Here are 5 ways the VA home loan differs from any other loan type.
1. No down payment needed: you don’t have to put any money down to purchase a home with a VA loan.
2. No PMI: no private mortgage insurance so you don’t have to pay the monthly amount that other buyers would have to put 20% of the purchase price down to avoid paying.
3. Cash out refinance: you can actually cash out refinance on your primary residence with a VA loan on it up to 90% of the homes value! Which is so crazy! There is no other type of loan on the market allowing that percentage of equity to be pulled out.
4. Up to 4% towards concessions: if your agent is able to help you negotiate the concessions you can utilize them! Seller concessions up to 4% of the reasonable value of the property to use towards closing costs, repairs or rate buy down.
5. MY FAVORITE SUPER POWER of the VA home loan: you can have the seller pay off your credit cards or car loan! This is absolutely nuts and I’m going to tell you right now most realtors have no idea you can even do this. Being a military spouse we’ve personally used the VA loan multiple times and helped countless home buyers throughout the process.
Here’s the down low on the debt payoff: once you’ve used the 4% mentioned above for seller concessions to pay towards your closing costs and whatnot, you can apply an additional 4% towards paying off your debts. Sooo… it’s imperative for you to hire a VA loan expert realtor. And, if the situation presents itself with longer days on the market and a non-competitive space; take full advantage!
