When purchasing a home there’s many financing options available in the way of loans from FHA, Conventional to VA Loans. In this article I am going to break down some of the VA loan and hopefully demystify some myths of this particular loan.

VA Loan Quick Q & A 

Here are a few common questions asked regarding VA loans.

Did you know all of the answers to these questions? I know I didn’t and that’s why I wanted to share this with you.

How do I know if I qualify?

Ask! You may be pleasantly surprised. Qualifications for a VA loan vary depending on many factors. Ask your certified VA loan real estate agent (me) or your mortgage lender to find out!

 

Seller’s Beware?

While most people are aware of the buyer side of the VA loan sometimes seller’s are wary of accepting VA loans due to stigmatization and misinformation. So let’s talk about some of these common misconceptions!

Am I responsible for the Funding fee if the buyer uses a VA loan?

No! Commonly the buyer/borrower will have the VA funding fee included into their loan

Will the appraisal process be more difficult if I accept a VA offer? Will my house be more scrutinized?

This is a big concern among sellers and surprisingly the answer is NO. The laws and process surrounding appraisal independence are almost identical to conventional mortgages. Wow! The only item that will sometimes arise during a VA appraisal is if the subject property has chipping and peeling paint anywhere. Most states will also have to have a termite inspection done on the subject property, however, the cost of that is negotiable between the buyer and seller.

I want to sell my home fast! Does the VA loan take longer than a conventional mortgage?

NO. The compliance laws surrounding disclosures and closing are IDENTICAL to conventional loans. The lender has some extra tasks they have to preform, but when working with a reliable lender, the time lines and process are the same.

Don’t I end up paying for more fees when I sell to a VA borrower vs. a conventional borrower/buyer?

No. Your fees and conveyance will be identical, as well as your property tax preparations.

What is the maximum seller concession that can be requested by the buyer using a VA mortgage?

The maximum seller concession, or closing costs the seller agrees to pay, is 4% of the purchase price.

 

I hope this information clears up and dispels any misconceptions you have about VA loans.  In this competitive market as a buyer or seller or both it is best to arm yourself with information to get you the best deal. That is where I come in! Now armed with this information I can best support you on either side of the deal.

 

*As a disclaimer, I am not a loan officer. For more in depth questions and concerns regarding the VA loan process contact your preferred mortgage lender. Thank you Mutual of Omaha Mortgage and David Smith for the excellent class and information!