Love Your VA Loans

08-06-2019

Written by Christine DiMaggio Riise and Aimee Ramos

Some Statistics:

There are over 2 million veterans in California with an estimated 19,000 living within Monterey and San Benito County.

Why is it that we so rarely find that veterans are using their eligibility benefits for home buying? Some we find have never really understood the benefits VA financing can provide compared to other loan programs. Others know about VA loans but have been advised by an influencer (ie. realtor, family member or coworkers) to not use their entitlement as they have experienced Realtors that are not as receptive of accepting an offer with VA financing. Typically due to their lack of understanding the actual product.

Some Pluses:

·         Lower rates!!! Overall rates for VA loans are lower than other programs.

o   Rates go down no worries we can do an interest rate reduction refi for you that is super streamline

·         No mortgage insurance

·         No prepayment penalties

·         More lenient underwriter guidelines

·         Credit score as low as 550

o   More forgiving of less than perfect credit history

o   Shorter wait periods from short sales and foreclosures

·         Lowest cash to close with up to 100% financing

·         VA loans can be used multiple times

Some Misconceptions:

·         You have to purchase a perfect or new home

o   No, the house you want to buy does not have to be PERFECT

o   As long as there are no Health and safety issue (ie: Sanitary, sounds and safe…..no mold, tripping hazards, peeling paint, loose decking or railing that can pose a hazard) you get the picture

Those start the negotiations

·         Closing costs for the seller will be higher

o   No, typically closing costs are identical

·         It will cost the seller more money because termite clearances are required

o   No, in many cases termite clearance is already negotiated as part of ____ the loan.

o    When it’s not; either buyer or seller can pay the cost to have it done.

·         It will require a longer escrow.

o   No, in most cases our VA loan transactions are processed in the same amount of time as a Conventional or FHA loan

Remember you earned this honor. So why not at a minimum explore this powerful buying option!

Contact us today to find out more about VA loans and how a VA loan can get you on the path to homeownership at info@blueadobemortgage.com or 831.626.2112.