I just saw an amazing question/answer program with the head of the VA loan program, called a Hangout. I am an experienced realtor and have done quite a few Veteran home loans, but even I learned some things watching this, and I want to share some of the information.
They gave their 20 millionth loan recently, in 60 years (started in 1944) of helping veterans buy homes. Last year was their 2nd biggest year of giving loans and they are on track this year to beat the best year. Why is this so popular?
1. There are 25 million veterans and yet only 1.8 million have a loan.
2. There is NO down payment with a VA loan and the closing costs can be rolled into the loan, or
you can ask the seller to pay them and up to 4% of the prepaids.
3. Veterans walk away from the closing table with $$$$ in hand; which can be used to fix broken
heaters later on or do rehabs right now.
4. It's not your Father's or Grandfather's VA program. It's updated, computer friendly, no paper,
Instant approval on your military qualification.
5. These loans have the fewest defaults for the past 5 years than any other kind of home loan.
6. You can refinance them with no appraisal fees under their Streamline program.
7. If you have another type of loan, you can still refinance into a VA.
8. If you are disabled, you can get rid of property taxes.
9. If you live in Texas, use this and the Texas land Board and get a lower interest rate.
10. The pest inspection makes sure you get a good home that termites have not eaten away.
11. The inspectors have lightened up and they only report dangerous situations, like live
electrical wires.
12. They have added 1,200 new appraisers, so their appraisal times have speeded up to 10 days
rather than 30, so the time to close is shorter.
13. You earned this benefit - USE it. If you have an inexperienced realtor or one who is
judging things based on long ago experience, find a realtor who knows today's VA program
and save your CASH for other things.
14. There is NO mortgage insurance. With an FHA loan the mortgage insurance can cost you up
to $50,000 more over the life of the loan. Don't let any realtor tell you its cheaper to use FHA.
OK, I'm a proponent of VA loan. I'm dealing with a house sale today using VA and TLB. I've helped several veterans save interest, which means lower house payments. A FHA loan can have $140 in mortgage insurance per month, why pay that if you qualify for a VA loan. Isn't it worth waiting 15 extra days to close to save $50,000 in mortgage insurance AND have NO out of pocket costs and walk away from the closing table with $$$.
If you are a veteran, and you are going to buy a home, be sure and use VA for your mortgage.
