Tehachapi's Online Community News & Entertainment Guide

VA Loans Are Good

Mortgage Matters

Why are Realtors and sellers wary of buyers using a VA loan? They shouldn’t be. Let’s bust some myths about this great loan program.

The VA home loan entitlement allows Veteran home buyers access to a loan program requiring no down payment. Way back in the day, VA loans had extra requirements about the condition of the property, and made the seller pay some of the buyer’s loan fees. Not any more.

MYTH: VA home loans require a 10% down payment. TRUTH: veterans can apply for 100% financing for most transactions.

MYTH: VA loans require a pristine property. TRUTH: The VA panel appraiser does a “health and safety” inspection just as they would for any other government-insured loans. The utilities must be on, and septic and pest inspections are required. In general, the house can be “ugly” but not “broken”.

MYTH: Sellers must pay lots of fees for a VA buyer. TRUTH: VA loans do not allow the buyer to pay for pest inspection or repair, for escrow fees, or for loan fees. The seller could pay these fees on the buyer’s behalf, or the lender could structure the loan such that the seller does not incur these costs. As with any other transaction, the seller could be asked for a closing costs credit to the buyer, but that is usually covered by increasing the offer price.

If you have served in our Armed Forces, thank you. When you think about buying your next home, be sure you ask your Mortgage Advisor about using your VA loan entitlement.

Tammy Engel is your local Mortgage Advisor and has been certified by USA Cares as Military Housing Specialist. Contact her at 661/822-7325 for help with purchase, refinance, and reverse mortgage.