071 Mortgage Lending: I'm A Veteran, Should I Do A VA Loan?

Jan 20

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Today we are fighting for the ones who fought for us, our Veterans. After 25+ years in the business, Tim Harrison, of The HLC Team at Cornerstone Home Lending, knows a little bit about Mortgage Loans. We’re going to cover all things related to a Veteran Affairs Home Loan from how to qualify to what the closing process looks like and all the questions you may have in between.

“Being best positioned is all what I’m about. You got to get yourself in such a great position that you reduce the number of obstacles a seller has to think about so that your offer gets chosen over the others period.”

— Tim Harrison

Is a VA Loan right for me?

First off, if you are a Veteran that served our country, THANK YOU. So is this the right choice for you when purchasing a home? It may be if you’re able to qualify.

As Tim summarized it, “If you serve our country, we should give you the number one thing. And that's access to homeownership that creates wealth. If we can help you get into homeownership, we can start helping you and your family for generations to come in creating wealth.”

It’s what’s considered the VA Funding Fee. The government takes the risk of the loan covering losses up to 30% of the value of the property. And this allows Lenders to lend out more than they normally could, without the added risk of defaulting on the loan. It also doesn’t require a high credit score! As long as you meet the VA guidelines, the income to debt ratios are much more flexible and they can go up about 45-50% of your gross monthly income.

Negative Feelings Towards the VA Home Loan

When a realtor seems to be concerned about a VA loan, it’s most likely from just being unfamiliar with what’s required in a VA Loan process. But they can certainly ask questions and learn more from a great mortgage lender than understands VA loans, like our very own Tim Harrison.

It’s important that we take the time to understand the VA Home Loan so we can serve those that have served our country.

The Benefits of a VA Home Loan

No Loan Contingency- Potential to close in 15 days
No Down Payment
No Private Mortgage Insurance
Disability Benefits
Foreclosure Assistance
No Prepay Penalty
Better Term Rates
Lower Credit Score Qualifications

How much down payment does a VA buyer need?

NOTHING. No down payment. 0.

However, you do need to have closing costs, prepay taxes, homeowners insurance, lender, title, escrow.

A VA Home Loan also has one of the Lower Monthly Mortgage Rate options in the industry

Requirements for Eligibility for a VA Loan

If you’re a Veteran, always tell your lender that you are! They may have better options for you.

Typically qualifying is a little more strict, more than likely to protect the borrower and the lender from a sticky situation of affording the loan and ensuring it can be covered.

Find out if you qualify here.

Competing in Today’s Market

“Now we know right now as the date of this podcast, that inventory is tight. And especially when you're doing a VA loan and you know, you want to put your offer out there with potentially zero down, cause compared to people with 20 and 30% down or cash or what. If you want a fighting chance, I use that. Cause it's veteran you like that fighting chance myself. I hadn't mentioned it to make sure people figured it out saying I'm a little afraid it that way, but you really want to go as far as you can in the loan process to get approved again, VA or not, but especially on VA, because you're going against what we've talked about. These listing agents who are a little bit, oh, should I really take a VA loan because of. You know, no money down and you know, and the sellers are a little bit, they have to be on, they have to understand it too. It's not just the listing agents. They have to be able to basically convince a seller that these things are solid. The VA appraisers are good. Like they're the most experienced out there to get on that panel. They really know what they're doing. And they spend the time for the veterans really working on getting that value. So that's one of the things I think people expect the value's going to be low because it's zero down.” - Tim Harrison

Can all lenders do VA Loans?

No. if you're considering a VA Loan you need to contact a lender who is allowed to offer them. And while they may be allowed to offer them, they may not be as experienced. So double-check that they are confident in performing a VA Loan and that they can guide you properly.