A VA loan makes more sense than a conventional loan in a couple of instances. The first instance is when the Veteran is purchasing a home and has very little money to put down. This is, afterall, the reason that the VA loan was created in the first place. This was to help those veterans returing home from war who may have had little cash or credit to purchase a home.
However, if the Veteran has 20% or more to put down on their home it makes more sense to do a conventional loan due to the absence of the VA funding fee. There is one exception to this. That is, if the veteran thinks that there is a good possibility that VA loan rates will go down in the near future. In this instance, it might still make more sense to do the VA purchase loan over the conventional loan so that the veteran may subsequently take advantage of what is known as the VA Streamline loan or “IRRL” loan.
This brings us to the second instance of when a VA loan makes sense over a conventional loan and that is when the Veteran is refinancing into a VA Streamline loan. The VA streamline loan is a loan only available to Veterans who are currently in a VA loan, are current on their payments, and are looking to lower their interest rate. There are a couple of other qualification standards but they are pretty minimal. The VA Streamline loan shows its true beauty in times just like now. Many VA Streamline Lenders do not require appraisals to do a VA streamline loan. This means that regardless of the state of the economy or real estate market, Veterans are still able to take advantage of a low interest rate environment such as the one we find ourselves in now. Tens of Thousands of conventional loan borrowers on the otherhand, are currently stuck in their conventional loans without the ability to refinance to a lower interest rate because of their home’s declining appraised value.
In very few instances does the VA cash-out loan make financial sense over some of the other cash-out loan programs available. This is due to the exorbitant VA funding fee charged to the Veteran for his/her subsequent use of their VA entitlement. In such instances one is better off pursuing loans such as the FHA Cash-out loan in today’s lending environment.
If you are considering a VA loan and would like more information, I would highly suggest that you talk to someone who specializes in VA Purchase & VA Streamline loans and who does not require an appraisal on VA Streamlines loans in today’s down trodden real estate market. An excellent resource for this is www.expressvaloan.com or by phone at 888-807-2821.
Great – very cool topic. I’m going to write about it as well!!
Hi there I like your post
Thank you for your help!
To successfully apply for personal unsecured loans, the applicant for the unsecured loan product will need to have a regular source of income.
hi i really enjoyed your post and i will be sure to read through the rest of your blog… I really appreciate the way in which you look at this subject, looking at this in a new light as they say.. bookmarked!
Wow, you’re so much more technologically inclined than I am. But I do so appreciate this website and the info it has provided me… and hope to take some time this week to read more. Love your blog!