May Real Estate Roundup: A Salute to Veteran Benefits

U.S. Department of Veterans Affairs (VA) Loans offer incredible advantages to help our nation’s great military, veterans, and surviving spouses achieve homeownership. For Military Appreciation Month, let’s take a quick look at the basic benefits, including some you may not be aware of! 

VA Loans Vs. Other Programs 

You probably already know VA loans come with:   

• No down payment (although your client can make one to borrow less money) 

• No mortgage insurance 

• No loan limits or purchase price limits for borrowers with full entitlement 

Additionally, interest rates for VA buyers are typically lower than FHA or Conventional programs. Veterans can also qualify for higher debt-to-income ratios compared to other loan programs, as long as they meet residual income requirements. 

Additional Perks 

Funding fees instead of mortgage insurance: The funding fee is an upfront payment VA borrowers make (rolled into the loan) to help offset the loan’s cost to taxpayers. Unlike ongoing mortgage insurance, the funding fee is a one-time payment. And as of April 2023, VA funding fees were lowered by 0.15-.3%, depending on any down payment and first or subsequent use. PS - if your client is considered 10% or more disabled, the funding fee is waived. 

Lower credit score minimums: The VA does not have a credit score minimum, but lenders still require borrowers to meet standard qualifications for a loan (credit, income, etc.). Atlantic Bay accepts VA applicants starting at 600, but we are happy to look at your client’s situation to create a path for qualification. 

VA clients can pay for the required termite inspection: Why is that good news? It gives you negotiating power. Previously, military borrowers could not be charged for this required inspection (around $100), which could cause frustration in the contract negotiations and closing. Vets can pay for moisture inspections, too. Remember, the VA does not require standard home inspections, but we highly recommend them unless the home is new and under builder warranty. 

Multiple loans, multiple uses: VA Loans can be used more than once, and borrowers can carry more than one VA Loan at a time (depending on eligibility and entitlement). Veterans can assume other Veterans’ loans, and two unmarried Veterans can split eligibility. 

State VA programs: State housing agencies also offer help for military clients, including down payment and closing cost assistance. For example (continuing with Virginia), the VHDA: 

• Offers VA loans with a Closing Cost Assistance Grant (meaning it doesn’t have to be repaid!).  

• Some Vets who qualify may receive 100% financing.  

• Virginia’s Granting Freedom Program provides home modifications for disabled Veterans and service members who sustained a line-of-duty injury resulting in a service-related disability. 

• Real estate taxes are waived for 100% disabled Veterans.  

Many state and government agencies also offer programs (often called “Heroes”) that offer extra benefits and credits to military members. Ask me if your client’s state has these programs. 

Close from Anywhere 

No matter where your military client is serving, Atlantic Bay offers E-closings! We can work with them to do all or most of their closing remotely. 

I’m honored to help military borrowers, and all your clients, achieve homeownership. Reach out today, and let’s talk!