Housing market

How to stay competitive using a VA loan in a sizzling housing market – CNBC

Summary

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In a sizzling housing market, some military families using VA loans are struggling to buy homes, real estate experts say.

VA loans, mortgages partly guaranteed by the U.S. Department of Veterans Affairs, financed 14% of home purchases from July 2019 to June 2020, according to the National Association of Realtors. The loans generally have no down payment, competitive interest rates, no private mortgage insurance and lower closing costs. 

However, …….

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PeopleImages | Getty Images

In a sizzling housing market, some military families using VA loans are struggling to buy homes, real estate experts say.

VA loans, mortgages partly guaranteed by the U.S. Department of Veterans Affairs, financed 14% of home purchases from July 2019 to June 2020, according to the National Association of Realtors. The loans generally have no down payment, competitive interest rates, no private mortgage insurance and lower closing costs. 

However, today’s red hot market has some sellers passing over government-backed mortgage offers, such as VA loans, expecting a faster or smoother closing with other options.

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“The seller wants the most amount of money with the least amount of hassle,” said Cedric Stewart, real estate agent at Keller Williams in Rockville, Maryland, explaining that sellers worry certain mortgages, such as VA loans, are more likely to fall through.

Indeed, 94% of real estate agents said sellers are most likely to accept an offer with conventional financing over a government-backed loan, according to an April 2021 survey from the National Association of Realtors.

However, many of the concerns about VA loans are outdated, said Caitlin Turkovich, veteran and branch manager specializing in VA loans at Union Home Mortgage in Las Vegas.

Source: https://www.cnbc.com/2021/11/11/how-to-stay-competitive-using-a-va-loan-in-a-sizzling-housing-market.html