Page 4 - The Panozzo Team - VA Home Loan Guide

WHY THE VA LOAN IS A GREAT PRODUCT!

Before we get into the nuts and bolts of what makes the VA home loan so great, let’s
look at some of the benefits that will also benefit you.

1. The VA home loan has no loan limits! This means homes as high as $4
Million are treated as regular loans, no different than if they were $300,000 or
$400,000. You can still close in 30 days or less, there’s one appraisal and you
only go through underwriting once!

2. There is no mortgage insurance on a VA home loan which means you, the Veteran are
saving hundreds of dollars per month on your payment which helps you qualify
for a higher priced home or lower mortgage payment.

3. The VA analyzes residual income as opposed to strictly looking at the debt-to-

income ratio. Loans can go up to 70% DTI! which is unheard of on Conventional
loans.

4. The VA has no credit score requirement but lenders can differ in what they will and
won’t accept.

5. There are no extra fees to the seller on VA loans. The Veteran is allowed to pay for any
normal fees such as termite inspection, well water inspection, septic inspection,
etc. This does not have to be passed on to the seller.

6. Foreclosures, Short Sales, Bankruptcy – The VA only has a 2 year wait period
before the Veteran is able to use their VA home loan.

7. 100% financing – VA loans do not require a down payment which greatly reduces
closing costs to the Veteran helping them qualify whereas Conventional or FHA
buyers may have a hard time coming up with closing costs as well as the down
payment.

8. Appraisals – The VA loan process allows for 2 extra “bites at the apple,” so to
speak, to avoid the appraisal coming in low. If the appraiser thinks the appraisal
isn’t going to meet contract price, they will let the lender know and then the
lender and agents work together to provide comps to the appraiser to support
the value. If the appraisal comes in low, the Veteran and lender have the ability
to initiate the “reconsideration of value” process whereas the lender goes directly

to the VA to override the appraiser to try and get more value.

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