Why Does Dave Ramsey Hate the VA Loan?

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I'm In The Military. What Kind Of Loan Should I Get?

What Is a VA Loan?
A VA loan is a mortgage loan available through a program established by the U.S. Department of Veterans Affairs (VA) (previously the Veterans Administration). With VA loans, veterans, service members, and their surviving spouses can purchase homes with little to no down payment and no private mortgage insurance and generally get a competitive interest rate.

How a VA Loan Works
VA loans help active service members, veterans, and their surviving spouses become homeowners. They provide up to 100% financing on the value of a home. Eligible borrowers can use a VA loan to purchase or build a home, improve and repair a home, or refinance a mortgage.

The VA sets the qualifying standards, dictates the terms of the mortgages offered, and backs the loan, but doesn’t actually offer the financing. Instead, VA home loans are provided by private lenders, such as banks and mortgage companies.

When borrowers apply for a loan, they need to provide the lender with a certificate of eligibility from the VA. To get the certificate, you’ll have to produce service-related documentation, which can vary based on whether you are active duty or a veteran. The certificate can be obtained from the VA website. Although some of the lender’s own underwriting requirements still must be met, in most cases, VA loans are easier to qualify for than conventional loans.

VA loans, Federal Housing Administration (FHA) loans, and other loans insured by departments of the United States government have securitization through the Government National Mortgage Association (GNMA), also known as Ginnie Mae. These securities carry the guarantee of the U.S. government against default.

VA Loan Terms
The terms of VA loans are quite generous compared to other mortgages and even to other federal loan programs. Among the benefits:1

No down payment is mandated unless required by the lender, or if the residence’s purchase price is above the established property value.
There is no private mortgage insurance requirement.
Closing costs are limited and may be paid by the seller.
There is no prepayment penalty if the borrower pays off the loan early.
Assistance is available from the VA to help borrowers avoid default.
Credit score minimum requirements differ slightly from lender to lender. The VA’s only credit requirement is for the borrower to be considered a satisfactory credit risk by a lender. The benefits of a VA loan are the same no matter which lender you choose.

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#DaveRamsey #VALoan #BuyOrRent
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DISCLAIMER:
This video is for entertainment purposes only. I am not in any way acting as an agent or representative of the Department of Defense or United States Federal Government when presenting this information. I am not a legal or financial expert or have any authority to give legal or financial advice. While all the information in this video is believed to be accurate at the time of its recording, realize this channel and its author makes no express warranty as to the completeness or accuracy, nor can it accept responsibility for errors appearing in this video.

ADVERTISER DISCLOSURE:

[JakeBroe]

Thanks for watching! Check out my entire playlist of videos on buying a home here:

[catherinesegovia]

I just bought a home using a VA loan. My rent was $1550 a month. My mortgage is $1064. I’m better off not listening to Dave.

[darriusjordan]

I'm a veteran and I used the VA Loan to purchase my home. Just do what's best for you.

[adivax]

I’m new to this channel and I don’t care what Dave said...We’re in the process of buying a new home using our VA loan. We’re grateful for the VA! My hubby served in the Navy for 22 years and my son is active Army...thank you VA!

[rosegold.pepino]

ramsey can shove it.. we had plenty of “painful” experiences to learn from while in the service, i personally appreciate the VA making homeownership less “painful” 😌

[preciousgrl]

I'm a platoon sgt in the Army, and I have two types of soldiers. Paycheck to paycheck and savers. I recommend Dave Ramsey to my paycheck to paycheck soldiers, and I recommend Graham Stephan to my savers. I will start introducing this channel to all of them. Thank you, this is a really great content!

[darrenjames]

Great video. I just paid off my VA loan in less than 12 years on a 30 year loan. Any responsible service member can, and will, greatly benefit from using one.

[mlevesque]

I bought my house with a VA loan, being service connected it was no brainer. I live in an awesome neighborhood, neighbors are mostly all vets.

[IndigoChild]

I got a great deal with my VA Homeloan. You earned it. Use it.

[jessicadawson]

Basically he doesn’t like it because it’s a privilege he’s not entitled to.

[jamesrevell]

In 2004 I went from $750 per month rent to $510 per month ownership thanks to my VA loan. I was lower middle income and could never have saved 20% for a down payment especially with real estate prices going up 10% a year. It was only after I got my VA loan was I able to start getting out of debt and refinance at a much better rate. The reduced cost for housing allowed me to pay off all my other debt faster and now I'm actually saving at a rate I never thought possible.

[dashsubzero]

As a mortgage loan officer I can assure you that the VA home loan is the best loan product on the market. Yes even better than conventional... Why? Many reasons but here are a few:
1) va interest rates are subsidized and backed by the government typically and are anywhere from 0.375%-0.625% lower than a conventional mortgage rate. Even if you do not have a disability rating and have a funding fee your savings from the lower rate will outweigh it.
2) leverage - va guidelines allow for alternative means for loan qualification by using residual income (money left over at the end of the month) rather than a standard debt to income ratio. Hypothetically speaking, this will keep you from being house poor. This will allow you to be more competitive by having more purchase power. Just remember, just because you can doesn't mean you should.
3) the va will work with you during times of hardship.
There are more but buying a home is a way to acquire wealth. Waiting is costing you future equity despite what happens in the short term because the alternative is paying rent.

[bubbalou]

I signed the contract and got my key. Nothing else needed. VA loan was great for me

[DDoc]

VA loan is gold. Use it if you earned it.

[laredotech]

VA loan is amazing. I was able to pay off my house in 5 years. I did put 40k in down payment (no need for PMI on regular loans), but I saved me money on closing costs being a disabled vet.

[Strength_Willing]

My wife and I used the VA loan, bought a new home, used the BAH to pay mortgage, then sold the home and made 40k. It’s a great tool!

[ranger]

I wouldn't be a property owner today if it weren't for a VA loan for my first home almost 50 years ago. It's a good deal for young vets.

[markJones]

I did 20 yrs in the military, I have a VA home loan, I have earned that home the hard way with 2 tours in Iraq and 2 marriages because I was always deployed somewhere a lot. My Apr on my house is 2.5 on a 30 yr fix, the house cost 100K, but its value now is 230K. I owe 75K after 10 yrs, but got 110K in a CD since I plan to retire from my second job in 3.5 yrs with another 20 yrs in a state retirement. My retirement checks will equal 11K a month when I retire and I will be 60 yrs old.

[greatness]

I’m a veteran and I’ve bought and sold twice. The process was seamless. The VP of my bank which works at a well know bank rather do VA loans versus any other loan. The process is the same as FHA as it pertains to appraisals and inspections so don’t let banks and people like Dave discourage you from a VA loan.

I’m attempting to o relocate to Georgia and the housing market along with greedy realtors has told sellers to not consider VA or FHA loans. This is horrible and a slap in the face to the people who served and can’t lay down roots bc of the lies.

[jodycamper]

Have used a VA Loan to buy two of my homes so far. Both homes Ive bought with a VA Loan the payments were WAY less than the rent I have paid. My current mortgage payment is 600 a month for a 3BR 2.5 BA 1500 sqft home. Cant beat that.