I haven’t had much luck investigating this, even with my PGGF. (pretty good google-fu.) I’m hoping a fellow Doper might know something that will help.
My friend’s SO (the father of her little girl) is going to get a modest inheritance soon, in the low to middle five figures. They have no internet access, and asked me to see if it would be possible to somehow combine the money with her father’s status as a Vietnam vet (with, presumably, access to a home loan via the VA or the GI Bill or whatever) to buy a home together with her father. (they are very close.)
They were specifically thinking there might be some kind of program in place that might help them coordinate all the different hoops they would have to jump through.
I immediately thought of Fannie Mae; but I emailed the local advocate/ adviser listed on their webpage, and never had a response from her.
If anyone has a suggestion as to where I might look for further information, I would be grateful. They are a really nice young couple, and their daughter is very dear to me also.
Depending on where they live (which would be helpful information, BTW), an inheritance in the “low to mid five figures” would make for a pretty sizeable downpayment, and just about any commercial bank or other lender would be eager to offer a loan. I don’t see why any special VA, FHA, or other government-backed loan programs should come into play. Just have them contact their bank.
There are a number of benefits to a VA loan that go well beyond interest rates. One of the effects of using VA guarantee is to minimizes the down payment and loan insurance costs normally required in conventional loans, but on the flip side they may increase the real world negotiated price of the house you buy. (read link)
Using the extra cash toward the initial principal is only really going to be a necessity if
1: You’re simply looking to buy down the monthly payment to the smallest amount possible
2: You want to use the cash to qualify loan-wise for a larger, more expensive house than your job income(s) would normally allow for.
They also need to talk with a real estate atty if you’re considering a shared interest in the house with her father, as to how you’re going to structure the sale so if he passes there are minimal estate hassles.