VA mortgage lending has surged recently due to the lowest VA mortgage rates in history combined with the program’s zero down financing. I believe VA financing is the best purchase product available in the market today, as the VA makes it easy for their members to purchase a home with zero down financing and No monthly mortgage insurance. This list of VA frequently asked questions and VA tips will help you understand the in-and-outs of how the VA mortgage program works. I also included 4 tips below too that you can use to help get your VA offer accepted.
VA purchase market in NV continues to grow
As you can see in this chart above, VA loan volume is now at a 19 year high. With 151,000 Veterans now living in Clark County, and a large percentage of these based at Nellis AFB, VA buyers play a significant role in the local housing markets.
A VA buyer today can get a low VA 30-year fixed rate an, we can give a buyer a lender credit to cover ALL their closing costs, so we can help a VA buyer purchase a home with little to no money out of pocket.
VA Loan Frequently Asked Questions
Here is a list of the most frequently asked questions that VA buyers and homeowners have about VA financing. I also included 4 tips below too that will help a VA buyer get their purchase offer accepted.
Who is eligible for VA financing?
A veteran is eligible for VA financing if he/she served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard and was honorably discharged after 24 continuous months of active duty, or the full period for which called, or ordered to active duty, but not less than 90 days (during wartime) or 181 continuous days (during peacetime).
Can VA Buyers Purchase With $0 Down?
Yes, VA buyers can get 100% financing here in San Diego to $500k? VA financing is still the only loan program that allows 100% financing in any area (FYI the USDA allows 100% financing, but this is strictly for properties located in rural areas).
We can also give a VA buyer a lender credit to cover ALL their closing costs. This means a VA buyer can purchase a home with No down payment due or closing costs either, and they will only have to pay for the appraisal fee out of pocket. Make sure to ask me how you can qualify for this lender credit towards closing costs too.
As the FHA still requires a 3.5% down payment, and most conventional loan programs require down payments anywhere from 5% to 20% depending on the credit profile of the buyer, this is still putting home ownership out of reach for many buyers.
What is the Minimum Credit Score to Qualify For VA Financing?
Most VA lenders only need a 620 credit score to offer 100% VA financing. Some VA lenders allow a buyer to qualify up to a 57% debt to income (DTI) ratio on VA loans, Fannie Mae is now capped at 45% in most cases.
Qualifying for a VA loans is usually easier because many first time buyers typically don’t have a lot of established credit, and getting qualified for a conventional loan can be more difficult.
Do VA Buyers Pay Any Monthly Mortgage Insurance?
Another huge advantage for VA buyers is that they do not have to pay any monthly mortgage insurance (MI) on their loans, as VA loans are backed by the government. Remember all FHA loans require mortgage insurance. So having no monthly mortgage insurance allows VA buyers to have a lower monthly mortgage payment or purchase a bigger home.
What is the Maximum VA Loan I can Qualify For?
The VA offers financing based on county loan limits. For example, the VA offers 100% financing up to $417,000 for buyers in Clark County. You can check your county loan limit by clicking HERE
*To borrow over the county loan limit, there is a formula the VA uses to calculate what a VA buyers down payment requirement is. Feel free to contact me if you have a VA scenario and you want to calculate what the down payment requirement is.
What is a VA Streamline Refinance?
A VA streamline Refinance is the best refinance program in the market. This program allows a homeowner with an existing VA loan refinance into a new VA loan with no appraisal or income requirements.
Because you already have a VA loan, the VA allows you to refinance your current loan balance into a lower rate with very limited documentation so you can take advantage of lower rates and save extra money 
. It is a fantastic program available only to VA members. Ask me for more details how to qualify for this program
How Are VA interest Rates Compared to Other Loan Programs?
VA mortgage rates are usually the lowest in the industry. *Make sure to ask me how we can cover ALL your closing costs with our VA lender credit option.
Because the VA insures the loans for their members, they are able to offer lower rates to buyers. They are usually between .25%-.375% lower than conventional rates.
What is the VA Waiting Period after a Foreclosure, Short sale or Bankruptcy?
Short Sale: It is only 2 years before a buyer can repurchase again using VA financing.
Foreclosure: It is only 2 years before a buyer can repurchase again using VA financing.
Bankruptcy: For a chapter 7 Bankruptcy it is 2 years and 1 year for a chapter 13, before a buyer can repurchase again using VA financing.
Can I Buy an Investment Property With VA?
No, you can only purchase a primary residence using VA financing, no second or vacation homes either. But if you already own a home with VA financing on it, you can qualify again to purchase a new home with a VA loan.
4 Tips to Help Get Your VA Purchase Offer Accepted
Here are 4 tips to help a VA buyers purchase offer get accepted.
1. Submit a personal letter to the seller with your offer
It is a good idea for a veteran to submit a personal letter with their purchase offer, and to tell the seller why they want to buy their property. Because if you can tug at the heart strings of the seller, then they may be more apt to choose your offer over others! There will be some sellers who will take great pleasure in having the opportunity to help our veteran families.
2. The misconception that the seller must pay for all or some of the VA buyer’s closing costs.
On VA transactions, the seller is NOT required to pay ANY costs for the buyer, but is allowed to pay up to 4% towards a VA buyers costs. There are certain “VA non-allowable” costs for which a VA buyer is forbidden to pay, (for example No escrow fees, wiring, notary, tax service or processing fees are allowed to be charged).
Therefore here is a good tip to help get a VA offer accepted, so this issue of who covers these VA non allowable fees does not become an issue when negotiating the purchase price. Write the following verbiage into the purchase contract, so the seller is not put off by the VA offer: “Seller not responsible for any buyer closing costs, regardless of the selected loan program. All agency-related “non-allowable” costs to be borne by lender”.
This means the VA Non-Allowable fees will be paid by our lender credit instead of the seller, we do this for all our VA buyers. So now the seller will NOT dismiss the VA offer right away, does NOT have to cover any closing costs, negotiations are easier, and the buyer and seller can strike a deal.
3. The No down payment requirement means less “skin in the game” for a VA buyer
Because a VA buyer is allowed to finance 100% of the loan, this does amount to very “little skin in the game” in the eyes of the seller. But here is what you can do to strengthen the VA buyers profile, show the seller that the VA buyer has a DU approved loan (VA underwriting approval) and also include asset documentation (proof of reserves etc) to support that approval.
It is important to show proof of some reserves and assets, because if the appraisal comes in low, the seller will want to know that the buyer has some funds on hand, in case they need to negotiate a new price. This will ease the fears a seller might have about a buyer performing with their financing.
4. The assumption that VA appraisers are less generous in their appraisals
Another misconception is that VA appraisals usually come in lower. While I am sure that a lot of people have had a VA appraisal come in lower in the past, I am sure they can say the same about FHA and conventional financing too.
Underwriters and appraisers will point out, as long as the property is properly priced and the offer is reasonable, the VA appraisal should go smoothly.
Support Our Troops, help them buy a home!
Because of the large number of veterans that are living in Nevada, helping VA buyers plays an important role in the local housing markets. My father was in the Army and and my father-in-law is ex Navy, so I especially enjoy working with VA buyers.
I have found that VA buyers are always a pleasure to work with, and it feels good to know we are giving back a little to our military friends by helping them obtain home ownership, as they sacrifice so much for all of us on a daily basis.
My company is approved directly with the VA, so we are able to offer all the best programs that are available to our military friends. If you have any questions about getting approved for a VA loan, please feel free to contact me directly at 702-326-7866. I look forward to chatting soon.
