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I want to buy a house in Las Vegas while I am in the military and while the prices are still extremely low. I’d like to go through USAA for the loan, but I am not sure if I should get a VA loan or not. The houses I’m looking at are $ 75K-$ 100K. I can put up to 10% down but 5% would be better. I don’t live in Las Vegas but I am planning on making a trip out to look at houses in a couple months.

I am a first-time home buyer (if you don’t count the mortgage my mother made me sign when I was 18) and I don’t know where to start. USAA’s website is kinda of confusing when it comes to mortgages. I have heard that VA loans can be a headache; what benefits does it offer over a conventional mortgage? What other hidden costs are associated with buying a house and how much? Can you guys give me some info or words of advice? Thanks!

3 Thoughts on First-time home buyer, where do I start using a VA loan and USAA?
  1. Reply
    June 12, 2012 at 1:56 am

    There might be a problem with you stating your mother made you sign when you were 18. In most cases to make a FHA mortgage loan work, the mortgage loan officer would have the parents get a son or daughter to sign on the mortgage to insure that the mortgage would be approved because they had no baggage or negative credit.

    If you are on the mortgage note and signed the mortgage loan docs then you are responsible for the monthly payment on the house thus this debt would appear on your credit report. Being on the mortgage note and that debt being on your credit report would affect your debt to income ratio.

    Using a VA mortgage requires no down payment on the part of the veteran, so keep your 5% in your pocket. With the amount of house you would like to purchase, your closing cost would be around $ 1,500.00 to $ 2,000.00. VA mortgages do not use your credit score as a means of denying your mortgage loan application.

    There are no hidden cost in VA backed mortgages because you are not required to pay any.Tell your mortgage loan officer you would want a VA no no, Your origination fee and cost of the mortgage loan would be rolled into your mortgage.

    Obtaining a conventional mortgage you would be required to pay origination cost and fees or have your interest rate increased if you decide you did not want to pay for the points and fees of your mortgage loan.

    VA mortgage loans are no a headache, don’t allow the seemingly endless paper work bother you or stress you out. You VA mortgage lender would walk you through the process with little or no rpeoblems.

    Speak with a local mortgage company that is authorized to do VA mortgages. Speak with a VA lender in Las Vegas, Get pre-approved by a loan officer. Attempting to complete the mortgage loan application on the internet would be daunting.

    As one combat veteran to another another veteran thanks for serving.

    I hope this would be of some benefit to you, good luck.

    “FIGHT ON”

  2. Reply
    June 12, 2012 at 2:20 am

    Doesn’t have to be USAA. Most mortgage lenders offer VA. As a first time buyer there are all kinds of programs geared towards you.
    VA has a zero down program. They have a mandatory closing fee which they will not allow the buyer to pay. It ranges from$ 1,000-$ 1,500 (depending on the lender) which you can put into your offer. FHA has a $ 100. down program ~ one example is if you pay full price for a HUD listing. Conventional ~ can go as low as 5%. All depends on your credit score. VA is the best as far as overall cost and interest rate. Would avoid buying points to lower interest = just adds to your overall mortgage.
    It is a tricky business and would first find a mortgage lender you feel comfortable with before you actually start your search. Finding a reliable Realtor (look at their education and sales history) is also key. Realtors usually know good mortgage brokers. Be sure to get a good inspection before your purchase. Costs, but it is worth it ~ even if you have to walk away.
    Good luck!
    The first answer came in while I was writing. Wouldn’t worry too much til you talk to a good lender = a good one will give you a copy of your credit report and will advise your viability for a loan.

  3. Reply
    real estate guy
    June 12, 2012 at 3:19 am

    You should speak with a lender. They will put in writing the 3 loans (payments and closing costs) so you can compare.

    I would say USDA is the best loan.

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