VA loans used to be a golden egg ("aig" here in Texas
). No down payment and outstanding debt-to-income ratios. However, there are conventional products that compete now. A lot of folks didn't, and still don't, realize that 100% financed does NOT mean
No Out of Pocket. It simply means that 100% of the purchase price of the home is financed. You still have to pay for appraisals, inspections, insurance, etc. On a $100,000 home, these incidental out of pocket costs can easily be 3 or 4 percent of the purchase price. Sometimes you can get the seller to help with those, sometimes you can't.
In a few instances a VA will still be the way to go if you have it. Most of that being a shortage of available funds to close and/or a ding on your credit. Even though the general requirements remain the same, the documentation requirements have tightened up some with the recent mortgage market implosion.
Brad
