+1 vote
I am a veteran asking a lender for a VA loan 100%.  Why would the lender want me to fill this form for HUD/FHA Insurance vs VA "Home Loan Guaranty".   Yet my estimate stated VA loan etc.  When I ask them they tell it is just the way this document is sent in.   They are sending a VA appraiser, I paid the VA funding fee $8250.  But I could get this back if I get approved for a recently file a hearing claim.  My problems is, if I agree to there terms of HUD/FHA, something tells me I am not actually using my VA benefit thus will not be able to get the fee back etc, If that option does arise.

So yea I am concerned, confused and generally bummed as this may have been a total waste of time.  

Am I right about what I feel?  I am not getting a VA Loan guarantee.  

asked Nov 14, 2017 in Refinancing by CodeChaser

1 Answer

0 votes
This form is just "boilerplate," a form that everyone who applies for one of these government-backed loans completes. You are not getting an FHA loan if you apply for a VA loan. And you will know that for the following reasons:
1. FHA does not back 100 percent loans
2. FHA does not charge a funding fee (which can be rolled into your loan, if you choose not to pay it out-of-pocket)
3. FHA DOES charge an upfront mortgage insurance premium of 1.75 percent, as well as monthly mortgage insurance premiums. VA is a much better deal.

If you are not approved for the loan, the addendum lists what the lender must do to inform you of this. You will not be charged any funding fee or mortgage insurance premiums unless you are approved for the loan and actually purchase / refinance the property using that loan. If you are concerned about this, don't pay the fee upfront. Just roll it into the loan, and pay the balance down after closing. If you really think they will keep your money.

But they won't.
answered Nov 14, 2017 by Gina Pogol

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