Second VA Loans with Tony Alder
http://www.youtube.com/watch?v=jv_splYuqgE
DALE: Good afternoon. This is Dale Snyder with The Snyder Group, team focus real estate Keller Williams Realty. Thank you for your time. Today’s topic of discussion is going to be second VA loans.
Tony Alder, with Evergreen Homeloans, thanks for your time today Tony.
TONY: Sure. Happy to be hear Dale.
DALE: Awesome! So Tony and I were talking the other day in one of our team meetings. And a lot of us weren’t aware that you could do a second VA loan. I thought we should snap a little video about it and have you explain it. Could you dive in for us?
TONY: It’s kind of a... The second VA loan almost could have a dual meaning. A lot of people are not aware that they could even use their VA a second time. Meaning they purchased a home, lived in for a number of years, then sold the home. And they thought it was a one shot deal. And not realizing they can go back and have that entitlement reinstated and go buy another house.
But the second benefit, that even a lot of lenders don’t realize and definitely a lot of realtors and a lot of buyers don’t realize is that the VA can actually be used to purchased two homes simultaneously, not buying them both on the same day.
But if you’ve owned a home for a couple of years, and maybe market conditions aren’t right that you chose to sell that home. And you want to go buy another home but you really need to use the VA, depending what the purchase price was of your first home. That would determine how much of your VA entitlement was used but you have financeable VA entitlement for up to about $417,000 total loan amount with no money down.
So therefore, if your first home was possibly $200,000 range and you want to buy another home. You would have room to go buy another home on your VA up to about another $200,000 to $217,000 without making a downpayment. And you could actually go higher than that if you wanted to make a minimal down payment beyond that amount. But who wants $217,000 in that scenario without making any down payment out of pocket. And have literally 2 VA loans live and in action at the same time, using one as a rental now because you’ve moved out of that
property and moving in into the new property.
Of course the VA, when you take the VA loan out the property your purchasing has to be designated as your primary residence.
DALE: Okay, that was my next question.
TONY: Yes, the home you’ve lived in. And once you’ve met the occupant’s requirement and lived in the home for over 12-months. At that point you could then designate that as a rental property and move on to buy the new property with a VA.
DALE: Thanks Tony. Any other questions or things that you think that VA buyers should be aware of?
TONY: Well, just a reminder to VA buyers, which I’m sure they’re pretty well aware of the fact that they can always get into the property with no money down. Not just on the purchase price. Assuming you have the right amount of VA entitlement, you can get it with no money out of pocket for the loan amount, but closing cost can also be paid by the seller in the transaction so
the Veteran doesn’t have to come in with any money for the closing cost if the sellers are able to negotiate that - if the buyer and seller are able to come into terms on their contract that way.
If for some reason they’re not, there’s some circumstances where the lender can assist you in closing cost that can be a little more of a detail conversation, maybe on a case by case basis so feel free to call me on that at any time. You can always reach me at 702-605-8047 and we can discuss that further.
But the real key at VA loans, they’re the beauty of their own. Even without no money down, there’s no monthly mortgage insurance on VA. You pay that one time VA funding fee which is financed into the loan and you have no mortgage insurance. And that’s the only type of loan you’re going to get away from with that - right out of the gate.
DALE: Yeah, that’s important now that FHA is gone. I don’t want to go to side tangent but FHA they’ve increased theirs. That’s a very important thing.
TONY: Absolutely. FHA mortgage insurance has gone up both in the yearly and in the initial amount. And conventional, you’ve got mortgage insurance initially unless you put 20% or more down.
DALE: Yeah.
TONY: So here, we’re talking about 100% loan amount available to an individual with no
monthly mortgage insurance. It gives you the lowest possible monthly payment on 30-year fixed rate loan.
DALE: That’s awesome. That, you know, they’re taking care of our Veterans. I think that’s an amazing thing.
DALE: Yeah, that’s fantastic.
So you know in tying that together. You know, our market shifted a lot, what I’m tagging it as “we’re going into a stabilization period where inventory is going to start to increase and the buyers are going to have more options in their negotiations.
So as Tony pointed out, there’s going to be a lot more opportunities in the near future here to get your closing cost covered by the seller so you can go out and purchase with no money out of pocket and then turn your current home into an investment property.
So there’s a lot of opportunities for you. You know Tony’s an expert at this. He’s been in the business for 27, 29, 30 years.
TONY: Almost 29, years.
DALE: Yeah, I mean he’s dynamite. I mean we were affiliated with him because he gives top notch service and really knows his stuff. So you know, once again, what’s your number Tony so they can reach out to you?
TONY: 702-605-8047
DALE: Alright, awesome. Well, thanks for your time Tony. And thanks for your time for watching this video. This is Tony Alder and Dale Snyder, with The Snyder Group, team focus real estate at Keller Williams Realty. Have a fantastic day.
TONY: Thank you.
