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Will The VA No/No and FHA Loans be the next to walk away if the market dives again?

  • September 04 2010 - Temecula
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Answers (10)

Best Answer

As a veteran with a VA home loan, and a VA lender, I firmly believe VA loans are here to stay.  It is a self funded program that isn't losing money at all.  The VA actually only guarantees 25% of the loan.  The funding fees that they charge more than cover any foreclosures. 

Statistically, VA buyers are the least likely to foreclose, and when they do, the VA files a lien against your taxes.  This means while you may never pay back your foreclosure to the bank, the VA will recoup their money anytime you file your tax return at the end of the year.  Couple this with the funding fee, and you have a very successful program that will not be hurting for money anytime soon.

All in all, I'm proud to be a veteran and the VA home loan is here to stay.

  • September 16 2010
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Profile picture for tricerealtor22
yes it is are we trying for more contributions!
  • September 16 2010
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Profile picture for Trinidad.Gaeta
Dan the Country Hick has a point of view that is quite interesting... There are responsible people in all walks of life. The reason you see more FHA/fannie/freddie defaults compared to VA loans is obviously the number of loans made by these different organizations when compared to each other. 

Tere Hud homes have been steadily increasing over the past couple years and doesn't seem to be stopping thus far. 
  • September 15 2010
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I have seen VA loans having pretty high closing costs.  I would say to any home buyer, to shop around for rates and closing costs. shopping for mortgage is as important as shopping for houses.

Some buyers look at 50+ houses, but only talk to one lender.  They need to talk to at least 3.
  • September 04 2010
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FHA along with fannie, freddie, and the other gse's should die.

V.A. loans are different. They are targeted to a group who were taught and lived by a code of honor. Very few vets default. 

FHA is designed to give loans to people who can not afford them and will not have a reason to remain if prices drop.
  • September 04 2010
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FHA borrowers have been defaulting in this market for a long time already.  I rarely run across VA foreclosures so I think more of them were done right on the front end.
  • September 04 2010
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Most of the VA buyers that I have worked with are still in their homes. They rarely move unless transferred. I haven't seen one in default. Now FHA, well you can see the answers to that one from my collegues below. Thanks
  • September 04 2010
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Profile picture for Mills Realty
The VA needs to stay.  If the goverment is going to bail anybody out it should be the veterans who have fought for all of our freedoms.  The FHA is another story and will continue to evolve, but the current policy of 3.5% down is just not enough skin in the game for a market that shows further signs of weakness.

Simon Mills
Mills Realty
  • September 04 2010
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The veterans more than deserve the VA loans. I would be surprised if the VA loans disappear.

FHA loans are different since they are incentives and can and do evolve all the time.

Good financing is badly needed to help restore the market. In our area (Miami beach / Miami / Fort Lauderdale) there is heavy demand for housing but very limited financing. The lack of financing is definetely holding the market back at this time.
  • September 04 2010
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I firmly believe in our veterans honor. FHA on the otherhand has loaned money to people that have long histories of financial instability.
  • September 04 2010
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