How A VA Loan Expert Can Help You Maximize Benefits
By: Steve Gouveia and Mike Thompson
Did you know that the VA Loan is, hands down, the best type of loan offered? In terms of benefits and costs, few loans can beat it. However, most of the veterans we work with don’t know specifics about the VA Loan, the many benefits it offers, and how to take advantage of them. Many do not even know they qualify.
As VA Loan experts, we routinely help people navigate the process. Based on these experiences, we’ve compiled a list of 10 facts most veterans don’t know – but should – about the VA loan.
1. You could get 100% financing!
While most traditional loans require a down payment, VA loans do not, and the best part is there is NO mortgage insurance required on a VA loan. This means it is much easier to get into a house and still have very low payments
2. Any veteran or their spouse/widow can take advantage of the loan.
If you or your spouse served in the U.S. military, then you’re eligible for the loan. Extended family members are not eligible, however.
3. Rates are the same or better than normal loans.
Because VA Loans have a very low default rate, lenders love to give them. Therefore, they are willing to give great rates.
4. The VA Loan is not a bigger hassle on the borrower.
For some reason, many vets make the assumption that taking out a VA Loan is much more difficult than a normal loan, when, in fact, it is not. There is much more underwriter discretion, so a knowledgeable loan officer can make life much easier for you.
5. There can be far fewer fees and costs than a normal loan.
There is no mortgage insurance required, and there are usually fewer fees levied on the borrower because the VA Loan disallows them or requires the seller to pay. For example, sellers are required to pay for a termite inspection.
6. You can use the loan multiple times, but usually only for primary residences.
If you’ve already taken out a VA Loan to buy your home, you can still use it down the road if you decide to move and buy another primary residence. There is a possibility of using it more than once while still living in your primary residence, but there are many restrictions that we’d be happy to discuss with you.
7. You don’t have to go to the VA or USAA for the loan.
It’s a common misconception that the VA loan is a government loan or that to get it you have to go to USAA. In fact, it’s a normal loan that’s backed by the VA and has significantly more benefits than any other loan. So, Mike Thompson and Steve Gouveia, two of our VA Loan experts here at Envoy, can handle it for you.
8. Refinancing is a breeze.
The VA loan has what’s called an Interest Rate Reduction Loan (IRRL). It’s the easiest refinance process we can do compared to other loans. You can also do what is called a “cash-out refinance loan,” which allows you to take out a loan for 100% of the value of the house in cash.
9. Seller’s assistance is virtually unlimited.
Traditional loans usually allow 6% seller assistance to help pay for the costs of the loan. While technically the VA Loan only allows 4% direct assistance toward the loan, because it allows unlimited seller concessions the costs can be lowered significantly. For example, a seller can pay down other debt for the buyer to help qualify for the loan.
10. You can be 100% exempt from property taxes if you are disabled.
Did you know that if a Veteran is 100% disabled they do not have to pay property taxes? We can show you how to take advantage of this amazing, but underutilized opportunity. This requires an application after purchasing the house, but we can help with that.
As you can see, there are many benefits to the VA Loan, and this list is by no means exhaustive. If you are a veteran or the spouse of a veteran and you have questions, Mike and Steve are ready to help.
