Many agent and home sellers are opposed to or at least hesitant to accept offers from buyers using VA Loans because they have misconceptions about what VA loans require the sellers to do and they think the buyer cannot really afford to buy the house because they have chosen $0 down or very little down, when, in fact, VA Buyers can often be the strongest offer on the table! In the past, VA loans required sellers to pay for repairs and other “non-allowables.” Now, a VA Borrower can pay for all repairs, closing costs and more in some situations. The only thing a VA buyer cannot pay for is a pest report. A seller, agent or other party would need to pay for that.
There are many benefits to the Buyer using a VA loan. For example, they can put $0 down up to the VA loan limit, and only have to come up with 25% of the difference between their offer price ans the loan limit if they want to buy a home that costs more than the zero down VA loan limit. VA loan rates are also lower, the lender can credit the borrower to help pay for closing costs if needed (interest rate will go up a little to cover the cost), there is no mortgage insurance required for VA financing, and future buyers of that home can assume the loan at today’s low interest rate…Dean Simpson with iServe Mortgage discusses the these and more in his short video. Agents, home sellers and potential VA borrowers should listen to what he has to say.