VA-Approved Lenders and Real Estate Agents
Table of Content
Veterans Affairs loans were introduced in 1944 as part of the GI Bill of Rights Act to ease the transition from a life in uniform to civilian life. The advantages of using these are many and include no down payment requirements and lower interest rates. If there were only upsides to using a real estate agent with a VA loan, then every home buyer would use them.
Either the new homeowner or the original homeowner is responsible for paying the closing and funding fee. The buyer must meet the lender’s defined credit score requirement as part of the qualification requirements, which usually range between 580 and 660. In addition, the buyer must also have a debt-to-income ratio of less than 41%. Personal financial documents will be required so the lender can determine whether you can afford the loan and your creditworthiness.
Main pillars of the VA home loan benefit
Sellers pay your real estate agent’s commission in most transactions. That means buyers pay no additional cost out of pocket for an agent’s expertise and service. Agents can help you quickly locate potential properties and expertly negotiate the terms of your purchase contract.
Veterans who qualify for VA home loans are willing to accept the seller’s eligibility in exchange for the new buyer’s. Find out if you can get a VA-backed IRRRL to help reduce your monthly payments or make them more stable. Find out if you can get a VA-backed purchase loan and get better terms than with a private lender loan. If you’ve served for at least 90 continuous days , you meet the minimum active-duty service requirement. You may be able to get a COE if you didn’t receive a dishonorable discharge and you meet the minimum active-duty service requirement based on when you served.
Loan Volume Data
Sellers ideally want the “substance” and speed to close of an all-cash offer – no appraisals or financing to get in the way the closing. They prefer a thick &juicy conventional offer vs. a VA buyer with no “skin in the game.” VA zero down and zero closing costs represent a limited commitment in the seller’s eyes. Doing so not only lowers the principal loan amount and saves you money over the duration of the mortgage, but it also lowers the VA funding fee depending on how much money you put down.
Sellers don’t like the “VA non-allowable” closing costs that must either be paid for by the lender or paid for by the seller, thereby increasing the seller’s closing costs. Sellers prefer the strong commitment of LARGE earnest money escrow deposits from all-cash buyers and juicy conventional offers. VA buyers tend to offer slim earnest money deposits to escrow – smaller commitment. You should be aware that there are some differences in the VA loan appraisal process. “Not all appraisers are certified to do appraisals for VA borrowers, so the appraisal has potential to be delayed just due to the unavailability or lack of VA appraisers,” says Viola.
Interest Rate Reduction Refinance Loan (IRRRL)
Through VA loans, veterans are able to purchase a home without needing a down payment. And, even though veterans finance 100% of the market value of their home, they don’t have to pay private mortgage insurance. VA direct and VA-backed Veterans home loans can help Veterans, service members, and their survivors to buy, build, improve, or refinance a home. You’ll still need to have the required credit and income for the loan amount you want to borrow. But a Veterans home loan may offer better terms than with a traditional loan from a private bank, mortgage company, or credit union. For example, nearly 90% of VA-backed loans are made with no down payment.
An agent who has more experience working with VA borrowers may understand the VA loan process better. While agents may recommend a favorite lender, it’s ultimately the borrower’s responsibility to choose a lender that is experienced in VA loans. If the client’s eligibility in the program does not change and their mortgage loan does not close, they will receive $1,000. This offer does not apply to new purchase loans submitted to Rocket Mortgage through a mortgage broker. Rocket Mortgage reserves the right to cancel this offer at any time.
Our Veteran friendly real estate agents produce results!
To better assist your VA-loan clients, you should make sure they have access to all of the information they need. You should do everything you can to become your clients’ go-to resource for anything they may need during the process. Just as you probably have a contractor, designer and plumber that you refer to your clients, you should also have a lender you trust on hand.
Are you a Native American Veteran or a Veteran married to a Native American? Find out if you can get a loan through our NADL program to buy, build, or improve a home on federal trust land. You may be able to get a COE if you meet at least one of these requirements.
If you are an United States veteran or active duty service member, then you have earned these benefits. Our VA Home Certified mortgage lenders are the backbone to getting veterans the benefits they deserve. The assumption of a VA loan is a good option if you are a seller seeking to get out of your mortgage quickly.
Decide how much you want to spend on a mortgage—and be sure to include closing costs in the overall price. You’ll go through a private lender, like a bank or mortgage company, to get this loan. We’ll guarantee part of the loan against loss, which will allow your lender to give you better loan terms, like the option to pay no down payment. Your length of service or service commitment, duty status and character of service determine your eligibility for specific home loan benefits. Rachel Burris is a writer covering topics of interest to present and future homeowners, as well as industry insiders.
As such, the property must include a living area with suitable space for a kitchen, bathroom and bed. To help you gain more confidence in your ability to help our soldiers, we’ve gathered information on everything you should know about working with VA-loan clients. Are you interested in learning more about how you can help someone who has bravely served our country?
Additionally, a loan officer who handles VA loans day in and day out may be more experienced in managing special cases that can sometimes delay the VA loan process elsewhere. Veterans who are eligible for VA home loan benefits and in the market for a new house can utilize lenders and real estate professionals to their advantage. When you assume a mortgage loan, it is essentially the same as a sale-purchase agreement. The seller transfers the terms, interest rates, and mortgage balance remaining from the previous owner to the buyer. When buyers assume the previous owner’s mortgage, they won’t have to take out a new loan to pay for the property. Veterans United's mission is to help Veterans and service members take advantage of the home loan benefits earned by their service.
Comments
Post a Comment