With all the doom and gloom in the housing market today, many people feel that we are in a recession with only the worst yet to come. What people are not realizing however is that the market operates in cycles, and right now, unfortunately we are heading in a tailspin trying to save the economy, contain the record amounts of foreclosures, and give companies the commercial credit they need to operate their business.
Enter the VA home loan. A 100% no money down program insured from the government to qualified veterans to stimulate the economy through low cost housing with interest rates lower then your normal conventional loan. With the record amounts of inventory on the market right now, banks are willing to sell their bank owned inventories of properties for up to 20-30% off the loan amount owed on the property. In addition, VA will let you have the seller pay up to 4% in closing costs. What this means is that if you buy a $300,000 home with a VA loan, the seller can pay up to $12,000 in closing costs, in addition to fixing up the property for all non-structural related improvements up to around $5,000.
This is an amazing benefit to the veteran because you literally do not have to have ANY MONEY to put down. In addition, if you are a medically discharged veteran, who receives at least 10% medical per month from the VA, you do not have to pay the VA funding fee, which is normally 2.15% of the loan amount for all first time home buyers.
What's needed to qualify then for a VA loan? At least 181 days of active duty, active or discharged, honorably or medically discharged under honorable conditions., and around a 45% debt to income ratio. If your medically discharged and do not work, however get enough medical money per month from the VA to ratio for the home loan, then we can use that income as well.
Take advantage of low interest rates, deeply discounted real estate, and the inclusion of your VA benefit today!!! This is an amazing time to be buying real estate, and creating your future today!