Did you know...75% of vets want to own a home when they return from service. The minimum property requirements (3 S's): safe, structurally sound, and sanitary. VA loans are financed at 100% but Buyers cannot roll closing costs into the loan. Seller's concessions can not exceed 4% of the loan. Almost all Buyers (except disabled Veterans) pay the VA funding fee, which is a percentage of the loan. Paid Outside of Closing (POCs) are fees that can be negotiated by either party. There are different appraisal methods, and VA appraisals use the Sales Comparison method. Many veterans do not qualify for conventional loans due to the down payment. With VA loans, there is no down payment, no mortgage insurance, lower closing costs, interest rates, credit score requirements, and flexible underwriting.The Department of Veterans Affairs' Certificate of Eligibility (COE) is important: As of 2017, Buyers can purchase up to $417,000 without a down payment in most parts of the country with a credit score of 620. The COE specifies the dollar amount of eligibility. There is a VA amendment to each contract allowing Buyers to walk away if the property does not appraise.
Did you know...
75% of vets want to own a home when they return from service. The minimum property requirements (3 S's): safe, structurally sound, and sanitary.
VA loans are financed at 100% but Buyers cannot roll closing costs into the loan.
Seller's concessions can not exceed 4% of the loan. Almost all Buyers (except disabled Veterans) pay the VA funding fee, which is a percentage of the loan.
Paid Outside of Closing (POCs) are fees that can be negotiated by either party.
There are different appraisal methods, and VA appraisals use the Sales Comparison method.
Many veterans do not qualify for conventional loans due to the down payment. With VA loans, there is no down payment, no mortgage insurance, lower closing costs, interest rates, credit score requirements, and flexible underwriting.
The Department of Veterans Affairs' Certificate of Eligibility (COE) is important: As of 2017, Buyers can purchase up to $417,000 without a down payment in most parts of the country with a credit score of 620. The COE specifies the dollar amount of eligibility.
There is a VA amendment to each contract allowing Buyers to walk away if the property does not appraise.
Either the Buyer or seller can pay the credit report, VA appraisal, and home inspection.
Military members and veterans can use VA loans several times and they can have multiple VA loans at the same time depending on the amount of entitlement used in the first home.
There are no pre-payment penalties with VA loans.
The buyer can’t pay the termite/pest inspection, certain lender or closing fees.
These fees (except termite/pest inspection) often can be covered with a lender credit.
I can recommend a local lender who is accustomed to the local process. Some banks cover certain fees so with local lenders, it’s less cumbersome for parties to come to terms. Internet or out-of-state lenders often don't have insight of the local process and market. If you need a good local lender who is familiar with VA loans, please give me a call!
Realtors: be careful not to violate Fair Housing Laws; do not discuss age of the residents in a neighborhood or family status.
The VA loan process:
1. Obtain mortgage pre-approval.
2. Find the house, sign contract, and get VA appraisal.
3. Lender re-examines Buyer's qualifications
4. Loan either receives "conditional approval" or "clear to close."
VA loans take around 45 days to close from the contract date.
This information on VA loans is from my 2017 Realtor continuing education training in Florida.
Call Linda Holley, Realtor, GRI, Sarasota, Florida, 941-914-4914 for your Sarasota real estate needs and for a referral for a great local VA lender.
Most sincerely yours,
Linda
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