Hey! Noob question, the only special thing about the VA loan is no down payment? Is that so?

The no down payment deal works out that you finance the house 100% with a VA guarantee. So, unlike conventional loans, where you’d need mortgage insurance for a few years before you build equity, you just start paying the house and interest down without the extra mortgage insurance.

Everything else is the same save the slightly stricter criteria for home inspections. So good credit, income three times the mortgage payment, etc. (There’s other small things I’m unfamiliar with like the lender can’t act predatory, protections afforded to you during bankruptcy should that happen, other stuff that I’m not too familiar with)

Also the “streamline” process for interest rate reduction. After you’ve had your mortgage for six months you can do an IRR (if interest rates have dropped) and the VA makes it fairly easy and has built in consumer protection.

No PMI but there is a VA funding fee (unless you qualify for waiver due to VA disability). The fee can be reduced by putting something down but can be less than 20% required by conventional mortgage (for no PMI).

Also allows you to buy a flip home that hasn’t reached the 90 period required between buying and the reselling a home. I don’t advise buying a flip home unless you are handy and experienced home owner. They cut corners everywhere to save costs and time. Unfortunately as military, we get stuck sometimes between a rock and hard place when we PCS and need to find a new home, especially when we have kids involved. This is my current home and we were able to talk the investors down on the price due to the shortcuts noticed that would have to be redone.

100% financing

No monthly mortgage insurance premium. (MMIP)

VA funding fee is exempt with VA disability ratings of 10% or higher. Veterans are permitted to roll that into their loans whether purchase or refi.

While VA does not require credit scores, the lenders that lend on it do to determine pricing the rate. There are speciality lenders that will do financing with no scores or even scores in the 500’s (which I got 2 just today at 6.75% with fico’s 550-590).

VA will require the house to be Safe, Sound, and Secure. This means NO Section 1’s on the appraisal and termite inspections. Section 1’s are the repairs or treatment the VA underwriter will require to be fixed by the seller. The VA will not insure the loan otherwise.

VA rates are also superior to conventional or VA. When a stupid realtor tells a veteran go conventional, even if you downed 50% your VA rate would still be 1-3% lower all day long. And FHA is derived from GNMA, it’s basically the civilian version of VA with UFMIP (version of Funding Fee) and MMIP.

You should shop around and get quotes.

https://www.consumerfinance.gov/ask-cfpb/what-exactly-happens-when-a-mortgage-lender-checks-my-credit-en-2005/

Knowing this all you’ll need to do is blitz and get same day quotes. The mlo’s that are slackers and get numbers to you late (process of elimination).

The mlo’s that tell you “don’t apply for any mortgages and shop” probably just afraid they’ll lose you because their rates suck.

Best of luck on your search, and get a real preapproval issued from an underwriter. It gives more confidence so you don’t get blindsided in the middle of contract. Get 90% of your qualifications verified and provide more certainty to sellers and realtors. That’s how my clients get in contract within 7 days of the underwriter issuing the letter.