Now is a great time for VA loans

by Ryan Smith08 Aug 2016
If any of your customers are in the market for a VA loan, now is the time. The VA is releasing a new handbook early next year – and revisions usually mean stricter qualification requirements, according to a report by Quicken Loans.

With mortgage rates near historic lows, now is a great time for eligible customers to shop for VA loans. And the program has many selling points. It’s the only loan program that offers 100% financing, and monthly mortgage insurance requirement is replaced by a one-time fee, saving customers money over the life of the loan.

“The opportunity to have 100% financing provides an immense amount of financial flexibility,” wrote Quicken Loans’ Kevin Graham. “Instead of putting that money toward a down payment, you can choose to put your money into appliances, furniture or other items you need for a new house.”

VA loans also have a better seller concessions policy, according to Quicken Loans. Seller concessions – like agreeing to pay for some origination costs in exchange for a higher purchase price – give buyers and sellers alike more negotiating flexibility.

VA loans also have relaxed refinance requirements, according to Quicken Loans.

“This is extremely powerful in today’s low-rate environment,” Graham wrote. “It could provide you with the flexibility to get a lower payment even if you lack equity in your home because your property value hasn’t yet recovered from the economic downturn.”
 

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