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Anyone here ever used their V.A. loan to buy a house?

B

Brutuskend

Lifer
SO I was digging around in my old paperwork today and found my Certificate of eligibility from the V.A. from 1975. It states I'm eligible for $17,500 (WOOT?) Does anyone know if the amount one is eligible for goes up over time due to inflation etc.?

I could barely get a good used car for the $17k they say I'm entitled too. 😕
 
Search for the VA online and ask them the question. You might be surprized at the answer. Don't just sit on it and assume that they won't increase it. When I got my eligibility certificate (after that date) it didn't have a figure listed so that may be something they took off the certificates and may not apply anymore.
 
Yes, the amount goes up over time. And that $17,500 amount is not for how much house you can buy, but how how much the VA will insure your lender for against default. At this time, the VA will insure (in your area) for a mortgage loan on a single-family house up to $172,900 (which I believe could still get a decent house there). And if your COE is green and is dated 5/7/75 or before, then you may be entitled to additional benefits as an active duty Vietnam Veteran.
 
^^^
Vic answered your question

i have purchased 2 homes with VA loans. they can do it all on the computer these days, when i bought my first house in 1992 we had to go to the federal building in Albany and wait around and fill out paperwork. this time (last year) the mortgage guy did it online.
 
Originally posted by: Vic
Yes, the amount goes up over time. And that $17,500 amount is not for how much house you can buy, but how how much the VA will insure your lender for against default. At this time, the VA will insure (in your area) for a mortgage loan on a single-family house up to $172,900 (which I believe could still get a decent house there). And if your COE is green and is dated 5/7/75 or before, then you may be entitled to additional benefits as an active duty Vietnam Veteran.
Click to expand...

It is green, but the issue date is 9/24/75.
Strange that the date you mentioned is the "cut off" since I was active duty during Nam. (1971-1975)


I did do a bit of research after this post, and it seems it did go up a bit. Though I wasn't aware this amount was for protection against defaulting on the loan.

I will do some more checking around.

Thanks for everyones replies!
 
Originally posted by: Brutuskend
Originally posted by: Vic
Yes, the amount goes up over time. And that $17,500 amount is not for how much house you can buy, but how how much the VA will insure your lender for against default. At this time, the VA will insure (in your area) for a mortgage loan on a single-family house up to $172,900 (which I believe could still get a decent house there). And if your COE is green and is dated 5/7/75 or before, then you may be entitled to additional benefits as an active duty Vietnam Veteran.
Click to expand...

It is green, but the issue date is 9/24/75.
Strange that the date you mentioned is the "cut off" since I was active duty during Nam. (1971-1975)


I did do a bit of research after this post, and it seems it did go up a bit. Though I wasn't aware this amount was for protection against defaulting on the loan.

I will do some more checking around.

Thanks for everyones replies!
Click to expand...

Brutus, a real estate agent is your friend. They will do your leg work for you. Just contact one and ask your questions.

My payments were $135/month having put no money down. I imagine yours will be a little higher. :laugh:
 
Originally posted by: jadinolf
Originally posted by: Brutuskend
Originally posted by: Vic
Yes, the amount goes up over time. And that $17,500 amount is not for how much house you can buy, but how how much the VA will insure your lender for against default. At this time, the VA will insure (in your area) for a mortgage loan on a single-family house up to $172,900 (which I believe could still get a decent house there). And if your COE is green and is dated 5/7/75 or before, then you may be entitled to additional benefits as an active duty Vietnam Veteran.
Click to expand...

It is green, but the issue date is 9/24/75.
Strange that the date you mentioned is the "cut off" since I was active duty during Nam. (1971-1975)


I did do a bit of research after this post, and it seems it did go up a bit. Though I wasn't aware this amount was for protection against defaulting on the loan.

I will do some more checking around.

Thanks for everyones replies!
Click to expand...

Brutus, a real estate agent is your friend. They will do your leg work for you. Just contact one and ask your questions.

My payments were $135/month having put no money down. I imagine yours will be a little higher. :laugh:
Click to expand...

No doubt.

DAMNIT. 😉

I do have 10K to put down though, so that SHOULD help a little bit.
 
No down payment is required on a VA loan. It's not like a conventional with the 20% rule (or pay mortgage insurance). No mortgage insurance ever, and I've even seen people get a small amount of cash back at closing.
 
Yeah a down payment will help with the ammount paid per month. We got our house on a VA loan..

Remember you will be buying homeowners insurance as well so factor that in. They also include that cost in your escrow for your mortgage.

Also if you finance the whole ammount of the house they sometimes make you pay mortgage insurance. However with the VA loan you can finance 100% and pay no mortgage insurance.

 
Originally posted by: Brutuskend
The main thing for me is keeping the payments doable.

I would think putting $$ down would help in that department?
Click to expand...
Yes and no. Or rather, yes with a qualification.

Yes, a down payment will reduce your monthly payments and a large down payment will reduce it by a large amount. However, you have to look at the opportunity cost of that cash.

If you put an extra $10k down and finance at a (tax deductible) 5%, but carry a $10k credit card balance at 7.5%, your monthly payments will be less but not by as much as you're credit card's monthly finance charges.

Even if you've got no debt and lots of cash, you may be better off holding on to your cash and investing it somewhere if you can find something where the return is greater than that 5% loan (reduced by whatever your tax bracket is)

Someone might disagree but that's how I look at it...

<== Oh...Bought current residence w/VA loan
 
No, but I did buy a house from a couple who defaulted on a VA loan once. Got a great deal on it! Turned around and sold it two years later for a $50k profit! 😀
 
There's also the benefit of reserve cash too. An extra $10k down may lower your payments slightly, but $10k in the bank could make a few months' mortgage payments if you ever fall on hard times.
 
I forget how long the certificate is valid for before you have to get a new one. I know in my case, I had my certificate for about 6 years after I was out of active duty. When I applied for my mortgage with VA backing the loan up, the lender wanted me to get a new certificate. Needless to say, I spent a bit of time down at the local VA office getting a new, updated certificate. I thought I had to bring my DD-214 along to show proof of my service. It was actually a pretty quick process.

On my current place, I have used my VA loan. I also did a streamlined refinance through the VA a few years back. On the streamlined refi, I didn't need to get a new appraisal, survey, etc. - which saved some $$ when it came to closing costs.

Oh, yeah, Brutuskend, your certificate was issued in '75 - making you a little old. However, at least you grew up in the 60s. My certificate was issued in 1986.
 
I used the VA loan back in 98 for my current home. Back in 2001 I refinanced and got out from under the VA loan. If I had stayed with a VA loan, I would have had to payed another funding fee.
 
Originally posted by: KK
I used the VA loan back in 98 for my current home. Back in 2001 I refinanced and got out from under the VA loan. If I had stayed with a VA loan, I would have had to payed another funding fee.
Click to expand...

The funding fee is less than paying private mortgage insurance (PMI). However, if you have enough equity, then getting out of the VA program is the way to go. Plus, the convential loan rates could be a bit less, too.

 
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