So I went to secure financing on a house near the gulf coast in the florida panhandle. plan was to put 10% down on a VA loan. I was denied the VA mortgage because the appraiser said the house was in a coastal barrier zone. based on the maps i've found online, it is. The lending company suggested an FHA instead. From reading the wikipedia article on the coastal barrier resources act, i learned the act prohibits the fed gov't to spend any direct/indirect development money in these areas, which is why the VA won't write finances in them.
The mortgage company suggested an FHA loan instead. All of my studies to date were based on the VA terms, so I'm pretty unfamiliar and need to act quickly. I wonder if the federal backing of the FHA loans would also prohibit issue of those loans in coastal barrier regions. Can anybody verify? I hope the mortgage company i'm working with isn't that stupid..
Also, can anybody describe the major differences between VA & FHA? The loan calculators I look at online show the monthly payments as ~$100 higher on the FHA. Is this all from the PMI or are there other charges i'm not aware of?
The mortgage company suggested an FHA loan instead. All of my studies to date were based on the VA terms, so I'm pretty unfamiliar and need to act quickly. I wonder if the federal backing of the FHA loans would also prohibit issue of those loans in coastal barrier regions. Can anybody verify? I hope the mortgage company i'm working with isn't that stupid..
Also, can anybody describe the major differences between VA & FHA? The loan calculators I look at online show the monthly payments as ~$100 higher on the FHA. Is this all from the PMI or are there other charges i'm not aware of?
