VA Loan Perks, New Atlantic Bay FHA DPA Program

May is when we celebrate our service men and women through Military Appreciation Month and Memorial Day. This month, I talk about just some of the many benefits of VA Loans for your military clients. But first, I’m excited to announce Atlantic Bay’s new Buyer Boost FHA Down Payment Assistance Program!

New DPA for Your FHA Borrowers 

After overwhelming positive feedback and interest in the Chenoa Fund DPA for FHA Loans, Atlantic Bay has launched an additional down payment assistance option, Buyer Boost FHA Down Payment Assistance. Like Chenoa, this program combines an FHA-insured 30-year first mortgage with a 10-year repayable second lien to help cover the required FHA 3.5% down payment. That’s 100% financing! Buyer Boost and Chenoa both offer 5% DPA options as well. 

The DPA can also be used for closing costs and prepaids, including items paid outside of closing, and clients can combine the DPA with the FHA’s settlement cost allowance (up to 6%) to save them even more at the closing table. There are no income limits, and they don’t have to be a first-time homebuyer! Ask me how to get your clients started with this great benefit. 

The (Many) Perks of VA Loans 

With no down payment, no mortgage insurance, and no loan limits or purchase price limits for borrowers with full entitlement, U.S. Department of Veterans Affairs (VA) Loans are geared to help our nation’s qualified military, veterans, and surviving spouses achieve homeownership. But did you know about their other incredible benefits?

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

New, lower funding fees: The funding fee is an upfront payment VA borrowers make (rolled into the loan) to help offset the loan’s cost to taxpayers. As of April 7, 2023, VA purchase, construction, and cash-out borrowers will pay 0.15-.3% less in funding fees, depending on down payment and first or subsequent use. If your client is considered 10% or more disabled, the funding fee is waived.

Generous credit score minimums: The VA requires a minimum score of 580. Atlantic Bay accepts VA applicants starting at 600, but we are happy to help any Veteran client build their credit through guidance and rescoring.

VA clients can pay for the required termite inspection: This 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. Now your client doesn’t need to worry about their contract being rejected due to the seller’s being responsible for the inspection. Vets can pay for moisture inspections, too.

PS, the VA does not require standard home inspections. But they’re recommended for your buyers 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. Also, two unmarried Veterans can split eligibility.

Can be combined with certain other programs: If your military client is using a first-time homebuyer program, they may be able to receive additional benefits. For example, in Virginia:

• VHDA offers 2% in closing cost assistance.

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

Atlantic Bay offers E-closings: No matter where your military client is stationed, 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!