Veteran home loans rates are higher than market in Northern Virginia....really?
No, but the conversation went something like this:
Hey Markita, this is Ms. Realtor with ABC Company and I am checking on the pre-approval for Carl Client.
After sharing the pertinent updates, Ms. Realtor then stated that Carl Client has a certificate of eligibility for a Veteran Home Loan but I have advised him against this type of financing.
(Really I am thinking in my head) But out loud I ask:
Why would you do that? Does he have twenty percent downpayment?
Ms. Realtor says her client does not have twenty percent down payment but the reason for advising against a VA loanwas because her Broker informed her thatVeteran Home Loan Rates are higher than market.
As I let out a sigh I ask "where is your Broker getting his information and what exactly does "higher than market"mean?"
After explaining that in my opinion Veteran Home Loans are the best financing on the market for 1st time buyers like Carl Client Carl for a number of reasons such as:
- The zero down payment feature (enough said)
- 4% seller concessions
- Less stringent credit qualifying(600 middle credit score)
- No expensive monthly mortgage insurance
We also discussed that even if her Broker's incorrect statement were true, the now very expensive monthly mortgage insurance especially on FHA loans, would wipe away any "perceived" savings from a so called lower than market interest rate of other types of financing.
In closing I went on to explain that based on Carl Client's profile he would be crazy not to use his veteran home loan benefit to purchase a home in Northern Virginia.
Instead of just leaving Ms. Realtor with my humble opinion about Veteran Loans being the best financing on the market today, I sent her the comparison of a $300,000 sales price at 4.75% 30 Year Fixed Rate
The veteran home loan mortgage payment was $210 less than FHA along with the significantly lower out of pocket cash.
Just for kicks I bumped the rate by a .25% and the veteran home loan payment was still $159.00 less monthly.
I hope Ms. Realtor shared the information with her Broker......
Need help with mortgage financing for Veterans and Active Duty Military call me at 703-497-3936 your local Veteran Lender in Woodbridge, VA we close Veteran Loans in 30 days or less at Market Rates!