VA Loans

I was recently talking with the Buyer’s agent when we were closing Escrow on one of my listings.  He off-handedly mentioned that his client had served in the Army during Desert Storm.  Since they had used a conventional loan, I asked why they hadn’t used a VA loan.  He said, “Well, I thought your Seller might pick up any termite work needed, but I didn’t think he’d pick up the closing costs that VA won’t allow the Veteran to pay, and I certainly wasn’t going to pay them, so we went Conventional.”

As someone who served 29 years on active duty in the US Air Force, I was dumb-struck!  When I asked some of my other agent friends, I discovered that none of them will touch VA for the same reason.  I know these fees can be around $8-$10K, but I thought we were supporting our Veterans?  As a result, I thought I’d let everyone know that I will always handle a VA loan, and I DO pick up those fees.  Well, me and my Loan officer.

A VA loan will always have a lower interest rate than a Conventional loan, even when the Buyer is putting 20% down!  There are other benefits to a VA loan as well.  For example, a Veteran with a 680 credit score will often be able to secure a loan that’s a quarter point lower than a Conventional Buyer with a 740 credit score.  In addition, Conventional Buyers have a debt-to-income limit of 45%, where the VA Buyer’s debt-to-income limit is greater than 50%.  Another benefit of a VA loan is that there’s no monthly mortgage insurance required, saving the Veteran hundreds of dollars per month in mortgage payments.  Finally, a Veteran can qualify for up to $687,500 on a VA loan in LA and Orange Counties, where the loan limit for Conventional and FHA Buyers is $625,000.

So, if you’re a Veteran, or know a Veteran, who’d like to buy a home, using their VA benefits, I’d love to talk to you.  I feel it’s a privilege to take care of those who serve.  Oh, and for those who have a VA loan tied up on another property, there’s a good chance I can get that Veteran another VA loan.  Yes, no joke...a second VA loan!  I’ll be more than happy to explain how we can get that accomplished when I speak with the Veteran.