When You Should Use Your VA Loan Benefit

Dated: 07/11/2018

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the Hampton Roads region is home to multiple Military bases, and largely owes its economic success to the military and its members, Who put the needs of the country ahead of themselves and their families on a daily basis. Often times during that service, Members and their families move multiple times, often staying at a duty station for just 4 years, less if you're in the Coast guard. So, do you rent? do you buy? Do you live in base housing? The answer is different for everyone!  whether you are Stationed at Norfolk Naval Station, Oceana Air force Base, Langley Air force base, Joint Expeditionary Base Little Creek, Damn neck Naval Base, or one of the other bases that dot our landscape, you will have to live somewhere while you're here.  lets look at a few scenarios.

It could be cheaper than renting: Hampton Roads has a very strong rental market, largely due to the number of folks who move in and out. The DOD determines the median price of renting a home in the area in order to establish a service members BAH.  Because this is adjusted annually, Nicer than average housing tends to increase annually as well, causing the rent for homes in sought after areas, and top school districts to be well above the BAH provided to service members. 

You likely could buy for little or no money up front: The best part of a VA loan is the down payment, Many members qualify with no down payment, of course there is still closings costs for a mortgage, but in some situations those can be paid by the seller of your new home. 

Preferential Interest rates: The Va doesn't actually lend money, or hold mortgages. Rather they act as a financial guarantee in case of default. In other words if the borrower doesn't pay, most of the remaining balance is paid to the bank by the VA. Because there is much less risk to the bank, VA loans often have much lower interest rates than if the same borrower used a conventional loan!  The loans are also assumable, So if you decide to sell to another VA Borrower, they could assume the loan, at the rate you have, instead of what the current rate is. (only going up from here) 

No Mortgage Insurance Required: Most Government loan programs will require a separate mortgage insurance to be purchased, the cost of which is added to your premium. VA loans waive this extra expense.  this could be an additional savings of a few hundred dollars a month over a comparable government backed loan! 

Replenishing product:  When using a VA loan, the borrower must be buying their primary residence, It cannot be used for vacation homes, second homes, investment properties, or other uses. However, it is not a one time use product. Each borrower has an allowable limit they can borrow under VA guidelines, and the money you borrow for a home now will be "returned" to that allowable limit once your pay off the mortgage.

Military housing isn't premium:  Sure, the military housing may be available, depending on the time of year, rank, and dependents, But when they say Basic Housing, that's what they deliver. You work hard, you should be able to have an oasis of your own, that's exactly what you want. 

Every Situation is unique, However, for most folks, the answer to the question: When should i use my VA loan Benefit, is NOW. Buying your own home gives you the control, You get to pick Upgrades, Colors, Pet policy, etc. the best parts is you also get the keep the equity. as values continue to rise across our area, you don't have to worry about next ears rent going up. 

so, if you are active duty you may be asking yourself, will I be here long enough to be able to sell? again, there is no definite answer, as values change, and condition of the home changes as well. the answer is probably! 

For more information about using your Va loan to purchase a home today, Call me at 540-429-5732, email me at Zach@abramshomes.com, or stop by one of my websites. Zach.abramshomes.com or www.Navyhouses.com I have partnerships with multiple experienced VA loan lenders who can help answer your specific mortgage questions. 

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Zach Grier

As an office top producer to 2017 and new construction specialist, Zach enjoys helping folks purchase their dream home. He left a successful career in automotive Management to pursue his passion for R....

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