VA Home Buyers

For Active-Duty service members, Veterans and their families, buying a home is one of life’s most important investments and exciting adventures. You have unique housing needs and planning an “exit strategy” when it’s time to sell takes careful planning. I've put together an overview to explain tips every VA buyer should know before beginning the journey to homeownership.

NO DOWN PAYMENT IS REQUIRED

One of the single biggest advantages of a VA loan is that qualified buyers can usually finance 100% of their primary home’s sale value.

NO DOWN PAYMENT DOESN'T MEAN $0 TO BUY YOUR HOME

While you aren’t required to have a down payment with a VA home loan, you will still need to plan ahead for closing costs and other out of pocket expenses (ie; home inspections and appraisal fees). The average home inspection cost for a property under 2,000 sq. ft. is $455 and appraisal costs range between $600 to $1,000.

FOCUS ON CREDIT

Regardless of the minimum credit requirements needed to qualify for a loan, it’s important to have a credit history. You can typically qualify for a VA home loan with a credit score as low as 620. Keep in mind that the lower your credit score, the more you could be paying for the money you borrow.

JOB GAPS COULD BE A PROBLEM

In order to qualify for traditional home loans, Lenders typically want to see that you’ve been at your current job for at least 2 years. If you have any job gaps, a VA-savvy Lender can take a closer look to determine options based on your particular situation.

MAINTAIN YOUR EMPLOYMENT

If job gaps aren’t a concern, let’s focus on maintaining stable employment throughout the home buying process. Your loan isn’t guaranteed until the closing process is complete, regardless of any paperwork you’ve already signed.

YOU CAN'T BORROW MORE MONEY

You can’t be approved for a loan amount higher than the appraised value of the property you’re purchasing; however, you can bring extra money to the table to cover gaps, if any, between the agreed upon purchase price and property's appraised value.

EXPLORE ALL OF YOUR LENDING OPTIONS

VA home loans are great for those who are looking for a loan with no down payment and limited closing costs, but there might be benefits to using other loan options. Some examples of these include FHA, USDA and conventional loans.

CONTINGENCIES ARE KEY FOR YOUR PROTECTION

When drafting your offer, it’s important that your assets are protected. Addendums can be incorporated to provide additional protections.

BE MINDFUL OF VA PROGRAM OCCUPANCY REQUIREMENTS

The VA home loan program has occupancy requirements, because it’s designed for primary residences. VA buyers are also generally required to occupy the property they purchase within 60 days of closing. This doesn’t mean you can’t purchase an investment property.

A VA LOAN IS REUSABLE

Once you completely pay off a VA home loan, you regain your full VA eligibility and can reuse it for another VA home loan.

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