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.”
If any of your customers are in the market for a