Many veterans have turned to buy a house with VA or USDA loans should they qualify for it. One of the benefits of being a veteran is the potential of acquiring a house with absolutely $0. Unlike conventional loans, both USDA and VA loans require very flexible qualifications which include manual underwriting availability, reduced scores, and also, shortened time frames for short sales, bankruptcies, and foreclosures. In this article, we hooked up with a reputable home buyer in Seattle to discuss some basic questions one might about USDA and VA loans and also how to stop foreclosure fast .
- How can people buy a home with $0 down?
The possibility of qualifying for a VA loan depends simply on if one is a Veteran. It happens to be the cheapest mortgage programs one could lay hands as they do not require mortgage insurance. Thereby enabling a borrower to save lots of money in the process. In relation to the VA loans, there are the U.S. Department of Agriculture (USDA) loans which are implemented in an effort to increase rural development. This program is best for families with low-moderate-income and one of its huge benefits is its mortgage insurance premium (MIP) which is the lowest you can come across today.
- How much money should people plan to have to cover other costs, like closing costs?
Alexander Romano who is a real estate investor and co-founder of Iwillbuyhouse stated that
“It is important to note that if the veteran has little or no money for the closing cost of the property, He/she can notify the real estate agent that the house is purchased with a VA loan and in turn, the seller may be made to cover some of the closing costs.”
However, less expensive homes have a closing cost ranging from (3-5) % while bigger home purchase prices have a closing cost ranging from (1-3)% of the loan amount.
- What about banks that promise $0 down loans beyond VA or USDA loans? Are they a good idea?
This has its own pros and cons but, in my experience, the borrower tends to be in the losing end in the long run. The borrower may acquire the property as at when they want it and also have much cash at hand to sort out other stuff but the bank will get the notion that the borrower is as at higher risk and therefore will charge higher mortgage rates.
- Are there any downsides to $0 down loans? What should people do before applying for a $0 down home loan?
If the borrower wants a win-win situation, in the end, they need to understand what they are getting into before signing the papers. The need for an expert real estate investor, accountant and a local attorney to oversee things can never be underestimated when it comes to a situation like this. If you want to stop foreclose on your property, in the long run, you have to ensure that the right hands are on deck to you with ample foreclosure help all the time.
Sean Stephens made us understand that both USDA and VA home loans are very specific when it comes to eligibility. Both of these loan programs offer unique criteria for eligibility, which are completely different from FHA and Conventional loan qualifying guidelines. USDA guidelines specify that home buyers must meet household income limits as outlined per county and the property being purchased must be located in a USDA eligible area. On the other hand, VA loans are only available to eligible military service members and in some cases surviving spouses.
Should you have more questions on VA and USDA loans or would want to stop foreclosure fast, or would want reasonable cash for houses do feel free to get in touch with Alexander Romanov for expert advice and best homebuyer deals available on the market.