My husband and I are looking to buy our first home. He's a physican in the Navy Health Professions Scholarship Program who's starting his internship, which means he's been in the Navy for four years, in the reserves for most of it with 180 days active. He's now an O-3. We've been told we qualify for a FHA loan but the monthly payments seem very high. We're not sure if we qualify for a VA loan or if the payments would be lower if we could get one. We will only be in the area for the five years of his residency since after that he'll be active duty for four years. We have found a house we like a lot that is lower than the cap we were given for the FHA loan so we want to make an offer but we want to be sure it's the right loan first. Both of us have good credit (his scores are low 700's, mine are high 600's) and we don't have a lot of money to put down. If we can get a good 30 yr rate we could see hanging on to this house (assuming of course that we get it ). Any advice would be greatly appriciated.

I believe he would be eligible for the VA loan. Payments would be a little bit lower compared to the FHA loan because there is no monthly mortgage insurance on VA loans like there is on FHA. Also, there are several banks that offer doctor loans that are basically 100% financing with no PMI up to $1.5M but the rates are a bit higher on those.

Paul
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To follow up on mirdreams question. I'm to an HPSP scholarship recipient. I'm still in dental school and will graduate June 2008. During the spring of 2008 I'm heading out to where I get stationed and buying a home. I'm I eligible for a VA loan even though I'm not an active duty yet.

Also I was in the national guard from 2001-2005. I only spent 3 months on active duty during that time for basic and AIT. If I don't qualify under the HPSP would the national guard help qualify me.

You have to have at least the 180 days active duty.

Paul
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I was honorably discharged from the regular Air Force after 11 months in 2002. I've been in the guard for 4 years, and am currently back on active duty for flight school (1 year and 2 months so far). Am I eligible for the VA loan?

quote:

Originally posted by ApacheDriver83:
I was honorably discharged from the regular Air Force after 11 months in 2002. I've been in the guard for 4 years, and am currently back on active duty for flight school (1 year and 2 months so far). Am I eligible for the VA loan?

See response by MortgageGuru above.

Apachedriver- You probably are. The one way top know for sure is to order a copy of your certificate of eligibility and see what comes back.

Paul
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I have just applied for the VA loan and I am not eligible by their standards. IN ORDER to qualify you must document that you have served as a reservist for a MINIMUM 6 YEARS, and HPSP is only 3-4 depending on your scholarship. In addition, the 180 days of active duty must be CONSECUTIVE, and our 4 ADTs equalling 180 days are not.