Buying Your Home With a VA Loan
There are advantages f or those who buy ...
D R Horton is known for beautiful kitchens
D R Horton also features beautiful master baths
Las Vegas is home to both Nelli...
Energy efficient Resort Living in a 55+ Community at Shea
Homes Ardiente
Lennar Homes of f ers “awesome low rates
through ...
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Buying Your Home With a VA Loan


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A look at the advantages of using a VA loan to purchase your home as well as what type of homes qualify and a few potential drawbacks.

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Buying Your Home With a VA Loan

  1. 1. Buying Your Home With a VA Loan There are advantages f or those who buy their home with a VA Mortgage. The most popular is it allows buyers to purchase with Zero down. This conserves your cash f or expenses like moving or f urnishing your new home. Other advantages include more relaxed credit score criteria and f avorable interest rates. The Pros of VA Loans have been outlined in these articles: “What Are the Best 12 Reasons f or Choosing a VA Loan? ” by Rosemary Rugnetta includes many advantages a VA mortgage can of f er. One of our f avorites is tenth on list. VA Home Loans can be assumable. Today’s low interest rates could make this a valuable marketing tool in another 5 to 10 years. Interest rates are likely to be higher by then. “Lesser Known Facts About VA Loans” by Inlanta Mortgage provides inf o on who may qualif y f or a VA loan. Spouses who lost their mate while they were serving can qualif y. Those who have served in the National Guard or the Reserves can qualif y. Inlanta Mortgage’s ”100% VA Ref inance Loan: The Little Known Advantage of VA Mortgages” points out that VA loans can be re-vied at 100% Loan to Value. The f irst step is getting pre-approved f or your loan. This will conf irm that you qualif y f or VA f inancing and how much home you can af f ord. Anita Clark takes us through the process in “VA Loan Pre-Approval Process”. As the article points out, the minimum credit score f or a VA loan is now 620. Another great reason for using a VA loan. Once you have the pre-approval it’s time to look at homes. Not all homes will qualify for a VA loan. First, you can only use VA f inancing f or your primary residence. If you’re purchasing an investment property we’ll have to arrange conventional f inancing. Single f amily homes are ideal f or VA f inancing but they have to be in good condition. VA loans are designed to help our military secure suitable housing. This does not include a home that’s in need of major repairs or a f ixer upper. Some condos can be f inanced with a VA loan and some can’t. In order f or a condo to qualif y the entire complex has to be VA approved. Too many tenants or litigation will cost the condominium the VA approval. Las Vegas is home to both Nellis and Creech Air
  2. 2. D R Horton is known for beautiful kitchens D R Horton also features beautiful master baths Las Vegas is home to both Nellis and Creech Air Force Bases. We’ve been f ortunate to work with many of our troops who are stationed at both bases. The warm sunny climate also attracts a lot of retired vets. The most common f inancing our military clients use is the traditional “zero down” VA loan. This has been challenging over the last f ew years. As of today, we have 8995 homes listed f or sale. Only 3905 of those listings list VA under the “f inancing considered” option. If we exclude condos and town homes, we have 6644 single f amily homes available. Only 3357 of those single f amily homes are considering VA f inancing. Less than 1% of the homes sold in the Greater Las Vegas MLS over the past year closed with a VA Mortgage. Why do sellers try to avoid VA loans? One of the f irst objections to a VA loan is they take slightly longer to close escrow. Most loans can close in 30 days or less. VA loans can take up to 45 days. The biggest obstacle we’ve had with VA f inancing over recent years has to do with appraisals. VA appraisers have to abide by strict guidelines. Appraisers of ten give as much value to a f oreclosed property that needs landscaping, appliances, paint, etc., as they give to a home that’s in excellent, move in condition. The appraisal issue is especially challenging when a buyer is trying to buy a home that has multiple of f ers. Sellers who are concerned that low comps will drag their appraisal down may not want to consider buyers using a VA loan. As we outlined in “Tips For Dealing With a Low Appraisal”, there are ways to overcome this obstacle. VA Financing and New Construction Homes One of the best solutions we have f ound f or VA buyers is new construction homes. Most Las Vegas’ New Home Builders welcome our Veterans. Many are happy to work with VA loans and some have special incentives f or Veterans/Active Military. Not all builders of f er “special” incentives just f or Veterans. The incentives home builders do of f er are subject to change. A f ew current incentives include: Lennar Homes of f ers “awesome low rates
  3. 3. Energy efficient Resort Living in a 55+ Community at Shea Homes Ardiente Lennar Homes of f ers “awesome low rates through June with their pref erred lender. UAMC 3.375% (4.8% APR) FHA and VA loans. Plus VA puts Zero down, no mortgage insurance and no charge f or doc prep,” @LennarLasVegas on twitter. D R Horton currently of f ers 3% towards closing costs f or VA buyers who use one of their two pref erred lenders. Their pref erred lenders includes USAA. Shea Homes Ardiente community f or the 55+ buyers, has one of our f avorite programs f or the military buyer. Shea will give $5000 in options to cash buyers or any buyer who f inances through their lender. Af ter the $5000 incentive, they of f er a military incentive. Any additional options selected by someone who has been in the Military or who has a child active in the service, will receive an additional 10% of f options up to $10,000. We love that they acknowledge the retired vets and those who have children who serve in the military. This is a beautif ul guard-gated, 55+ community with great amenities. Buying with a VA Mortgage? You should carefully consider is it best to buy a new home or a resale home? In addition to special incentives f or the military, many builders of f er assistance with closing costs, appliance packages, etc. These incentives on new homes make them competitive with resale homes. And with a new home, you will not have to worry about multiple of f er situations or competing with cash buyers. Appraisal problems aren’t as likely with a new home. The new home builders generally have a tract record with recently closed homes and comps in the resale market. They’re in a better position to gauge where a home might appraise than the seller down the street who is convinced their home is the nicest in the neighborhood and an appraiser will give it $100K more than similar homes just because… Check out Lennar’s Lantern Gardens Community - Debbie Drummond has over ten years experience in the Las Vegas Real Estate Market. She specializes in luxury homes and high rise properties. If you’re buying or selling a Las Vegas home, call (702)354-6900 or email We’ll be happy to assist you in your move.