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Good News for VA-Eligible Home Buyers in Maryland!

By
Real Estate Agent with Long & Foster Real Estate, Inc.

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:

VA loans

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:

  1. Little or now down payment
  2. Ease of qualifying
  3. 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 Sellers, find out How VA Can Help You Sell Your Home.

RELATED LINKS: 

Posted by

This infoMargaret Wodarmation was provided to you by Margaret Woda, an Associate Broker with Long & Foster Real Estate in Crofton Maryland. Contact Margaret today for general real estate information or to learn how she can help you buy or sell a home in Annapolis, Bowie, Crofton, Davidsonville, Gambrills, and Odenton. 

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Comments(6)

Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital
Margaret, good post!  I'm noticing that sellers are considering a lot of options that would have been non-starters a couple of years ago.
Dec 15, 2007 02:58 AM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Margaret,

Nice post...And this could be the best part for someone selling in the future: An assumable mortgage.

Thanks,   Fran

Dec 15, 2007 03:40 AM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Patricia, isn't that the truth!  In my market area, VA can really make a difference, with so many military families.

Fran - Very true, and that will be a big factor for helping people sell when interest rates go up again.

Dec 15, 2007 05:00 AM
Jesse Clifton
Jesse Clifton & Associates - Fairbanks, AK
There you go with those charts again. :)  I don't include it now, but should probably include those financing stats in my quarterly market reports.  More inspiration... Enjoy the weekend!
Dec 15, 2007 10:23 PM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!
Margaret- What I nice series that you are doing that will get those military people calling you! Katerina
Dec 16, 2007 01:09 PM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Jesse and Kathy - This is the first time I've used info about financing - it's really a separate topic, in my mind, from the market studies.  I do think it's intersting, though to see that the actual # of VA loans has been pretty consistent all year, but the percentage has gone up as as # of sales has gone down.

Katerina - For some reason, it just dawned on me that this is one of the ways I generated a lot of business the last time we had a market like this.  People who can't sell their homes to pull out equity, MAY be able to buy VA, making them non-contingent (except for a lease on their current home). 

Dec 16, 2007 01:22 PM