Good Day and thanks so much for stopping by today. Today I would like to talk a little about VA Loans, which have so many great benefits to them. I myself work with a good amount of military and VA Loans. I'm actually Chairperson of the Military Affairs Committee with the Central Chamber of Commerce, in which we work closely with the Ft. Meade Base in Maryland.
So today I thought I would do an article that really is geared towards our active military and our veterans, which they and their families have given so much. 
Because of the bravery and sacrifices of veterans and active military, the rest of the country’s civilians can live the American dream in safety. As one tangible way to say "thank you for your service," current and former members of the military have access to Veterans Affairs home loans. These unique mortgage options allow veterans and those still serving to own a piece of the American dream by potentially qualifying for homes they might have thought were out of reach.

1. No down payment. 

This is one of the most valuable and touted benefits—and for good reason. Saving enough for a down payment can be the biggest obstacle to buying a home. But a VA loan eliminates that roadblock. Although keep in mind you will need to consider keep in mind that there are closing cost, Ernest Money Deposit, as well as cost of inspections, the one inspection exception is termite, that is paid by seller.
Although I will say I have worked with many of VA Loans and have been able to work it out so that my buyers get all closing cost help. 

2. More lenient loan requirements

The required credit score for a VA loan can be lower than for a conventional loan—around 620 for a VA loan compared with a range of 650 to 700 for most conventional loans.
In addition, the required debt-to-income ratio for VA loans is often more flexible than for conventional mortgages.

3. No mortgage insurance

Most conventional buyers have to pay private mortgage insurance if they put less than 20% down. FHA loans come with their own forms of mortgage insurance. But a VA loan waives that insurance requirement.
And trust us—this one's important.
"This can be a huge savings in monthly payments, since PMI typically runs around $200 a month.
Even though there's no mortgage insurance, there is a "funding fee"—an upfront cost applied to every purchase loan or refinance. The proceeds help the VA cover losses on the few loans that go into default. But borrowers can roll it into their monthly payment, or pay it all at once. Plus, it's tax-deductible. And veterans with a service-connected disability don’t have to pay the funding fee at all.

4. Limited closing costs

Legally, veterans are allowed to pay for certain closing costs, which include the following:
  • Appraisal
  • Credit report
  • Origination fee
  • Recording fee
  • Survey
  • Title insurance
But there are some fees that veterans are not allowed to pay. And the VA allows lenders to charge no more than 1% to cover the costs of originating and underwriting the loan.
So for example, if the purchase price is $280,000, the veteran might offer $300,000 and ask for 3% back to cover the closing costs.
“In this way the veteran is essentially financing their closing costs into the loan, meaning less out of pocket at the start.

5. Extra assistance with appraisals

When a home that a veteran is considering purchasing is having trouble reaching the appraisal price, buyers and lenders can ask the VA appraiser to consider adjusting the valuation before making a final determination.
Appraisers notify lenders in the event the appraised value is likely to come in low, giving buyers and real estate agents 48 hours to supply additional information that the appraiser might not be aware of to help justify the home’s value.
The listing agent should of brought together a list of all improvements and upgrades that can help get the appraisal up to the contract price.
This process "gives the agents an opportunity to assist the appraiser in making sure they have the whole picture of the home and gives the local agent an opening to help an appraiser be educated on specific local values,” she adds.
It's just another benefit of VA loans aimed at helping our service men and women buy the home of their dreams.
Tomorrow I will right another follow-up about VA Loans. 

Thanks so much for stopping by today and I hope you enjoyed today's Blog. Please share with friends. Please visit us on our website at www.MarylandHomesByLynn.com


Lynn Nichols, Realtor, CRS, MRP of Douglas Realty...
Lynn is a Realtor that serves Maryland and works
mainly surrounding Central Maryland.
For any Real Estate Needs please contact her at