For over ten years I have conducted Veteran Homebuyer Seminars and Expos and it never fails that men and women of the U.S. Military tell me they were discouraged from using their VA Home Loan benefit. They were told that a conventional loan was better for them and many were encouraged to use subprime loans rather than this government-guaranteed mortgage.
What many lenders and loan officers did not say is that they were not approved by the Department of Veteran Affairs so they could not offer a product they did not have and rather than lose a customer, they steered the veteran to a mortgage product they offered and they could get paid a commission.
Particularly during the Gulf War era, more and more women veterans have enlisted and because of their combat duty they are entitled to 100% financing to own a one to 4 unit property in greater Ft. Lauderdale, up to $417,000 dollars in value. Statistics show that nearly 15.7 percent of veterans who served from August, 1990 or later were women.
How do men and women of the military save thousands of dollars using their VA Home Loan Benefit?
Let me tell you one unique feature of the VA Home Loan benefit: a veteran does not have to pay Private Mortgage Insurance (PMI). Private mortgage insurance is to protect the lender in case a borrower is unable to repay the loan. The insurance is paid by the borrower when the loan to value is more than 80%. Borrowers who get 90%, 95% or 97% have to pay PMI because their loan is more than 80% of the purchase price. A normal PMI premium on a $200,000 property might be $120 a month or $1440 per year.
The U. S. Department of Veteran Affairs guarantees a portion of every VA mortgage; therefore, PMI is not required by VA borrowers although they are getting 100% financing. If you save $1,000 a year for ten years you have saved $10,000 dollars by not paying PMI.
VA Home Loan advantages include:
- Zero down payment required
- No prepayment penalties
- No private mortgage insurance required
- Competitive 30 year fixed interest rates
- Clear termite and Clear roof reports are required
- No funding fee with 10% or more service-connected disability
- Seller can contribute up to 6% in closing costs
- More flexible qualifying standards
- 100% maximum loan-to-value ratios on purchases
- Most counties allow $417,000 purchase price for 1-4 units
- Income from VA monthly payments is tax free and can be used to qualify for a mortgage
Male and female veterans are sitting on a gold mine with their Certificate of Eligibility (COE). Property prices in Ft. Lauderdale are at an all time low as short sales and foreclosures flood the market seeking qualified buyers who are committed to realizing the Dream of Homeownership.
Veterans, get on board and let Uncle Sam help you own a home and receive all the federal tax benefits allowed by the IRS. Call the Home Lady© for more information.
Avg. Sales Price: 379,000
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