http://www.bestloanson.com The Best Loan Resource Sat, 17 Dec 2011 10:37:36 +0000 http://wordpress.org/?v=2.8.6 en hourly 1 http://www.bestloanson.com/disadvantages-of-a-va-home-loan/ http://www.bestloanson.com/disadvantages-of-a-va-home-loan/#comments Sun, 13 Dec 2009 07:42:02 +0000 admin http://www.bestloanson.com/disadvantages-of-a-va-home-loan/

There are multiple advantages of obtaining a VA home loan. Since part of the loan amount is guaranteed by the Veterans Administration, the borrower is not required to make any down payment nor does he have to pay exorbitant interest rates on the loan amount. Moreover, the homes constructed under the VA loan program must carry a warranty from the builder, thereby insuring the buyer from any possible damage or repairs.

In comparison to pros, the disadvantages of a VA home loan seem to be insignificant. Still, they are worth mentioning and knowing.

1. Borrowers are required to make a one-time funding fee on VA loans. The fees might range from 1.25 to 3 percent of the loan amount and is determined based on the applicant’s service length. The fee also varies based on whether the loan taken is the first or second loan. Usually, most applicants are charged with a 2 percent upfront fee. Upfront fee can be lowered in case the borrower makes a 5 percent of down payment,

2. VA loans are notoriously reputed to take a long processing time. Hence, many sellers are often reluctant to work with somebody who has applied for VA loans. However, the fact is that the actual loan process for obtaining a VA loan takes about the same time as a conventional loan, which is equal to 2-6 weeks.

3. In case of VA loans, borrowers are not required to pay the closing costs. While a portion of it is paid by the lender, the other portion of it is paid by the seller. Hence, many sellers may not be ready to negotiate the sale price of the home, in case the buyer is somebody who is acquiring a VA loan to purchase the home. ]]> http://www.bestloanson.com/disadvantages-of-a-va-home-loan/feed/ 0 http://www.bestloanson.com/comparing-the-fha-loan-to-a-conventional-home-loan/ http://www.bestloanson.com/comparing-the-fha-loan-to-a-conventional-home-loan/#comments Thu, 29 Oct 2009 20:44:30 +0000 admin http://www.bestloanson.com/comparing-the-fha-loan-to-a-conventional-home-loan/
An fha option is 2000 is that big until you even if an fha option that this means is that the option is better one for you may start to have credit scores are not required obviously if an fha. ]]> http://www.bestloanson.com/comparing-the-fha-loan-to-a-conventional-home-loan/feed/ 0