The Untold Possibilities of the VA Home Loan

If you’re an active-duty member of the military, a veteran, or a surviving spouse, then you’re probably aware of the VA Home Loan. This loan opportunity that was implemented in 1944 has provided many benefits to the nation’s heroes. What you may not know is that the VA Home Loan is more than just a way to purchase a home. There are many untold possibilities that this loan offers.

In this blog post, we’ll delve into the valuable benefits and potential perks that come with getting a VA Home Loan. Bow Wow, every Realtor and Loan Officer in this country tells you they are a "VA expert" The reality is that many don't understand the full possibilities that the VA loan allows. Go to the end of this article and you're going to see some amazing benefits and I'm sure one of which you didn't know you could do with a VA loan.

No, being someone who's also a licensed agent in the industry. This is an attack on them, because they simply do was so many tell them. And if you were a fellow agent in this industry, I implore you to make sure you fully read what's available to your clients to best serve them. And being a veteran, I can tell you that serving our nation's veterans is more than just throwing them into a home and saying we beat that percentage we all know.

No Down Payment Required

One of the most significant benefits of the VA Home Loan is that you’re not required to make a down payment when purchasing a home. This can be a considerable advantage, especially for first-time homebuyers, since you don’t have to gather a large sum of money to make a down payment. This means that you could potentially move into a new home with no money down and a lower monthly payment. This is something that traditional homebuyers don’t have access to.

Entitled to Refinancing

You may also use a VA Home Loan to refinance a current home-owning situation. This loan comes with an option called Interest Rate Reduction Refinance Loan (IRRRL) that doesn’t require an appraisal, credit underwriting, or qualifying debt ratios. What that means is that you could significantly lower your previous interest rates with limited paperwork or documentation.

Zero Penalty for Prepayment

Another option that comes with a VA Home Loan is no payment penalty for prepayment. So if you have the funds to pay off your home loan early or make extra payments without interest or penalties, this is very valuable.

Access to Lower Interest Rates

The VA Home Loan often offers lower interest rates than other forms of home loans. Although it’s a government-backed loan, it’s not considered a riskier one, making it an excellent option for many veterans, especially those with less-than-perfect credit scores.

No Mortgage Insurance Required

Most home loans come with a mortgage insurance requirement. The impressive thing about VA Home Loan is that it doesn’t require mortgage insurance on your loan at all. This is a considerable perk that could save veterans a lot of money compared to traditional homebuyers.

Uncommon VA Loan Potentials

Building a New Home

Building a home with a VA loan is something that is becoming more common, but isn't fully understood by some in the industry. I personally am going through this process and I can tell you it's more than just buying any typical new construction because I'm not talking about the new construction communities. I am talking about building a home completely on its own, not in a community. This decision comes with a lot of risks, because not only to find a builder that is certified by the VA, which is a simple process in itself, you have to make sure you qualify for the loan and the stress that comes with building a home because it's not for the weak. And while many lenders are pulling back in this program, because of the rates, you do have to make sure you find professionals. I can walk you through the entire process, heck at the time of writing this article I have a builder that will cover a veteran's first six months of a mortgage after construction in Florida.

Va Assumption

?What if I told you you could potentially get those low rates from years past? Well, every loan servicer is required to have what's called the VA assumption department. What this is is say a veteran is selling their house worth 150 K and they owe 100 K, well if another veteran comes in to buy it and can pay the 50 K difference they have the potential to assume that other veterans lower rate. many will find that their current loan servicer will not allow this process, most likely what occurred is your original loan provider sold your loan. In this situation, the current provider will have to sell the loan back to the original provider if they cannot provide this service. There is a lot more to this so I am always free for the conversation because every situation is different.

Multi-family

With a VA loan, you are actually allowed to purchase up to a 4-unit residential property (5+ is considered commercial). Many will tell you, that you can you use 75% of other unit rents to help you qualify your income for the property. But let it be known that if you don't have a document to two years of landlord experience, most lending institutions will require you to have six months of mortgage payments in an Account aside from closing costs needed for the property. Know if you can afford the home outright then this doesn't apply but I think a lot of the veterans get misinformed about this magical income ability using the rent. That being said you could always start with a single-family or condo and then rent out that for a couple of years in experience. Also, beware that many realtors do not understand multi-family and its complexity, I have helped many veterans get into the space, and almost every time there Hass to be a level of understanding that you're not buying a typical house to live in. You have to look at it like an investor, even if you are taking one of the un because remember with a VA loan, you have to live in one of the units. As of writing this article in 2023 out of all types of housing, this is one of my favorite I even had a client last fall in 2022 who actually got credited $12,000 when they closed on their san diego property.

Conclusion:

The VA Home Loan is more than just a way for veterans to purchase a home. It offers several incredible perks and benefits that are often overlooked. This loan opportunity provides veterans a chance to move into a new home without a down payment, refinance current loans, and access the extended term. These benefits can significantly impact a veteran's home-buying experience and allow them to live more comfortably. So if you’re a veteran or serving your country, considering the VA Home Loan option is a wise decision. Take advantage of a valuable program that has been designed for the nation's heroes like yourself.

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