Veterans: Buying a Home With Your Guaranteed Home Loan

[Dan Schultz]

Here is the deal I earned through serving in the Army: Fixed 30 year mortgage at 5.00% with no money down. All I pay are the closing costs and some pre-paid stuff.

VA secured mortgages are a good thing. However, that is one part of veteran's benefits I have never used. Because... when I was ready to buy my first home back in 1968, there were certain restrictions that dictated what you could and could not buy. For example... if you wanted to purchase a 'fixer-upper' at a low cost and put some 'sweat equity' into the home... the VA would not work with you if the house did not meet certain criteria. The home simply had to comply with a long list of things like the condition of the heating system, and most all other basic parts of the house. It had to be 'good to go' in order to get VA guarantee.

Have thing changed? or do you still have to get a 30 year loan? That was another thing back in the 60's.... you HAD to go for 30 years. You couldn't simply get a 10 year note with larger payments (and lots less interest).

VA benefits are a good thing. Use 'em up. I wouldn't have seen a college classroom without it.

[WilliamVance]

Congrats on getting in your own home! There is so much paperwork and different institutions involved in buying a house with a mortgage. It sounds like you had to jump through even more hoops than with a conventional loan through a bank. When I purchased my home a few months ago, they practically held my hand and did everything except for sign my name to all 1,000 documents. Best of luck to you in your new house!

[tubatooter1940]

Congratulations, Wade. You are now a homeowner and a man of property.
I also, had a wonderful ex-teacher who was a master realtor and a true friend. He showed me how to get more house for less money than I had ever thought possible. My wife and two kids were proud of our home and it's location. Trading down enabled me to retire early.

[WilliamVance]

Actually, I had to deal with one dolt and one bureaucrat. I have had to do next to zero paperwork. The aforementioned "packet" was pretty thin. This is a process that is far easier than I ever expected. I have signed and initialed some stuff.

Have you "closed" yet? That is where all the hand-cramping went on for me! I also had to go through about 40 LBs. of B.S. paperwork when I signed the contract on my house since it was new construction...

[Rick F]

There's a lot of good stuff in this thread.

When we bought our house 22 years ago (now paid off since we got a 15-yr note), I remember our lawyer having us add the statement, "Mechanics lien law hereby deleted" to one of the closing papers. In the state of FL, there is a law that states if a sub-contractor doesn't get paid by the contractor, he/she can come after you—the new home owner. If it's a new house, and a sub-contractor doesn't get his money, this could be a problem if your state has the same law.

Our real-estate lawyer didn't go to the closing himself, but looked over the closing papers before we closed. Not sure if they still do that, but it's sure a lot cheaper.