VA Loans Are Assumable
Even Non-Veterans Most people don’t realize that VA loans are assumable, meaning a buyer (even a civilian!) can take over the seller’s current VA mortgage, often at a lower interest rate than what’s currently available, huge if we were to enter into a high-rate environment.
There is No Official Limit on VA Loan Amounts (But Entitlement Matters) Many agents still think VA loans have caps. Since 2020, VA loan limits are no longer a thing for buyers with full entitlement. Buyers can borrow as much as a lender will approve with zero down
VA Buyers Can Reuse Their Benefit, Even with Multiple Loans at Once Veterans can have more than one VA loan at a time, depending on how much entitlement they have remaining. This is known as “second-tier entitlement”.
VA Loans Can Be Used for Multi-Unit Properties (Up to 4 Units) If a veteran occupies one unit as their primary residence, they can buy up to a 4-plex with a VA loan, with 0% down.
The VA Funding Fee Can Be Waived Veterans with a service-connected disability (even at 10%) typically have the funding fee waived. That can save thousands.
VA Loans Don’t Require Mortgage Insurance, Even Unlike FHA or low-down conventional loans, VA loans don’t charge monthly mortgage insurance, even with 0% down.
VA loans have some of the lowest interest rates of any loan program! With the VA Guaranty, there is less risk for the lender.
VA Loans Allow for Seller-Paid Repairs + Closing Costs The VA allows sellers to pay up to 4% in concessions, on top of standard closing costs.
This can include:
- Prepaids
- Funding fee
- Payoff of credit balances to qualify
(Imagine helping a buyer qualify by paying off pesky debt to qualify using seller concessions! You will look like a hero-to a hero!
VA Appraiser will call Tidewater if he/she feels the value is not supported, allowing the parties to provide additional comps before final value is determined. This is not done with any other loan type!
There is no maximum DTI on a VA loan. Instead of DTI, the underwriter will consider if the amount of disposable income meets guidelines. This calculation is almost always more liberal than a DTI calculation.
