If you are a veteran and are buying your first home you have many different choices when it comes to home loans. Both FHA and VA offer great first time home buyer loans to veterans. What home loan is better for the first time home buyer FHA or VA?Both FHA and VA loans can be scored through Automated Underwriting Systems.(AUS) Your mortgage professional can score you through both types and give you a comparison of your payments, etc.
Both FHA and VA loans have a financed Mortgage Insurance Premium. For FHA, this is referred to as your Mortgage Insurance Premium (MIP) and for VA loans it is called a Funding Fee. The VA does not charge a monthly mortgage insurance premium and FHA uses has a .5% monthly MI premium. These fees often work out to be significantly cheaper than conventional financing MI premiums.
As a veteran, in some cases, you can only use your VA letter one time to obtain a VA loan.
VA loans currently have a higher maximum loan amount at $417,000. FHA loan limits vary by county and range from $200,160 to $362,790 for single family homes. Consult with your mortgage professional at 888-275-6788 to see which program best fits your needs.
