company's name might suggest, we are excellent with VA loans.I hope to be able to touch base with you. (920-731-3175)

Apr 24th 2013
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Korene Clopine-Seaman (korene)
#68 ranked lender in Arizona - 90 contributions

Very Interesting Question Nicholas. The answer is MAYBE, DEPENDS, Let's look at the other aspects of your finances. These aspects include but are not limited to....(1) savings, (2) other debt, (3) upcoming family events or potential needs, comparison of costs today compared to time expectation in property, and other more standard questions - there are options within the conventional loan that can be structured to allow you to achieve your goals including monthly payment, cash to close and the long term, real cost of the money expressed in terms of APR or Annual Percentage Rate. I am a Mortgage Banker in metro Phoenix, AZ. I lend in both Arizona and California where I will be pleased to help you. If you or someone you know is looking for financing options, please feel free to contact me or pass along my information. 623-340-0934 Korene Clopine-Seaman NMLS # 218520 KLCSLoanTeam.com We are Direct Lenders, WE CLOSE LOANS!

Apr 24th 2013
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Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,318 contributions

20% down conventional is your best choice.

Apr 24th 2013
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Jerry Potter (JerryPotter)
#81 ranked lender in Washington - 37 contributions

If thinking of putting off purchasing a home right now because you'd like to save for a down payment to go conventional, I would opt for utilizing your VA benefits and go zero down. If you qualify for VA my man...you earned it! And, especially if this is your first usage of your VA mortgage benefit, your funding fee will be least expensive than the next VA refi or purchase using your VA. Remember, VA has no monthly mortgage insurance. Rates are low!

Apr 24th 2013
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Jeff Albrecht (Doctor_Mortgage)
#94 ranked lender in Texas - 77 contributions

Nicholas: There are Pros and Cons with each of these loan programs. The VA debt to income ratio % will get you a little more home, and if with NO mortgage insurance, a lot of people like that - since they are able to pay off credit cards with that 20% down payment, or fix up the new house that you are buying. As Mortgage Professionals - we strive to LISTEN to what YOU tell us, then we have a dialogue with you, discussing thru each of these loan programs, and then make our recommendation for the "Right Loan, for the Right Person, at the Right time in their Life." Click on my profile to the left, and drop me an email. I look forward to working with you. Thanks in advance.....Jeff

Apr 24th 2013
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Peter Savino (855411LEND)
#100 ranked lender in New Jersey - 332 contributions

Some great answers have been posted here.

Apr 24th 2013
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Carlos Figueira (carlosfigueira)
#108 ranked lender in New Jersey - 199 contributions

Conv. as there is no monthly mortgage insurance with the 20% down and no VA funding fee. Good Luck

Apr 24th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,244 contributions

It's a very simple process. Conventional is usually your best option. That being said you should look at all the payments using equal down payments. If you are putting less than 20% down than it's a no brainer go VA! You can do 100% financing going VA, 97% financing going conventional and 96.5% for FHA. Both FHA and VA charge an upfront mortgage premium which can be financed into the loan. FHA requires a monthly mortgage insurance payment, VA does not. Hope this helps! Call us or email us at 201-962-3555 or Team@BestMortgageOption.com for ano cost no obligation analysis of your situation ask for Michelle or Benny. We will find the Best Mortgage Option to suit your needs! Check us out at www.BestMortgageOption.comAsk us about the awesome discounts we offer heroes as a Homes for Heroes affiliate!

Apr 24th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,316 contributions

If you plan on putting less than 20% down, the VA loan is the ONLY way to go.... If you have 20% or more down payment, the conventional loan is a good potential option too. You need to weight the slightly higher rate on conventional versus the VA funding fee to see how they work out over the estimated time you plan on living in the home... Usually VA will still win. IN MN or WI, visit www.VA-IRRRL-Loan-MN.com

Apr 25th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 314 contributions

Conventional is the best. Less Fees

Apr 25th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

Generally speaking the conventional loan will be the best long term solution for you unleass your credit scoresare not great or you have a small amount of money for your down payment.

Apr 25th 2013
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Jason Vondrak (jvondrak)
#221 ranked lender in California - 1,741 contributions

While you will have to ultimately determine which loan program is right for you, you can check out this article, which outlines the differences between the programs: http://www.prospectrefinance.com/conventional-va-or-fha/

Apr 25th 2013
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Joshua Nawrot (jnawro_497_179)
#51 ranked lender in Michigan - 10 contributions

You call Josh (VP of Lending) with Northern Mortgage.I will walk you though all the options. :)P: 616-581-0540

Apr 24th 2013
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