Who qualifies for VA loans, some hidden clients?

By
Real Estate Agent with RE/MAX Select

It's a great time to buy! 

All I hear these days is this is a terrible real estate market.  Well, that all depends upon whether you are the buyer or the seller. Since Buyers seem to have the upper hand in this market, let's talk about why buy now.I am sure you have heard, "there has never been a better time to buy a home".  That is a very true statement.  If you are in the market to buy a home, whether to use as your primary residence, a second home or an investment property, now is the time. 

Positives for the buyer:                                                

  • Interest rates under 5%
  • Housing prices are down
  • A large amount of inventory houses on the market
  • Sellers are paying a large portion of most buyers closing costs.

So what does all this mean to you?  It means that you can buy a home for less than you could 2 or 3 years ago, enjoy a smaller house payment or buy more house for your money.  You also have a great chance to see equity growth from your home.

Seller paid closing costs:

Have you ever thought what a great deal it is for a buyer to have a large portion of your closing costs paid? It is like handing you money for your everyday homeowner expenses.   Think of it this way, how would you like someone else to pay one year of your home owners insurance, flood insurance, taxes, title insurance and even reimburse you for your home inspection among other thing, the list can go on for some buyers.

Rates are low but going up:

Rates are extremely low, but a word of caution here, rates are thought to be increasing by May 2011 and maybe sooner.  As most of you know, the increase in interest rates means

  • Mortgage payments are higher
  • You will be able to afford/qualify for less of a loan

I'd like to buy but can I get a loan? 

Are you a Vet? Were you a Reservists/Guardsman? You may be eligible for a VA loan and not even know it. Below are qualifiers for a No Down Payment VA Loan:

  • You have completed 6 years in any U.S. reserve component, since 1944
  • You have served 90 days in a "War Zone", such as Somalia, Haiti, Grenada, Persian Gulf, Bosnia, Afghanistan, Iraq, etc.
  • You have served 181 days of continuous active duty
  • If you were disabled before completing your six year obligation
  • If you were discharged at the convenience of the U.S. government, such as a reduction in force, before completing our six year obligation.

If you meet any of the above conditions, you should contact me and I will refer you to a mortgage lender to obtain a VA certificate of eligibility form the Veterans Administration.  A VA lender can determine the loan amount that you would qualify for. There is no cost for these services.

Ok, you are not a Vet.

Where do you get the money, what types of loans are available to you? The standards are: FHA and Conventional Loans and Cash.  FHA loan are great loans if you qualify, since they require a smaller down payment (3 1/2% i most cases).  This makes it easier than with a Conventional loan since the conventional loan usually requires 10% or more down. 

Second Home or Investment Property:You might also look for equity in your existing home if you are thinking about purchasing a second home or investing in some rental property.

If you would like to find out if you have equity in your home to use, please contact me and I will do a Comparative Market Analysis for you to see what might be available, prior to investing money with an appraiser or a Second Loan Company.

If you are interested in a second home, you are in luck!  Many homes in the second home market are in short-sale of foreclosure.  There are GREAT deals out there right now.  So if you have ever dreamed of a home in the OBX, now is the time.

Same goes for Investment/rental properties.  There a many distressed properties out there. Some need more work than others, but with patience you could pick up a great deal, rent it for a while and then turn around and sell it for a profit, or just enjoy the revenue stream each month.

Many millionaires have been made with the purchasing of investment properties. There is an abundance of ways to purchase properties and if you are interested in exploring your options, email or call me.  If you know anyone that is thinking about buying a home, please forward this newsletter on to them.

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