VA vs. USDA Loan for a Qualified Veteran

On August 4, 2009, in Tips And Advice, by Sue Botelho

If you are a veteran and are looking to purchase a primary home with no money down, make sure that your lender shows you the option for the USDA rural housing program provided that the property and your income qualify. In the case of an active-duty military member, you may want to save your VA eligibility first time use at your NEXT duty station if you can get the USDA program at this time. First time usage of your VA eligibility is 2.15%; subsequent usage is 3.3%, meaning that it will cost you more to buy your next home if you have already used your VA eligibility. This is something that USAA doesn’t tell the veterans as they do not do the USDA rural housing program and it can cost the veteran in the long run.

To see if the home you are buying in Florida, Alabama, Georgia, North or South Carolina will work on this program, contact Sue Botelho at Northstar Mortgage Group – 850-362-6905 (I’m in the Eglin AFB/Hurlburt Field vicinity in the Panhandle of Florida!)

 

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