Friday, June 10, 2016 / by Kristin & Mark Stampini
VA Loan Myths
Wouldn’t You Want a Veteran to Purchase Your Home for Sale?
American veterans or their surviving spouses are offered a great home financing option for a VA loan. Veterans can purchase a home with no down payment which is a great option to have. However, we have noticed that home sellers are hesitant to accept offers on their homes with VA financing. Many homeowners feel buyers that are applying for a VA loan are not ‘strong enough’ since they are usually not required to have any money towards a down payment. Sellers also believe they have to pay for closing costs, inspector fees, or anything else that may come up during the home-buying process.
Myth #1: VA Appraisal & Inspections are Nightmares
VA can’t buy a home in “POOR” condition otherwise, the appraisal is similar to the conventional loan appraisal. A VA appraisal does have to be ordered by the VA, which can take up to two weeks to complete.
They look for the home to be “SAFE”, roofing must be adequate with at least two years of life left, plumbing and electrical safe and in good condition, loose paint scraped and repainted no leaks or defective construction or decay, no dry rot, fungus growing, destructive insects or termites. The VA loan is not designed to use for a fixer-upper home, if the home is in good and safe condition then there should not be any issues, VA does require a clear termite report.
Myth # 2: VA is a Terrible Loan Product
FALSE. It is one of the best products on the market.
The VA mortgage product offers 100% financing to our VA’s, provides a higher debt to income qualifying ratios which allow more people to qualify for this loan, there is no monthly mortgage insurance like an FHA loan and the interest rates tend to run lower on government-backed loans.
Myth # 3: No Down Payment for a VA Loan Makes These Loans Risky
VA Loans have been the safest loan on the market since the housing crash. Despite the zero down payment, VA loans have had the lowest foreclosure rate of any mortgage type for a while.
Myth #4: VA Loans Take Too Long to Close
There is a misconception that VA loans take forever to close. VA loans can close fast! VA loans still can be closed in 30 days if it is properly structured and the client provides documents in a timely manner. VA loans can close in the same timeframe as any other loan. Instead of telling sellers incorrect information, support our Veterans and the benefit of home ownership, and being able to live the ‘American Dream’.
To see how much you can afford you can use a VA mortgage calculator located Here.
Click Here for More Buyer Tips – The First 20 People Will Receive a "FREE" Copy of the Book I Wrote and Published, “What Every Person Needs to Know about Selling a House”
Author: Kristin Stampini – CEO Florida Platinum Group – RE/MAX Services