If you are interested in receiving a VA Home Loan, there are some important things to know and understand.
Four key elements a lender considers for VA loan approval
- VA entitlement
- Eligible Property
- Occupancy
- Financials
Seller can also contribute up to 8% for Debt/Buydown/Closing Costs
VA Home Loans Benefits & Key Points:
1. VA Loan Rates Are Lower: According to loan software company Ellie Mae, VA loan rates are typically about 0.25% lower than those of conventional loans. The VA backs the mortgages, making them a lower risk for lenders. Those savings are passed on to Veterans. There are NO MORTGAGE INSURANCE premiums
2. Lenient guidelines for lower credit scores, bankruptcy, foreclosure: Unlike many loan programs, a lower credit score, bankruptcy or foreclosure does not disqualify you from a VA home loan
3. Surviving spouses may be eligible: Un-remarried husbands and wives of Service persons who were killed in action can buy a home with zero down payment and no mortgage insurance. Plus, the VA funding fee is waived.There’s no way to repay the spouse of a fallen hero, but this benefit surely helps them move forward after tragedy.
4. Any Lender or Realtor will not do: Not all Realtors have experience with Military buyers, and not all Lenders fund on VA loan.
5. VA loan is a lifetime benefit: Veteran can also purchase a second home depending on eligibility
6. You can use a Military Relocation Professional (MRP) and can’t be charged commission or fees with a VA loan
Why an MRP? They understand why a military home sale or military home purchase is different. Here are some of the benefits they offer.
- Language. For starters, they know the acronyms. No one has to explain to them what PCS, RAP, and BAH are.
- Benefit support. VA loans are available in most cases, and they increase buying power. An MRP can help evaluate the terms and recommend VA lenders.
- Short timeline focus. They understand that a PCS buyer or seller needs to act quickly and is often in a solid position to help them. They can do all the legwork to find a house, write a purchase agreement, and negotiate the final terms in days.
- Boots on the ground. A buyer may have to commit to a home they’ve only walked through online. A seller may not complete the transaction before shipping out. Most service members can’t fly back and forth for different steps in the process. An MRP can be there for inspections, repairs, and even closing if the buyer/seller can’t make it.
- Local market knowledge. An MRP will know where the schools, parks, and amenities are in a neighborhood for a buyer. They’ll understand the commute. They’ll be familiar with the local market trends.
- Networking. Most MRPs have a network and know other MRPs throughout the country. They may be able to identify buyers coming into the old location or sellers leaving the new one. They generally know moving companies that understand military moves.
Learn more about VA Home Loans, Military Relocation, and working with a Military Relocation Professional (MRP). Our own MRP, Staff Sargent Shane Hughes served 10 years and is happy to helpo his fellow veterans through the process. >
Thank you for your service!