The VA Home Loan: a fantastic, but underutilized benefit.

By
Real Estate Agent with Thompson Company, REALTORS® MD594797

"33.6% indicated they did not know about the program"

"62.8% (older veterans) said their lender never discussed the VA loan option with them."

"31.8% said a conventional and/or FHA mortgage was easier to obtain or less expensive."

"8.1% said their lender and/or REALTOR discouraged the use of the VA loan." 

 

I learned of these number last week in a continuing education class sponsored by the Maryland Association of REALTORS® and VAREP (the Veterans Association of Real Estate Professionals), and was shocked - especially about quote #4. 

A VA Home Loan (which is a guarantee not an actual loan made by the VA) is a fantastic benefit that is earned, and - obviously - underutilized. According to the infographic below, published by the U.S. Department of Veterans Affairs, approx 620,000 VA home loans were guaranteed in 2013. Fast forward 5 years and the numbers are not much higher, 610,512 for FY 18

14,685 were made in the State of Maryland, 8,822 were purchase loans. 

Having spent 14 years in the supporting role of active duty military spouse, and more than 15 now as a military-friendly REALTOR® serving the WRNMMC and Fort Meade military communities, I get the unique challenges military families - active duty & veterans - face, I've experienced a few first hand.

I have proudly supported my military community, I have successfully navigated the VA loan home process with many, have advocated for this benefit and worked to dispel the myths surrounding it. Given the above quotes and numbers, I clearly need to do more - we all do! 

What are some of the misconceptions when it comes to VA Home Loans?

  • VA loans are harder to obtain: many of the qualifying criteria are the same (e.g. satisfactory credit risk, stable and sufficient income, primary occupancy), on average the time it takes from contract to settlement is just 2 days longer.
  • The appraisals are tough: the MPRs (minimum property requirements) are pretty much the same as for FHA loans. The purpose is to determine that the home is safe, structurally sound and sanitary - just like any other purchase or refi loan. 
  • There's too much paperwork involved: be prepared to have to submit everything but your death certificate to your lender - no matter if conventional, FHA, rural, or VA. That's just the way it is. 

What are some of the benefits of VA guaranteed loans?

  • 100% financing, no down payment requirement
  • ability to finance the funding fee (if not waived)
  • no mortgage insurance premium
  • no prepayment penalties
  • assumability

And then there is the Tidewater Initiative which can be very beneficial to both, buyers and sellers, in case of low appraisals! It's a stop-gap and huge plus of a VA loan - it gives REALTORS® and lenders time to justify the sales/contract price and provide market & property evidence for the appraiser's consideration before the final value is established. 

Roadmap to buying a home with a VA home loan

The benefits of a VA Home Loan are many. If you are in the process of PCS'ing to Maryland, or considering trading up to a more permanent home, or thinking about refinancing, I certainly hope that you'll at least think about taking advantage of it and connect with an experienced VA lender as well as REALTOR® to explore your options. 

As a military-friendly REALTOR® I have served the WRNMMC and Fort Meade communities since 2004. I would be honored to help you administer your VA home loan benefit in Maryland. You have earned it. 

I deeply respect your unwavering commitment to serve our country, and for taking that lifelong oath so selflessly. As a token of my appreciation, and throughout 2020, I will offer a rebate and a donation in your name to the Gary Sinise foundation at time of settlement. Thank you!  

Posted by



ANDREA BEDARD, M.A. ~ THOMPSON COMPANY, REALTORS ~ 

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Thompson Company, REALTORS

16910 Oak Hill Rd, Silver Spring, MD 20905
o: (301) 384-9177 c: (240)593-2860

andreabedard.re@gmail.com

Andrea is a REALTOR® based in Silver Spring, MD, who has enjoyed assisting buyers and sellers in Montgomery and Howard County, MD (and beyond) for 15+ years now. She always answers the phone with a smile, enjoys running, hiking, and treasure hunting, and is very much addicted to coffee. 

 

Let's get started on writing your very own digital Real Estate story. Receive a FREE credit report when you join me on the very best, responsive, intelligent, and collaborative home search there is, powered by the MLS. Ready? Just click here to begin!

 

 Andrea Bedard, Thompson Company, REALTORS: from Just Listed to Just SOLD

 

All photographs are my own and I'd like to keep it that way.
Please get in touch prior to using any of my images and/or my original content. 
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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Brian England 11/12/2019 06:37 AM
  2. Roy Kelley 11/19/2019 01:00 AM
Topic:
Home Buying
Location:
Maryland Montgomery County
Tags:
military friendly realtor in maryland
buying a home with va fort meade
buying a home with va loan in bethesda
military friendly realtor fort meade
realtor in maryland experienced with va loans
what are benefits of a va home loan

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Rainmaker
2,025,390
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Andrea Bedard - kudos to you for being the goto Realtor for help with VA.  A great service to veterans.

Nov 12, 2019 05:37 AM #1
Rainmaker
2,698,300
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

If someone is a veteran, they should definitely make use of this tremendous benefit.  The VA loan is the best loan out there!

Nov 12, 2019 06:06 AM #2
Rainmaker
5,568,951
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is great information to share and I will schedule a reblog.

Have an outstanding week.

Nov 12, 2019 07:59 AM #3
Ambassador
847,204
Mimi Foster
Falcon Property Solutions - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Great article and lovely presentation. I found it unfortunate recently to find that that VA was denying loans to veterans who work in the cannabis industry . . . a very stable job in CO LOL

Nov 12, 2019 09:01 AM #4
Rainmaker
746,341
Andrea Bedard
Thompson Company, REALTORS® - Silver Spring, MD
M.A.; REALTOR® Silver Spring, MD and beyond

I am honored to give back just a little Grant Schneider, all my military clients are special clients who deserve the best loan program and best service. 

The VA loan comes with a ton of advantages Brian England - I especially like that the loan can be assumed by a new owner (subject to eligibility and conditions). Who knows what the market/interest rates will be like in the future? Just to have this option is great! 

Thanks so much Roy Kelley - I appreciate it!    

Thank you Mimi Foster - I'll have to check on that. It may just be a matter of time..

Nov 12, 2019 06:59 PM #5
Ambassador
847,204
Mimi Foster
Falcon Property Solutions - Colorado Springs, CO
Voted Colorado Springs Best Realtor

I wrote this this summer. I know that, because it has become such a big industry, they were trying to get "the powers that be" to reconsider. 

VA Loans Being Denied

Nov 13, 2019 06:14 AM #6
Rainmaker
746,341
Andrea Bedard
Thompson Company, REALTORS® - Silver Spring, MD
M.A.; REALTOR® Silver Spring, MD and beyond

Wow, Mimi Foster, thank you for sharing. Your well-written article sums the issue up nicely. "The powers that be" move at snails pace, but even a snail makes progress and inches forward. I do believe that there will be changes in the future - the question is when - and how many veterans can't take advantage of their VA home loan benefit in the meantime.  

Nov 13, 2019 05:57 PM #7
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Rainmaker
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Andrea Bedard

M.A.; REALTOR® Silver Spring, MD and beyond
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