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VA Loans – Tips You NEED to Know

Did you know as an investor you can assume a VA loan? FHA and USDA do not allow this but the Veterans Administration does. Here are a few more factoids you should know when working with Veterans…

  • The VA announced on May 29th that they are implementing a targeted moratorium on foreclosures for Veterans with VA-guaranteed loans through December 31, 2024. This will allow Veterans who might be underwater (i.e. purchased with no money down after April 2022); the ability to stay in their homes while mortgage servicers implement the VA Servicing Purchase Program. This is where the VA purchases modified loans from the loan servicers, holding them as VA direct loans, keeping Veterans in their homes with reduced fixed payments. If you are working with Veterans in need, here is the news release with resources.
  • On May 21st news broke of the VA’s intended temporary lift of their ban on VA buyers paying their real estate agent compensation. This Circular is due out on or before June 12th.
  • Ask your Veteran if they have any disabilities. I am still surprised how many Veterans do not know they can waive their funding fee if they meet the requirements and apply for VA disability benefits. I am equally surprised how many lenders don’t ask leaving thousands of dollars on the table for your buyer.
  • Veterans, once homeowners, can streamline refinance with an IRRRL every time the rates drop. If they are disabled, even with a 0% disability, they can refi over and over again with no funding fee!!
  • Have 5 or 6% in seller concessions? Traditional closing costs do not go against the 4% limit on VA concessions. We can pay all closing costs (underwriting fee, title fees, escrow) then get an additional 4% to buy down the rate… or pay off a consumer debt that will help your VA buyer qualify for more!

Viva la VA!

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