Friday, February 14, 2014

Top 10 reasons to LOVE Federal VA Home Loans

Eric's Top 10 reasons to LOVE  Federal VA Loans:

1 – Zero down payment required up to $417,000.

2 – No private mortgage insurance.

3 – Seller (or Lender) may pay all buyers closing costs/pre paids.

4 – Relaxed credit standards compared to other loan types.

5 – Seller is not required to pay any points.

6 – Lower interest rates than many other loan types.

7 – Energy Efficient Mortgage add on available to improve home.  To see our other blog on the EEM program Click Here.

8 - An assumable loan if veteran sells later on.  A big advantage if rates rise over time.

9 – Jumbo VA loans available over $417,000 w/some down payment required. 

And my personal favorite…

10 – Seller is allowed to pay up to 4% of the sales price towards any buyer debts and may even buy veterans gifts like a microwave, fridge, etc.  Think about the possibilities for a minute…the seller is allowed to pay off buyers debts so they may qualify to buy the home!  They can even payoff a veteran’s judgments and collection account(s).    

And here's 5 more just for good measure:

11 - 1 in 4 buyers can go VA.  Don't be afraid to ask.  We ask every client, every time.  Men AND women.

12 - Flexible property types.  I have 20+ years of examples of deals that went VA that never would have closed FHA.  Some still leave me shaking my head... An old farmhouse w/a "seasonal creek" running through the middle of the basement?  Loan closed.  True story.  

13 - A lifetime entitlement.  Lots of misconceptions about this one but federal VA loans allow a veteran to use his/her entitlement multiple times over their lifetime.  In simplest terms a vet buys home #1 with a VA loan, sells it after a few years and then buys home #2 with a new VA loan, sells it after a few years, repeat...There is even an allowance that let's a veteran finance a home w/a VA loan, then later refinance it to another loan type (typically conventional after some equity develops) and then restore their entitlement so they can keep their first house as a rental and buy a new home using VA again.  This can only be done once however as VA is not designed to finance investment properties.

14 - VA offers a very good 5/1 A.R.M.  While many people shy away from variable rate loans VA protects the veteran and the lender by offering this hybrid A.R.M.  Fixed rate and payment for the first 5 years then it becomes variable.  I'm not a huge fan but I mention it in cases where someone plans to move or payoff their loan w/in 5-7 years.

15 - This really should be #1... What better way to say thank you to a veteran for their service than to offer them great service and a great loan when they buy their home?  

Eric Lundberg - NMLS #261588
President, Chinook Mortgage Ltd - NMLS #261588

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