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About the Veterans Administration Home Loan in MD & Northern Virginia.

About the Veterans Administration Home Loan in Maryland and Northern Virginia.

When a prospective home buyer contacts us with questions about homes for sale in the area, I usually try to determine their ability to finance the home they select to buy. Home buyers may not know how much home they can finance.  We can compute their home buying ability in about 2 minutes.  Then we're ready to tour.  We also inquire about whether or not they have Veteran Administration home loan benefits.

If the caller is Active Duty Military or has f ormer Military service and VA Benefits,
I know that they are probably eligible for the best home loan in the country.  Sure, that's a rather bold statement but I have yet to see a home loan that offers more opportunity for financing than the Veterans Administration Home Loan.

Search homes for sale in MD and Nothern Virginia HERE.

Closing Costs.  The immediate benefits of the VA loan include the ability for the seller to pay all of the VA buyer's closing costs. Further, the seller can also pay up to 4% of the loan amount to pay off debts such as credit card payments, loans, for the buyer.

This, combined with the NO DOWN PAYMENT LOAN the buyers can use, give the buyer more opportunities than they usually anticipated.  Most VA buyers know that they don't need a down payment but are unfamiliar with local closing costs, often 2-4% of the purchase price.

Some benefits of the VA home loan include:


1.  NO DOWN PAYMENT LOANS in the Maryland, Virginia, DC are up to $625,500.

2.  Generous DTI, debt to income ratios. 
The limiting factor is the requirement that, while the percentage of debt to income can exceed the 38 for conventional loans and 41 percent for FHA loans (the VA debt ratio can be up to 45%-50% or more), the Veterans Administration loans require that the borrower have residual income over the mortgage payment sufficient to pay normal living expenses depending on family size. 

3.  The Veterans Administration Home Loan is assumable
This feature offers additional opportunities when VA financed owners decide or need to sell.  If their home buyer also has VA benefits, the buyer's VA benefit can replace the owner/seller's benefit and the owner/seller has no further responsibility for payment and gets their VA home loan benefit restored.  If a buyer doesn't have VA benefits, they can still assume the loan but the seller's home loan benefit will not be restored (until that loan is paid off).


4.  The VA Administraction has a program for veterans and active duty home owners who are delinquent.  In fact, the VA home loan offers several ways to help a VA financed home owner and mitigate the owner's loss.

Some of the mitigation programs permit the Veteran or Active Duty owner to

* arrange a repayment plan for missed payments
* forebearance of the loan to arrange for a payment plan
* loan modification that may lower the amount owed, interest rate and payment
* arrange the time to sell the property
* permit the owner to manage a short sale
* accept a
Deed-in-Lieu of Foreclosure

We are happy to assist VA Home Loan eligible home buyers.


Lenn Harley, broker, homefinders.com, 800-711-7988.

Search homes for sale in MD and Nothern Virginia HERE.



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