Do you only offer VA loans?

I am a full service mortgage broker. Although VA is the majority of what I do, I also have other mortgages like FHA, Conventional, USDA and Non QM.

Do you only service the Dayton and Cincinnati markets?

Dayton and Cincinnati are the majority of my business. However, I'm authorized to offer mortgage loans in 40 states. For loans outside of these areas, I can refer them to friends in the business.

Are VA Loans Harder To Close?

A recent question posed to me was, “Are VA loans harder to close?” It may come as a surprise, but only about 50% of eligible veterans take advantage of VA home loans each year. I discovered this staggering statistic while working on my book, and it made me realize the impact of misinformation surrounding VA loans.

Key Takeaways

Low Utilization Rate: Shockingly, only about 50% of eligible veterans utilize the VA home loan benefit each year, largely due to misinformation from realtors and potential sellers.
Flexible Underwriting Standards: VA loans feature flexible underwriting guidelines designed to facilitate loan approvals, making them a competitive option for homebuyers.
Common Misconceptions Cleared Up: Contrary to popular belief, VA loans do not take longer to close than conventional loans, and minor property condition requirements are typically easier to meet than many assume.

Take the 30 second mortgage quiz to see if you qualify

Understanding the Flexibility of VA Loans

One of the most important points to know is that VA loans actually have extremely flexible underwriting guidelines. The primary goal of the VA is to help lenders approve loans for veterans, making it vital for sellers and realtors to recognize the value of VA offers. Many objections arise based on misunderstandings, particularly around credit score issues. The VA does not have a set minimum credit score, which opens the door for more veterans to qualify.

Common Objections Dispelled

Here are several common misconceptions about VA loans that need to be addressed:

Length of Closing: A frequent objection is that VA loans take longer to close than conventional loans. This isn’t true; they typically close in about the same timeframe.
VA Appraisal Deadlines: Unlike conventional appraisals, which can sometimes be delayed, VA appraisals come with strict deadlines. Appraisers can face consequences if they don’t adhere to these timelines. Each state has different standards; for example, in Ohio, there’s a set timeframe for the appraisal process.
VA Property Condition Standards: Many people fear that the property condition standards for VA loans are excessively stringent. However, they are generally more lenient than conventional standards. Often, only minor issues need to be addressed, such as installing handrails or ensuring adequate safety measures.
Termite Inspection Costs: Another outdated concern is about who is responsible for covering the cost of the termite inspection—typically around $100. The great news is that anyone can pay this fee: the realtor, lender, veteran, or even the seller.

Take the 30 second mortgage quiz to see if you qualify

Final Thoughts

In summary, the VA home loan is an incredible program that offers a multitude of benefits for eligible veterans. It’s essential to educate yourself about the facts surrounding VA loans, especially if you’re a realtor or involved in the home-buying process. This knowledge can help you better serve your clients and assist more veterans in obtaining the financing they deserve.

Have questions about VA home loans? Click here to contact me.

Licensing Info

I can originate VA mortgage loans anywhere that I’m licensed. I’m licensed in Alabama, Arkansas, Arizona, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, and Wisconsin. Additionally, our team can originate mortgages in several additional states through our corporate referral program.

How To Get A VA Home Loan With Bad Credit

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Carlos Scarpero

Carlos Scarpero is the founder of Scarpero.com and a mortgage loan officer focusing on VA and Non QM mortgage loans. He is also the author of VA Loans Made Easy.