If your home is for sale, don’t discriminate against buyers using a VA (veterans loan) product. VA loans have changed over the years. Gone are many if not all of the requirements for the seller to financially participate on the buyers’ behalf. VA loans are government guaranteed just like FHA loans are. In fact, they use the same loan limits but generally have better rates than FHA loans. Also, VA loans don’t have the mortgage insurance requirement that FHA loans have. What this means is the borrower or veteran is in a much better position to be able to actually afford the home.
Some interesting facts. VA loans have a low 1.9% foreclosure rate. California is #1 in veterans who would be eligible to use their loans yet only 34% of them take advantage of the program. Using the program isn’t for the faint of heart. If you have a good lender who understands VA loans and a Realtor that is going to educate the seller about VA loans so your offer is ratified you could become a homeowner sooner than you think.
Sometimes veterans don’t understand how to utilize a VA loan either. Many don’t know they can rent a property even if it is has negative equity and move up to a better home. VA loans can be used more than once. If a house price is over the specified loan limit a VA loan can still be used if the borrower can put 25% of the difference down as additional down payment.
If you are a seller, please give consideration to our veterans and consider their offer just as you would any other offer. In the end the home will still be sold!