In reality, another downside of VA financing is getting the seller to pay the veteran’s loan costs in a hot market. Sometimes these costs can be added to the sales price, but inflating the value can create appraisal problems.
An example of this dilemma is the case of Dave, a Gulf War veteran, and his wife Amanda, who wanted to use a VA guaranteed loan to get their first home.
Although their credit was great and Dave and Amanda prequalified for $175,000, the hardest part came in finding a seller who was willing to pay their loan costs of more than $8,600. While the market in their area was stable, finding a home with sellers motivated enough to discount their home an additional 5 percent was a challenge.
After two months of looking and several rejected offers, Dave and Amanda found a home where the owners were getting a divorce and for a quick sale finally agreed to pay $6,000 toward buyer closing costs. That left $2,600 that Dave and Amanda needed to come up with to close. Even though they didn’t get into a home for zero down as they had hoped, VA financing did enable to them to buy a home for a smaller down payment than other loan options would have. The bottom line is that for a veteran needing to get into a starter home with little or no down, a VA loan is hard to beat. But expect some tough shopping if it’s a seller’s market and seller concessions are hard to come by.
VA Mortgage programs: You can get more information on VA loans and benefits by calling 800-827-1000 or going to Web site www.va.gov.
An example of this dilemma is the case of Dave, a Gulf War veteran, and his wife Amanda, who wanted to use a VA guaranteed loan to get their first home.
Although their credit was great and Dave and Amanda prequalified for $175,000, the hardest part came in finding a seller who was willing to pay their loan costs of more than $8,600. While the market in their area was stable, finding a home with sellers motivated enough to discount their home an additional 5 percent was a challenge.
After two months of looking and several rejected offers, Dave and Amanda found a home where the owners were getting a divorce and for a quick sale finally agreed to pay $6,000 toward buyer closing costs. That left $2,600 that Dave and Amanda needed to come up with to close. Even though they didn’t get into a home for zero down as they had hoped, VA financing did enable to them to buy a home for a smaller down payment than other loan options would have. The bottom line is that for a veteran needing to get into a starter home with little or no down, a VA loan is hard to beat. But expect some tough shopping if it’s a seller’s market and seller concessions are hard to come by.
VA Mortgage programs: You can get more information on VA loans and benefits by calling 800-827-1000 or going to Web site www.va.gov.
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