Why don’t people want to use them?
VA, FHA, USDA…What about government loans?
It’s Robin and I am here with Dave Smith from Caliber Home Loans and we’re going to ask Dave some questions about mortgages. I’m hearing a lot of things from agents, from a buyers and sellers that some loans are less desirable than others. Meaning that I don’t want an FHA, I don’t want to a VA, I want conventional, I want this. I don’t want that. So Dave, tell us what is really the difference in some of those.
What is the difference?
The difference between conventional loans and government loans is the appraisal. The appraisal comes with an inspection on the government loans. When a conventional loan they don’t; so that scares a lot of people off. If the property’s in decent condition they’re all the same across the board. I mean, government loans tend to have better rates, easier guidelines, and higher ratio capacity. I’ve closed several in the last couple of months. I had 55/56% back end ratios and conventional, you’re capped at a 45% back end unless you have over 700 scores.
Do you have to be a VA expert where that is all you do is VA loans?
A lot of people call themselves VA experts. We have a designation called the Caliber Military Veteran Lending Professional that we do a series of classes to get. I think it gives us an advantage because you have to know your guidelines. But per se, a VA loan is not any more difficult than any other kind of loan. If you do your homework up front and you get your documents, you do what you’re supposed to do, then there shouldn’t be any issues.
Nothing to be afraid of…
So there’s really nothing to be afraid of from a buyer perspective and agent perspective or even a seller perspective. The only problem is eventually if there’s stuff that isn’t working that needs to be fixed, they required to be fixed. And that is to have the buyer’s interest in mind.
If you have you have any questions about the mortgage for buying a house…What do I qualify for? Am I eligible to use my VA? Should I go FHA or VA? Dave is more than happy to answer any questions that you guys have and point you in the right direction. He can be reached at 214.202.22658 or RockMyMortgage.com
When it comes to buying and selling residential real estate in Texas, the Robin McCoy Group is your go to for information, resources, and support. Do not hesitate to reach out at 214.226.3770 or RobinMcCoy@kw.com