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Unveiling the Power of VA Loans
Manage episode 381405658 series 3524770
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Are you a veteran looking to purchase a home but need help knowing where to start?
Join Richard as he discusses the many advantages of VA loans and why veterans often overlook them. He dives into the myths that surround VA loans. He reveals why they have a lower denial rate than conventional or FHA loans, better portfolio performance with a lower default rate, and can often be cheaper for the veteran due to closing cost caps. He'll also talk about how putting nothing down doesn't make veterans weak buyers and how they can dispute the value if an appraisal comes in lower than the list price. Additionally, he'll cover closing costs charged to veterans and how they can work with inspectors and title companies to eliminate or lower escrow fees.
Tune in to learn why VA loans may be the best option for you when it comes to purchasing a home!
[00:01 - 06:58] Why VA Loans Are Better Than FHA and Conventional Mortgages
VA home loan denial rate is 6.5%, compared to 9.6% for conventional and 10.2% for FHA loans
It has better portfolio performance with a default rate of 1.98%
Closing costs are capped at 1%, with the average net charges and credits being 878
VA loans are cheaper and more beneficial for veterans than other loan types
[06:59 - 08:32] Understanding the Benefits of VA Loans and How to Rebut Appraisal Values
If the house comes in for less than the list price, they can pay the difference
VA loans have two options to get appraisal value back up to the list price
Sellers don't have to worry about non-allowable costs if total fees to veterans are under 1%
The origination fee is usually less than 1%, so there is no issue for the seller
A non-veteran spouse can be on a loan with some down payment requirement
Quotes:
"We need to understand exactly what our VA loan can do for our client and our VA community and help them become homeowners." - Richard Sarey
"Don't listen to the noise about the VA loan being horrible because they're putting nothing down. It takes longer to get through underwriting. It takes longer to get the appraisal, or the appraisal is always low." - Richard Sarey
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