Did you know that a mere 9% of military families who are eligible for a VA Loan actually take advantage of its exclusive, cost-saving benefits?
iDirect’s John McDade, Director of Government Lending and a Vietnam veteran himself, says that many of our military families don’t know about the benefits of the VA Loan. And there’s a very simple explanation for that. For years, myths have been making the rounds about VA loans that have caused misinformation to be spread and caused quite a bit of mistrust among consumers.
McDade explains that these myths have led some people to think that VA loans are simply too good to be true. Others assume that there must be hidden fees that no one is talking about. These myths are keeping a lot of good families from taking advantage of the exclusive benefits that were designed with the best intention in mind — to make it easier for them to buy a home.
Recently, McDade joined forces with Millie on social media to dispel these costly myths and help more families see that the impossible is actually VERY possible. On MILLIE’s Facebook Live Thursday event last month, he highlighted the 5 exclusive advantages of the VA Home Loan. Check out the full video here.
ADVANTAGE #1 – You can buy a home with NO down payment with a VA loan.
Depending on the county limit, you can purchase a home with ZERO money down. If the sales price of the home is over the county limit, you only need to come up with a down payment on the difference. For example, if you’re moving to San Diego County, you can buy a home with a sales price of $612,950 with NO down payment. If the sales price of your dream home is $712,950, you need a down payment of $25,000. That’s 25% on $100,000, the difference of the sales price and the county limit. You can buy more home that you thought!
ADVANTAGE #2 – You get a more competitive interest rate with a VA loan.
The VA Loan Guaranty reduces the risk to lenders. That means we can offer you a lower, more competitive interest rate than other types of loan programs.
ADVANTAGE #3 – There is more emphasis on current income with a VA loan.
Unlike other loan programs, income guidelines for VA loans look at current income and the probability of continuance — that is, how likely you will continue that level of income. If you have recently started a new job or received a raise, you can use your new higher income to qualify for a loan.
ADVANTAGE #4 – There are more flexible qualification standards with a VA loan, which means loans often close faster.
In some ways, VA loans are easier to qualify for than traditional loans. Many special considerations are given specifically to military. Plus, VA loans close just as fast as traditional loans, if not faster. There is no government involvement that could potentially slow down the process.
ADVANTAGE #5 – You can buy a home even if your spouse is deployed.
With a VA loan, you can buy your home if you have the proper Power of Attorney. Don’t let deployment be the reason why you can’t settle down and create lasting memories in your new location.
We understand PCSing can be stressful. Get the facts and know we’ve got your back. Along with Millie, we at iDirect Home Loans are here to help you with resources you can trust. Life can go on after all.