Yes!!! you can re-use your VA Home Loan Benefit!!!


Rumors of red tape and strict guidelines have long surrounded the VA home loan program. But as awareness grows, more Veteran homebuyers are discovering how easy it is to use and reuse this lifetime benefit.
For military homebuyers facing frequent relocation, the VA home loan provides surprising flexibility.

Entitlement Basics

Eligible Veterans have two layers of VA loan entitlement, which is a set dollar amount the VA guarantees to pay back if you default. Basic loan entitlement is $36,000, but there’s a bonus or “second tier” of entitlement worth $70,025 in most parts of the country. The VA loan provides lenders a 25% guarantee, so that combined $106,025 in entitlement means qualified buyers can borrow up to $424,100 without making a down payment. Buyers in high-cost areas may be able to tap into even more purchasing power.

Retain a Home and Buy Again

Second-tier entitlement makes it possible for qualified buyers to hold two or more active VA home loans at the same time. This scenario is common among active duty homeowners facing temporary relocation or PCS. It allows them to keep their first home and buy a primary residence at their new duty station. The biggest hurdle here is often affordability, since you'd be on the hook for both monthly mortgage payments. Some lenders can offset the first mortgage with rental income if you find a reliable tenant.

Sell a Home and Reuse the VA Loan

VA homeowners who sell their home, repay the loan, and dispose of the property can seek to restore their full VA loan entitlement every time. Once your entitlement is restored, you're freed up to buy again; you’ll just need to fill out some paperwork to get the process started. It’s best to leave a cushion between a sale and a new purchase, but an experienced lender can help ensure a smooth process if you’re on a tight schedule. In some cases, VA buyers are even able to arrange for a simultaneous closing, signing off on the sale of one home the same day they purchase another.

Default and Foreclosure

In the unfortunate event of default or foreclosure on a VA home loan, things can get a little trickier. Waiting periods and post-foreclosure lending guidelines are obstacles. But they don't mean the end of the road in every scenario—even if a part of your entitlement is compromised.
VA homeowners who default lose whatever entitlement was utilized to secure the loan, but they may be able to purchase again with another zero down VA loan, depending in part on how much entitlement is left. Specialized VA lenders know the ins and outs of entitlement.
The VA loan program has made homeownership accessible to millions of Veterans and military families. Zero down options coupled with freedom from private mortgage insurance and prepayment penalties make a VA loan hard to beat. Finding a lender you can trust is crucial when it comes to maximizing your VA loan benefit.

This blog content is NOT my original content.  This was provided by Veterans United and was written By Chris Birk, Director of Education at VU. 

 

SO YOU WANT TO BUY A HOME?  GREAT!  After all, it is usually cheaper than renting!!!

If you would like a more personalized step by step guide on what you would need to do to purchase a home with your VA benefit, please let me know.  I am a licensed REALTOR in North Carolina and Tennessee and my team and I would love to help.   

Contact: Deana Watson  |  (615) 584-0377    Deana@signaturegroupteam.com

 

Here are a few of the basic steps to buying your next home….

Step 1: Decide to Buy

The decision to purchase your first home is one of the biggest and best decisions you could ever make. After all, a home is the largest (and most emotional) investment most people will ever make. So, how do you know if it’s the right time for you to buy your first home?

• There is never a wrong time to buy the right home. The key is finding a good buy and taking the time to carefully evaluate your finances.
• A home purchase is an important step in the path to long-term wealth. Purchasing your own home is a great investment that provides specific financial advantages, including equity buildup, value appreciation potential and tax benefits. It’s also an automatic savings plan that you cannot get from renting!
• Here’s the most important rule for keeping your stress to a minimum: you don’t have to know everything. Your Keller Williams agent is ready to help you through every step of the process.

Step 2: Hire Your Agent

When you’re looking for a real estate professional to help you, know that above all else, good agents put their clients first. This is your dream, and your agent is your advocate to help you make your dream come true.
A great real estate agent will:

1. Educate you about the current conditions of the market.
2. Analyze what you want and what you need in your next home.
3. Guide you to homes that fit your criteria.
4. Coordinate the work of other needed professionals throughout the process.
5. Negotiate with the seller on your behalf.
6. Check and double-check paperwork and deadlines.
7. Solve any problems that may arise.

Step 3: Secure Financing

Ultimately, your lender will pre-approve you for a certain amount, but YOU will decide what you’re comfortable paying every month. Remember, your lender only sees your finances on paper. It’s up to you to decide how much you’re willing to stretch your budget in order to get into your dream home.
Be sure to follow these six steps to financing your home:

1. Choose a loan officer.
2. Make a loan application and get preapproved.
3. Determine what you want to pay and select a loan option.
4. Submit to the lender an accepted purchase offer contract.
5. Get an appraisal and title commitment.
6. Obtain funding at closing.

Step 4: Find Your Home

So you are preapproved and ready to begin your search. But how or where do you begin? There are a lot of homes out there and diving in without a guide can become overwhelming and confusing. A great agent will help you more accurately pinpoint homes that fit your criteria. The right home will meet all your important needs, and as many of your additional wants as possible. Some questions you might ask yourself include:

• What do I want my home to be close to?
• How much space do I need and why?
• Which is more critical: location or size?
• Would I be interested in a fixer-upper?
• How important is home value appreciation?
• Is neighborhood stability a priority?
• Would I be interested in a condo?
• What features and amenities do I want? Which do I really need?

You’ll learn as you look at homes, your priorities will probably adjust along the way.

Step 5: Make an Offer

Once you’ve found a home you love, the next step is making a compelling offer. While emotions are probably in high gear once you’ve found a home you love, it’s important to remember that a home is an investment. Your agent will research similar properties in the neighborhood to help you determine the market value, and fair price, for your home. Look to your agent to explain and guide you through the offer process.

• The three basic components of your purchase offer are price, terms and contingencies.
• Price is the dollar amount you are approved for, willing and able to pay.
• Terms cover the other financial and timing factors that will be included in the offer.
• Contingencies are clauses that let you out of the deal if the house has a problem that didn’t exist or which you weren’t aware of when you went under contract. They specify any event that will need to take place in order for you to fulfill the contract.

Step 6: Perform Due Diligence

Just because you love a particular property doesn’t mean that it’s perfect. In fact, this is where reason has to trump emotion. You’ll need to have a property inspection (which we highly recommend you attend) that will expose hidden issues. This way you’ll know what you are getting into before you sign closing papers.

• Your main concern is the possibility of structural damage. This can come from water damage, shifting ground, or poor construction when the house was built.
• Don’t sweat the small stuff. It’s the inspector’s job to mark everything discovered no matter how large or small. The inspectors report may be long, but, things that are easily fixed can be overlooked for the time being.
• If you have a big problem show up in your inspection report, you should bring in a specialist and if the worst-case scenario turns out to be true, you might want to walk away from the purchase.
• Even if your home passes inspection, you’ll still need to buy a home owner’s insurance policy that protects you against loss or damage to the property itself and against liability in case someone sustains an injury while on your property.

Step 7: Close

Once you’ve made your offer and have completed the inspection process, you’re in the “home” stretch! But, in order to ensure that you don’t put your closing date, or your mortgage at risk, you have a few pre-closing responsibilities that you’ll need to be mindful of. These include:

• Staying in control of your credit and finances. If you are tempted to make any large purchases during this time, it’s best to talk to your lender first.
• Keeping in touch with your agent and lender, returning all phone calls and completing paperwork promptly.
• Communicating with your agent at least once or twice a week, and verifying with your lender that all mortgage funding steps are completed.
• Conducting a final walk-through of the home with your agent.
• Confirming with your agent, home insurance professional, and lender that you have the settlement statement, certified funds, and evidence of insurance lined up prior to closing.

Step 8: Protect Your Investment

Congratulations, and welcome home! The home-buying process is complete, but just like any big process, there’s a maintenance plan! It’s now your responsibility, and in your best financial interest, to protect your investment for years to come. Performing routine maintenance on your home’s systems is always more affordable than having to fix big problems later. Be sure to watch for signs of leaks, damage, and wear.
And remember, just because the sale is complete, your relationship with your agent doesn’t need to end! After closing, your agent can still help you – providing information for your tax returns, finding contractors and repair services, and even tracking your home’s current market value.

VA home loan image credit of Veterans United 

Here are a few tips for sellers I found when reading an article recently that I thought I would share….Each year, it seems the housing market takes on a different tone – and whether it’s going to be a sellers’ market with inflated prices and bidding wars, or a buyers’ market with tons of choices and low prices – there’s no denying that the 2015 spring housing season is upon us. So what does it have in store? Well, if you’re thinking of listing your home, that’s an important question.
Here are some market insights that will give you a head start!

Right Now = A Great Time To Sell
The winter home selling season was crippled by the polar vortex, especially in the east and northeast, so there’s pent-up demand from buyers who’ve been waiting for better weather to brave the house hunt. Mortgage rates are still at historic lows, so buyers ARE poised to buy and ready to hit the streets.

Know Your Numbers: 60%
  Sixty percent of all homes in 2017 will be bought and sold from April to August. Putting your home on the market at the beginning of the selling season will help your chances of snagging a winning offer before buyers turn their attention back to school starting in September.

Price It Right
 Many metros in the country have seen double-digit price increases in the past year. But this last quarter, prices started to slow nationally – and pricing is a critical component to getting your house sold. With this fluctuating market, you need to look at comps of similar homes in your area, and recency matters: make sure you’re looking back no more than 60 days. The sale price of homes that sold recently paints a much better picture of what to expect than the price of homes that sold six months ago (or of homes that have yet to sell).

It Pays To Be Ahead Of The Curve
Trying to get a jump on the competition? Right now we’re on the cusp of prime selling and buying season, and if you list soon, you’ll have less competition than you would if you put your house on the market in May or June, when more homes will flood the market. Since it’s still early, your home can have its ‘moment in the spotlight’ more than it will when inventory increases – and the buyers who are braving the cold to house shop are clearly motivated.