We often meet military veterans, and we love being able to tell Veterans, service members, and their surviving spouses about the VA home loan that can help them buy a home, if they qualify—without making a down payment.
This is a great benefit for US Military Veterans who meet one or more of the following requirements:
- You served 90 consecutive days of active service during wartime.
- You served 181 days of active service during peacetime.
- You have 6 years of service in the National Guard or Reserves, or served 90 days (at least 30 of them consecutively) under Title 32 orders.
- You are the spouse of a service member who died while serving or died from a service-related disability.
With a VA-backed home loan, the US Department of Veterans Affairs is guaranteeing a portion of the loan you get from a private lender. And there are many different private lenders offering competitive interest rates on VA-backed purchase loans.
Lenders may also require you to meet additional standards such as having a high enough credit score. You may be eligible for a VA-backed purchase loan if you meet all of the following requirements that must all be true:
- You qualify for a VA-backed home loan Certificate of Eligibility (COE), and
- You meet our—and your lender’s—standards for credit, income, and any other requirements, and
- You will live in the home you’re buying with the loan
In the past, sellers had a negative perception of the VA home loan, largely due to outdated information. Sellers think it will cost more money to sell their home, because they’ve heard about paying for the buyer’s closing costs, termite inspection, and meeting property condition guidelines.
Note that the seller has no obligation to pay for a buyer’s closing costs regardless of the type of home loan used. A buyer using conventional or FHA financing has the same right to ask for help with closing costs and the seller has the same right to decline, making this issue a moot point.
Yes, the VA Home Loan requires that the property meets certain condition guidelines to be eligible. These guidelines are very similar to those required for FHA financing, so citing these guidelines as a reason for not considering an offer is probably outdated or misinformed.
We’re happy to report the termite inspection is no longer required to be paid by the seller due to a recent change to VA policy. The VA loan program now encourages VA buyers to negotiate with sellers regarding payment of the inspection fee and any repairs, removing the termite inspection disadvantage in a competitive housing market.
As we work with VA buyers, we try to debunk the myths of the VA home loan as we talk with selling agents and are happy to report that we’re seeing misconceptions about the VA loan disappear.
With a VA home loan, you may need zero dollars down to buy a house! That’s the best loan out there!
We can explain it in depth if you reach out. I’m glad to help or to send you information. We enjoy helping our Veterans. Thanks so much and thank you for your service.
