Can you qualify for more money if you use a VA or FHA loan instead of a conventional loan? Will this usually come at a higher interest rate? I have tried the home affordability calculators but they do not take into consideration different kinds of loans.
my question is will I be approved for a higher amount with a VA or FHA loan vs a conventional loan?
For example, if I would normally be approved for 150,000, would my approval amount for a VA or FHA amount be significantly higher?
FHA and VA loans will generally have LOWER rates than conventional when you compare them apples to apples.
Lets say you need a loan at 97% loan to value and you have a credit score of 620 the rate for a conventional loan with all of the lender adjustments will be higher than either FHA or VA.
Conventional loans will also have a much higher monthly mortgage insurance payment.
It’s because that depends on your credit sweetie. Those calculators can’t pull your credit.
VA loans, you can get 100% but you have to be a veteran.
FHA loans allow you to buy with about 3% down.
Yes, the interest rates are slightly higher than conforming.
You pay MIP with FHA but not with VA loans.
Everything else you are looking at a minimum of 10% down.
References :
VA & FHA generally have slightly higher interest rates. Contact a bank to see what you qualify for.
References :
VA Loans are for military or former military and they DO NOT always have higher interest rates…we just closed on our house using the VA loan and our interest is 4.75%
References :
FHA and VA loans will generally have LOWER rates than conventional when you compare them apples to apples.
Lets say you need a loan at 97% loan to value and you have a credit score of 620 the rate for a conventional loan with all of the lender adjustments will be higher than either FHA or VA.
Conventional loans will also have a much higher monthly mortgage insurance payment.
References :
I’m a mortgage banker/broker