Home Loans for Veterans – Take Advantage of Your Benefits

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Home Loans for Veterans - Take Advantage of Your BenefitsMilitary families often face challenges when it comes to the home buying process, such as struggling with poor credit or trying to come up with a down payment.

Fortunately, home loans for veterans help to alleviate this burden by providing financial accommodations that pave the way to buying a new house.

While you may be modest about your veteran status, being willing to accept recognition for your sacrifices allows you to take advantage of these benefits as you search for the perfect new home.

Stop Worrying About a Perfect Credit Score

The Department of Veterans Affairs only backs the loans instead of issuing them, which means that they are not concerned about checking credit scores.

For this reason, VA loan lenders tend to be more relaxed about the credit scores that they require from people using this benefit.

You will also find that they are more forgiving of blemishes on your credit report from the past, such as foreclosures, provided that you can explain how you have improved your financial responsibility.

Home Loans for Veterans: Get Into a Home Faster With No Down Payment

The rising costs of houses today has made it extremely difficult for many military families to come up with tens of thousands of dollars for a down payment. Home loans for veterans are available with zero down payments required for qualified buyers.

While you can still put down payment if you’d like, being able to skip saving up money for years allows you to ditch the rent cycle and get into a new home right now.

Enjoy Cost Savings That Help You Afford a Better House

A huge part of your home buying budget involves planning to pay for the interest on your mortgage, closing costs for your new home and the monthly mortgage insurance.

Home loans for veterans help you get lower interest rates than you would get with a conventional loan, and you will have the opportunity to negotiate your closing costs.

In many cases, you will not have to pay the closing costs and the associated fees at all.

When you take these savings into account, along with the ability to opt out of mortgage insurance, you can have a considerably larger amount of money to put toward paying the mortgage on a better house.

Pay Off Your House Early with No Penalties

For non-military families, paying off a home loan early can still be costly, since prepayment penalties are often in place to protect lenders from losing years of interest at once. If you plan to pay off your house early, having a VA loan protects you from prepayment penalties, so that your dedication to paying down your debt is worth it.

Take Advantage of This Benefit for a Lifetime

Many people think that this is just a onetime benefit. However, you can continue to reapply for this type of loan as needed for the rest of your life.

Whether you are ready to upgrade to a larger home for your growing family or need to downsize, you can take advantage of a VA home loan at any time.

As a veteran or active member of the military, you have worked hard to serve our country and protect the freedom of every U.S. citizen. Now, you have the opportunity to take advantage of benefits that you have earned through your time in service.

Other than proving your eligibility, the application process for a VA loan is much like the other types of loans, so go ahead and get started planning to save money on your new home today.


VA Appraisal Process-Is it Really That Bad???

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The VA Appraisal process is takes too long!

The VA Appraisers are more conservative than other conventional appraisers!

The VA will nit-pick the condition of the property!

These Claims are NOT True!

Throughout the last 8 years serving Veterans and Active Duty Military with all of their VA Home Financing needs I continue to encounter one reoccurring claim within the real estate community that still lingers and has a real impact on Veterans and Active Duty Military. That claim is that the VA Appraisal process is terrible.

Claims such as those listed above are what I hear pretty much on a daily basis, often times proving to have detrimental impact on the Veteran or Service Members and their families, who may ultimately be passed up by a seller afraid to accepting their offer.

Here are the Facts

Please, please, please, understand that if claims such as these were true I would probably be out of a job due to the fact that the overwhelming majority of my clients I serve are Veterans and Active Duty Military!

The VA Appraisal process takes no more than 7-10 business days and sometimes sooner.

The VA Appraisal Process uses the exact same market comparable properties just as any other appraiser would.

VA Appraisers ensure that the property is safe, and that no real safety hazards exist.

Having said that, my experience has been that those that make such claims do not fully understand the VA Appraisal process and what it is designed to do.

What the VA Loan Process is DESIGNED TO DO

First off, the VA Appraisal process is designed to protect the Veteran, ensuring that they do not overpay for a property, and in the event that they are, give them an opportunity to legally withdraw of the transaction with no recourse (sounds like a good deal to me).
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The VA Appraisal process is unlike any other appraisal process that exists which makes it (in my opinion) extremely advantageous for the Veteran and Active Duty Service Members.

Let’s take a look at how it works.

  1. First off, understand that the VA Appraiser that goes out to inspect the home does not work for the VA. The VA Appraiser is an independent contractor, licensed by the Department of Veterans Affairs, who will perform the task of appraising the property to ensure that the home meets the contracted sales price, as well as confirm that the property is safe, sanitary, and secure.
  2. Once the VA Appraiser has inspected the property he or she will then upload that VA Appraisal to the VA Website commonly referred to as the VA Portal. Once this takes place your lender will then be able to go in and retrieve a copy of your VA Appraisal once the Senior Appraisal Reviewer (SAR) issues what is called the Notice of Value (NOV). If you have made it this far that means your property has appraised with no value issues.
  3. Let’s take it a step further… Let’s say the VA Appraiser goes out to inspect the property and is having trouble meeting the contracted sales price. The VA Appraiser will then issue what is called a Tidewater Notice. The Tidewater Notice is designed to notify all parties involved in the transaction that they are having difficulty coming up with the contracted value on the home from their research.From here the Veteran or Service Member has options.

— If they feel the property should meet the agreed upon purchase price they can notify their Realtor to provide additional comparable properties that justify the value of the home.

— Or, if they choose, they can also tell their Agent to instruct the VA Appraiser to issue the appraisal at the value VA Appraiser had before reviewing the additional comps.

Here is What I Like About the VA Appraisal Process

The Veteran has options on the VA Appraisal process. In the competitive market that we are in today it’s not uncommon for sellers to aggressively price their homes. Sellers should understand that the VA Appraisal process is the only type of appraisal that will allow them to make a case for the value of their property. FHA and Conventional home loans simply issue value, and more often than not call it a day.

Bringing us home (pardon the pun), I am sure that there has been some bad apple appraisers out there in the past that have brought some negative PR to the VA Appraisal process. But honestly, it is not anywhere near as bad as many paint it out to be. The reality is that the majority of Veterans and Service Members that buy their home with a VA Home Loan have no issues at all.

Dare I say that if I were a seller I would encourage a VA Home Loan for the reasons listed above? Not to mention, the VA Appraisal process does not make you order 2 appraisals like FHA loans when purchasing a property that as been owned less than 90 days by the seller.

If you feel like you are not being explained the VA Appraisal process like you should…That’s what we are here for, to serve YOU!

Please call us at 602-908-5849 or email me at jimmy@valoansforvets.com for all of your VA Appraisal process questions.

Most of all, thank you for your service to our great country.

Semper Fidelis,
Jimmy Vercellino

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More than 1 VA Home Loan at a Time? Yes, it’s True!

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Many veterans have no idea they are actually able to use more than one VA home loan at a time. Yes, it’s true! A Veteran may actually have more than one home loan at a time. How can this be, you ask? It’s called VA Bonus Entitlement. Simply stated, as long as you have sufficient VA Entitlement for the VA home loan, you can have more than one at a time. There are a lot of Veterans out there today that would love to be able to purchase a new home – in a more desirable location, better school district, with more square footage – who have no idea that they really can. Let’s take a look at an example below.

A Veteran buys a home with his or her VA home loan in 2006 for $150,000 and would love to take advantage of the market that we are in today. Our Veteran can actually rent out their current home and use that rental income to offset that mortgage payment up to 75% . Most mortgage products will require you to have 25% equity in the home or you must have rented out that property for two years to do this, but not with a VA Home Looan. Our Veteran now has the ability to go out and shop for a new home with their VA Home Loan from $144,000 up to $267,000 with NO down payment! As a Veteran, you must have sufficient VA Entitlement available and the home being purchased must be owner-occupied. [This summary is based on a $350,000 loan amount, loan term of 360 months and an interest rate of 4.5%.]

Are you interested in seeing if the VA Bonus Entitlement is something that you are eligible for? Give me a call – I speak your language and I know what it means to serve.

Semper Fidelis,
Jimmy Vercellino


The Arizona VA Jumbo Home Loan..Yes, it’s True!

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The Arizona VA Jumbo Home Loan.
Many veterans do not understand all of the benefits that exist when it comes to their Arizona VA Jumbo Home Loan. Truth be told, many lenders don’t either… so if lenders are confused, how then do we expect our veterans to know. Sadly, many don’t. This statement cannot hold more truth when it comes to the Arizona VA Jumbo Home Loan. The Arizona VA Home Jumbo Loan is probably one of the most competitive, if not the most competitive Jumbo loan products that exist on the market today. Most Jumbo loans that are available today require down payments of 20% or higher. However with the Arizona VA Jumbo Home Loan this is not the case. Let’s take a look at an example.

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Purchase Price: $750,000 VA Down Payment Requirement: $83,250
That’s a down payment of around 11%* . You might be wondering how I came up with that down payment amount? It’s quite simple really. VA Max Guarantee for Maricopa County is $104,250. Both lender and VA require that the loan be guaranteed by 25%. In this case the $104,250 (VA Guarantee) + $83,250 (Veterans Down Payment) = 25% of $750,000 thus giving you an insured VA Jumbo Home Loan. I can assure you that you will not find a lower down payment out there when it comes to a non-VA Jumbo Home Loan. So if you are in the market for your dream home and never considered using your VA Jumbo Home Loan, it’s time to reconsider. Feel free to call or email to see if this product is the right fit for you.

*This summary is based on a $666,750 loan amount, on a loan term of 360 months, with an interest rate of 4.25% and an annual percentage rate of 4.250%.

To see if you are qualified for your Arizona VA Jumbo Home Loan call me today at 602-908-5849!

Thank you and May God Bless you for your Service to our Great Country.
Semper Fidelis, Jimmy Vercellino


2 Documents that a Veteran Must Have when Applying for a VA Home Loan.

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Many Veterans know that serving honorably in the military offers benefits of different varieties. However, what a lot of veterans do not know is how to take advantage of them, or even where to start. The VA Home Loan is no exception to this. So if a veteran is interested in obtaining a VA Home Loan, where exactly do they start? The first order of business that you need to do is get a copy of your DD-214 ( discharge paperwork) or a statement of service if active duty. This document is absolutely critical to have. Simply stated if you don’t have your DD-214 or statement of service you will not be able to obtain a VA Home Loan, reason being, it tells the lender that you were honorably discharged or have served the required amount of time to be eligible for your VA Home Loan benefits.

 
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Now that we have the DD-214 we need to take care of our next order of business and that is our COE (Certificate of Eligibility). This particular document creates much confusion for veterans because they don’t know where to obtain it. The COE is a document that is generated from the VA which states that you are eligible, not prequalified, for the VA loan. To ensure that you are in fact prequalified to use your VA Home loan you must speak with a VA lender to ensure that you meet the credit, and income requirements. Now in order to obtain this document you can contact the VA directly, or you can obtain from a VA direct endorsed lender (somebody like myself) which can be obtained in a matter of minutes.

Lastly, please keep in mind you must have these 2 documents. If you don’t simply stated you will not be able to obtain your VA Home Loan. For more information regarding your VA Home Loan benefits you may call me direct at 602-908-5849.

Thank you and May God bless you for your service to our great country.

Semper Fidelis, Jimmy Vercellino