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
541.302.3210
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