October 22, 2020
The maximum VA loan for veterans to buy with no down payment was $625,500 last year. This year, the Veterans Administration blew the minds of everyon in the mortgage business when they removed the cap, and said the VA will guarantee any loan, of any amount, and require no money down payment.
You may now buy a $1.5Million house, if you have the income to qualify, with zero down payment. Is a $2Million house more to your liking? You can buy it with zero down and have a mortgage interest rate of 2.5%-2.875%, over 1.5% lower than conventional jumbo loans that require a 20% down payment."Oh, but Markita, wouldn't a 20% down payment save us money in the long run?" A 20% down payment on a $2Million loan is $400,000. Chances are you don't let $400,000 languish in your checking account, collecting no interest. You likely have that money invested for growth in stocks or a mutual fund. I don't know about you, but my mutual funds have been giving me a 7%-9% annual return, reliably and predically over the past ten years. Would you seriously withdraw $400,000 from an investment paying 7%-9% to save 2.5%-2.875% in house payments? Think about that.
Warren Buffett, one of the richest persons on the planet has been refinancing his home in which he has lived since the 1950's, to take equity out of the house, and invest it in his high-flying mutual fund. "Where can I borrow money so cheap, and invest it in my fund?", Buffett said.
Yoiu may not be financing a $2Million mansion, but you may wish to buy your "Trophy Home" at $850,000 with no money down.
Call me to find out how much home you qualify for, and compare a zero down jumbo VA loan and how zero down can keep your wealth working for you. I'm Markita Woods, 703-929-2274, with American Financial Network, a big player in VA financing.
Queen of Mortgages
American Financial Network"
3302 Old Bridge Road, Suite A
Woodbridge, VA 22192
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