Compare and contrast: VA vs. FHA

VA and FHA loans are both backed or insured by the Federal Government, so realtors often confuse the guidelines between the two types of loans. There are a lot of differences, however, and my friend Jay Vorhees at JVM Lending has the scoop below:

Appraisals: Similar

We’ll just let this blog, by JVM’s Appraisal Manager, do the talking. I, Kristin added a few thoughts in brackets afterwards.

Appraisers: Different

The VA loan forces people to use “VA approved appraisers,” which they assign. That often makes the quality worse. The FHA allows us to pick appraisers from whomever we want.

Property Condition: Different

The VA requires clear Section I termite reports, and clear Section II if the items are health and safety risks. FHA allows for “as is” transactions, and does not require a clear Section I. (There have been some recent changes regarding this, but not every lender is aware of them)

Closing Periods: Different

For VA loans, you need 21 days to close them because appraisal turn times are slower, and it’s generally just a more cumbersome process. For FHA, we can close the loans in about 14 days. (Note these are amazing turn times, most lenders need 30 days or more)

Rates: Similar

Both types of loans have lower rates than your typical conventional loans. Lower rates are a major advantage for both.

Mortgage Insurance: Different

VA has no mortgage insurance, which is one of the reasons this type of financing is such a great opportunity for veterans. The FHA, on the other hand, has a mortgage insurance of 0.85 percent for most loans, with less than 5 percent down.

Up-Front Fees: Similar

The VA has a “funding fee” of 2.15 percent with 0 percent down that decreases with larger down payments. The FHA has an “up-front mortgage insurance premium” of 1.75 percent.

Down Payment: Different

The VA loan allows for 100 percent financing (0 percent down), whereas the FHA requires a minimum of 3.5 percent down.

(Final note: most condo complexes are not FHA approved as they have not gone through the approval process which has to be updated periodically, I have not found that issue for the most part with VA because usually the complexes get VA approved at the time of building and it stays with the property)

Pending: 304 Grapevine Pl. (Pleasant Hill)

A past client just put his home at 304 Grapevine Place in Pleasant Hill on the market. It went pending in 7 days and received four offers all over the asking price.

He only bought 15 months ago, but a career with the Coast Guard has him moving to Seattle and he will still walk away with some money in his pocket, although he is telling me Seattle is as pricey as the East Bay if not more so.

I love helping our military sellers and VA buyers. I specialize in knowing about the VA loan, have worked on a military base in Nuremberg, Germany and have a son who is currently in the Navy (on a nuclear sub, NuPoc graduate). If you know somebody who is eligible for the VA benefits and would like to know more about the home buying process, I would be honored to help them.

You can take a tour of their beautiful home here. If you’d like to know what it takes to get your home sold in 7 days or be next on my list of satisfied customers, please give me a call or visit my website at www.kristinlanham.com.

How to Buy Happiness, According to Science

Ski day with some of my WC Lifestyle team members!

I stumbled across an interesting blog recently that collects scientific research to prove that money can, in fact, buy happiness if it’s spent correctly.

For example, if you are spending your income on gifts for others, experiences for yourself, and time with your family, you’re scientifically more likely to be happy.

As someone who dedicates many hours of her life to work, I can relate with the difficulties in finding the free time and money to make all of those things happen.

That’s not to say I don’t achieve happiness, but with the right mindset, I could probably increase my level of happiness – and so can you.

In the blog, the author writes:

Consider this: The two days your spend waiting for your Amazon Prime package to arrive doesn’t build the same kind of anticipation as planning and dreaming about that vacation to Belize does. You take the time off work, brush up on your Spanish, read travel blogs and more, all the while thinking about how epic this trip is going to be. And once it’s over, you’ll tell the story of zip-lining through the rainforest to anyone who will listen for the rest of your life.

My winnings from the charity poker tournament for Walnut Creek Bulldawgs!

I’ve made it a point to spend my time and money skiing in Tahoe; this year, I bought a pass to Squaw Valley. Not only does that allow me to escape the office for a day and do one of my favorite activities, but it oftentimes brings me in close proximity to my youngest son, who attends school in Reno.

And if you’ve followed my blogs or received my newsletters, you know I enjoy combining charity with my real estate work; from this past winter’s coat drive to my passion helping past and present military use their VA benefits to buy a home, to playing in charity poker tournaments to fostering Weimaraner’s until they find their fur-ever home!

So, if you try, buying happiness is possible. I choose to experience happiness through experiences, giving to charity and spending time with my family and friends and that does take money, but in the end it is a decision to choose to be happy.