How Active Duty Military and Veterans Can Buy A Home with $0 Down and No Closing Costs!

Want to learn how Active Duty Military and Veterans can buy a home with $0 Down and No Closing Costs!?

Sound too good to be true?…it’s not!

I too am a Veteran. I served honorably in the Marine Corps from 1992 to 2000…and there is one thing that I know, and not many active duty or vets know about, and that’s how amazing the VA Home Loan is.

The VA Loan is Awesome!

I’ve heard many times from Veterans and Active Duty personnel, that they were talked out of the VA loan from either their Realtor or Loan Officer.

The Realtor may say something like, “Seller’s don’t like the VA loan”.

and the Lender may have told them that there are better loan programs that the VA loan.  VA loan wasn’t as good as other options.

I call B.S. on it!

If you share the same feeling as me that it’s the less you have to spend out of your own pocket, the better. Then this is the loan type for you.

Buy a Home with $0 Down!

This is the only option to buy a home with $0 down, and it’s only available to the active duty military or veteran.

You put your time in to serve, and this is one of your benefits…and it doesn’t matter if you were active duty or reserve.

Here is how it works

In Orange County, you can buy a home with a purchase price up to $636,150 with $0 down payments…this is because the VA guarantees your loan against default.

Other loans get their guarantee from the amount of money you put down (conventional loan), they figure that if you are going to put 10%-20% down then you are less likely to default, and if you do, they’ll get their money from the sell of the home.

The FHA program requires 3.5% down, but limits you to a purchase at $636,150…you can’t go over that, unless you bring in the difference, plus pay the 3.5%.

How the math works out.

If you were going to get a conventional loan you’d have to put 10%-20% of the purchase property as a down payment, and on a $636,000 home loan…that $63,000 – $127,000 out of pocket! Why would you do that if you don’t have to?

The other option is an FHA loan. You would put 3.5% down, approximately $22,000. Again, why would you do that if you don’t have to?

Buying a Home for more than $636,150

But what if you want to purchase a home loan for more than $636,150?

If you were to get  conventional loan, you would still just put down 10%-20% of the purchase price…so the hire the purchase price, the more money out of pocket.

An FHA loan wouldn’t make much sense, because you would have to pay the overage, dollar-for-dollar, of the purchase price over $636,150, plus you’d have to pay the 3.5% down.

With a VA loan, you’d be paying about 3.3%

So let’s do the math.

What is you wanted to buy a home for $736,150

With a VA loan, you don’t put down any money on the amount up to $636,150…and then you pay 25% of the $100k over and above the $636,150. So you’d put down $25,000, which is 3.3% of the $736,150 purchase price.

If you were want to buy the same house, with the same terms with an FHA loan, then you’d have to pay dollar-for-dollar over $636,150. So, you’d have to put down $100k, and you’d still have mortgage insurance.

If you were to buy the same house, with the same terms with a conventional loan you’d put down 10%-20%. So, with this scenario  you’d have to put down $73,615 –  $147,230.

Or what if you wanted to buy a $1M home?

Again…FHA you’d have to bring in dollar for dollar over $636,150 or $363,850…doesn’t make any sense!

or…with 10% – 20% conventional you’d have to pay $100k – $200k down.

With the VA loan, you would put down 25% of the $363,850 over the the $636,150…which is $68,075 or 6.8% of $1 million.

No matter which way you look at it…the VA home loan for active duty personnel is a great choice.

Getting the Seller to pay for the closing costs

With any type of home sale, you are going to have closing costs.

The majority of these costs are due to the costs of obtaining the loan, in total you are looking about 2.5% of the purchase price.

Typically, as the buyer / borrower you would have to budget for the not just the down payment, but you would also have to budget for the closing costs.

What if I told you, the closing costs would be paid as part of the negotiations. Meaning that the Seller would pay it.

Sound too good to be true?

It’s not.

Stop Paying for Someone Else’s House

If you are active duty military, or veteran and you wan’t to own your own home, then reach out to me.

Take advantage of the benefits you earned by serving our country!

Rates are still at historic lows, and if you can buy a house for less than what it would cost you to rent, then why wound’t you?

Worried about your credit?

The VA loan is the most forgiving home loan on the planet. Even if you’ve been turned down before, you still may qualify.

I work with the best team in the industry, and can refer you to an experienced loan officer who can evaluate your situation with no cost or obligation. you will either come out with an approval, or you will know exactly what needs to be done so we can get you into Home ownership.