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Is there any advantages to VA vs. conventional loans? I have heard VA loans are harder to win a bidding war with.

I have excellent credit so costs are pretty similar. I am trying to decide which route to go for pre-approval. by benfoster from Saratoga, California. Apr 11th 2013 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,587 contributions

If your trying to purchase a home and using VA financing, then it could be tough.. VA appraisals are taking up to 3 weeks to complete... for that reason, your VA offer to purchase could get less consideration than if your gong FHA or conventional, since the turn time for those appraisals are inside of 5 days... Also, with VA, there are certain costs your not allowed to pay for.. If the seller knows this, then it could persuade them to accept an offer other than yours. . 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 11th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,869 contributions

I do VA loans all day long. VA loans are awesome! If you are Vet, and want to buy a house with less than 20% down, it is foolish NOT to use a VA loan. The two primary benefits are: Zero down payment option, and NO MORTGAGE INSURANCE, which can be a huge monthly savings. There is Zero reason why any seller should look at a VA offer any different than any other offer. www.VA-IRRRL-Loan-MN.com

Apr 12th 2013
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Wade Miller (wadeger)
#823 ranked lender in California - 6 contributions

VA requires Termite Work & Clearance, plus the seller must pay for extra closing costs on your behalf. The main difference is that the appraiser may call out items to be repaired, whereas Conventional it seems the appraisals come back much cleaner. If you know the condition of the property is pretty good, it shouldnt make much of a difference. The financing itself is not difficult. The benefit for you to obtain VA financing is obviously no down payment in most circumstances. If you want to discuss, please contact Wade Miller at (714) 292-4198. Thank you.

Apr 11th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

Unless your loan to value is over 80% then yes. Va loans will charge you an upfront MI premium which you can finance into the loan but no monthly MI where as a conventional loan will charge you MI monthly on any loan over 80%. Unfortunately there are some misconceptions around VA loans and they allow 100% loan to value as well where as all other loans typically require some skin in the game. Also it is believed that they take longer to close. Handled correctly most loans regardless of the type should be able to close within 30 to 45 days baring an unforeseen problems of course. So really depending on your situation it is hard to answer your question 100% without all the details.

Apr 11th 2013
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Wade Miller (wadeger)
#823 ranked lender in California - 6 contributions

The main difference I see is in the appraisal. Termite Work and Clearance are required on every home. In addition, the seller must pay for some of your closing costs that they would not be required on a Conventional loan. If you want to discuss further, please call Wade Miller at (714) 292-4198. Thank you.

Apr 11th 2013
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David Sanders (David_Sanders)
#813 ranked lender in California - 59 contributions

Good Point William... I would also like to touch on VA financing is great for someone that cannot come up with a down payment. 0% down to nice for some veterans returning from duty. However, Conventional is the way to go for a smoother process especially if you have good credit like you say. If you have money for a down payment then I would avoid the VA loan and go with a conventional loan. Have you been approved yet? Let me know, I could help you with atleast another mortgage proposal and look at your situation. David Sanders. Crossroads Funding, Inc. Lake Forest, CA.. 949-529-5521.

Apr 11th 2013
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Nelson Otero (FirstAllied)
#834 ranked lender in California - 6 contributions

Hi Ben,I pretty much agree with what Wade Miller had to say. I will add that the biggest problem here in CA now is the shear amount of offers being made on any given property. On one extreme, an all cash offer is considered the strongest offer from a seller's perspective, while a no-down payment is unfortunately considered a weaker offer - as unfair as that sounds. Having said that, we have been able to help buyers get their VA offers accepted by providing additional documents with the offer that most lenders don't. Also, appraisals are not taking too much more time here in CA than a conventional appraisal.Please call as time allows for details, Nelson Otero, First Allied Financial Services, Inc., 714-373-5700, DRE# 01167744, NMLS# 265076.

Apr 11th 2013
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Brock Amos (BrockA)
#795 ranked lender in California - 3 contributions

It really depends on your current financial situation. If you are trying to put little money down, VA would probably be your best bet. If you can put 10% down, I can do a 1st and 2nd MTG, which would save you from monthly MI on a conventional. I doubt whether or not you go VA or Conventional loan, is going to determine if you get the house or not. Most people in this market that lose out to another offer, it is either a cash offer, or a higher offer. I can get you pre-approved within 15-20. Brock Amos @ Land Home Financial, 949-235-2788.

Apr 11th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

VA is better for less than 20% down payment.

Apr 11th 2013
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Jason Wood (jasonwood)
#710 ranked lender in California - 15 contributions

There is no better loan than the VA loan. It doesn't require any down payment, does not have mortgage insurance, is assumable, and has typically lower interest rates than conventional loans. Often times 0.5% lower. It also has more flexible guidelines allowing for higher debt ratios. Having an assumable loan may also provide to be a great benefit for you if you need to sell the home in the future. If the lender structures the loan right the only fee that cannot be paid by the buyer is the pest inspection and attorney fee (if your state requires that).Getting VA offers accepted in a general sense can be harder, but team up with a VA expert that knows how to get the VA offers accepted over the conventional offers and you'll get the home you want.If you'd like to discuss with the Nation's #1 VA Dedicated Lender then please give Jason Wood at Veterans United Home Loans a call 877-411-9133. Helping veterans purchase hopes is our expertise and we know how to get those offers accepted even in a seller's market.

Apr 11th 2013
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Linda Miller (Linda Miller)
#2 ranked lender in Utah - 566 contributions

I agree with Jason Wood. The VA loan is a great loan and a benefit you have earn with your service. I don't know about California, but in Utah VA appraisal take no longer than a conventional appraisal. VA is 0% down and if you get disability (even 10%) then the funding fee (mortgage insurance) is waived. If no disability, then the funding fee is charged but is financed into the loan amount. There is no monthly mortgage insurance payments. With a conventional, you must put at least 20% down to avoid MI. Also as Jason mentioned, the interest rates on VA are generally lower than conventional. If you work with the right lender and real estate agent you should be competitive when making offers. Good Luck.

Apr 11th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,237 contributions

VA rates are generally a little better than conventional, but you have to offset that with the VA funding fee - if you're required to pay one. If you have money for a downpayment the VA fee is lower. Have your loan officer check both options for you.

Apr 11th 2013
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Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 397 contributions

The VA loan would most likely be a lower payment vs. conventional if you are putting less than 10% down. There are other considerations which have already been expressed by other responding lenders.

Apr 11th 2013
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