I am a Veteran, Loan Officer is recommending FHA loan - What should I do?  The VA loan program offers veterans a federally guaranteed home loan with no down payment.  It is the best loan programs for veterans.  As a veteran you should use it if at all possible.  Moreover VA's loan program has underwriting guidelines that make sense and can often help what appears to be an unqualified veteran, their spouse or even their children depending on the circumstances.  Therefore, if your Loan Officer is recommending another loan product,  it's important to know why.   If you have any doubts, then get a second opinion.

The VA loan program has many advantages including the following:

1.     Zero down payment

2.     No monthly mortgage insurance

3.     Maximum allowable closing costs - A list of set and maximum fees that the veteran may pay.

4.     Reasonable discount points - Brokers may charge only those discount points required to buy down the loan's interest rate

5.     Non-allowable borrower paid closing costs - a list of specific fees that the veteran may not pay.

6.     For purchase transactions, the cost of required repairs and inspections must be paid by the seller.  VA does not permit the veteran to pay for repairs other than minor termite damage repairs.

7.     VA permits consideration of the non-borrowing spouse's income when debts are being included in the ratios and the property is located in a community property state.

8.     You can appeal if denied if you have a compelling argument.  

The VA loan  program is a benefit that you have earned for services rendered to your country.  There are occasions you may not be able to use it because of your total profile.  However it should always be your first choice as a veteran.