VA vs USDA vs FHA. Which one is best?

[Zachary Caudill]

My relator recently told me that if I used my VA loan, it would cost more the next time I use it. I don't really understand what that meant. Can anyone explain that?? She suggested I use the USDA loan instead. What are the pros and cons of a VA or USDA or even an FHA home loan?

[Jared Viernes]

https://www.benefits.va.gov/homeloans/documents/docs/funding_fee_table.pdf

Go here for more on the funding fee. You may also be expected to pay for inspections (except termite). You cannot be expect to pay anything to your real estate agent. The lender can charge up to a 1% origination fee.

If you want to know more go to the VA Lenders handbook that is mentioned in the link above. Most real estate agents don't understand the VA loan benefits; most lenders actually don't understand the benefits either. If you find a real estate agent that is a Military Relocation Professional (MRP) they should be able to get you in touch with local lenders to get your loan pushed through.

The major national lenders that give out VA loans most often have often have crappy loan officers that are way out of the loop. Getting a local lender gives you a stronger offer when using a VA Loan for two reasons.

1) they can close faster (in as little as 30 days in some instances - vs 60 for national lenders)

2) their pre-qualification is more rigorous so their financing will not fall through as often. (Unlike other loans the VA loan is never pre-approved; so only those who care to save their time will actually qualify you well during pre-qualification)