Sellers WANT you now, after years of shunning VA buyers!
It's true, home sellers are eager to accept your offer on their home, even though your choice of financing may cost them more than a conventional buyer. 'Truth is, they may even pay some or all of your closing costs. Home sellers felt quite different, just two or three years ago, as two or ten or more home buyers competed to see who could win a seller's favor in the recent sellers' market. Cash purchases and conventional loans ruled then.
Home buyers rule now! As the home market has tightened on sellers, buyers have been flexing their muscles, and VA loans have been making a comeback. In Anne Arundel County, Maryland, where my office is located, the percentage of VA loans is up for the fifth consecutive month:
Source: Metropolitan Regional Information Systems, Inc. (MRIS)
Why use a VA loan to buy a home? From my perspective as a real estate agent and a VA-financed homeowner myself, there are three primary reasons:
- Little or now down payment
- Ease of qualifying
- No pre-payment penalty
I could write at least a paragraph to clarify each of these reasons, but it would be better for you to consult with a mortgage lender. I do want to make one important point, however - you may be eligible for a VA loan even if you have had one in the past, even if you have one now on another home.
Find out if you are eligible for a VA loan.
Since you can realistically expect to use your VA eligibility to buy a home in this market, you should visit the website for U.S. Department of Veterans Affairs - maybe even before you choose a lender or real estate agent. Here a few links you may find helpful:
Home Loan Guarantee Services - Home Page for information about VA loans.
Rules for VA Eligibility - Find out if you qualify, based on your service or your spouse's service.
Obtaining a Certificate of Eligibility - Complete instructions and forms.
Frequently Asked Questions about VA Loans - I think this is self-explanatory
Home Sellers, find out How VA Can Help You Sell Your Home.