Buying A Home With '0' Down Using Your VA Benefits - Active & Prior Service:
Their are several benefits using your VA and you may qualify even if you're not on active duty (prior service). Benefits include low to no money down, no closing costs, low interest rates, no monthly mortgage insurance and more...
The 1st step is to see if you qualify by speaking with a qualified VA lender. They will need a copy of your DD214 (service discharge papers), current employment information, income, any debt and credit scores. Based on the above information the lender will let you know what you qualify for and what your estimated monthly mortgage payments will be.
The 2nd step is to work with a licensed real estate agent that understand the VA process when buying. The qualified buyer's agent is a free service and they will show you the homes meeting your searching needs. Once a home is found they will negotiate the offer on you behalf, suggest any needed inspections, verify contract requirements are being met, prepare you for closing and then get you the keys to your home. The agents actually do a lot more behind the scenes but that was just the short version.
To find out about qualifying & using your VA benefits to buy with '0' down - Free! click here.
3 Things To Know Before Buying A Foreclosure:
Your buyers may be drawn to distressed properties. After all, the No. 1 reason to buy a foreclosure is the potential for a good bargain.
Indeed, discounts often can range from to 20 or 40 percent off on a short sale or foreclosure compared to a sales price of a nondistressed home. But despite the big bargains, buyers need to tread carefully before jumping in. Here are some of the following tips in buying a foreclosure in a recent article at Business Insider.
--Beginners may want to focus on REOs. New buyers may want to avoid short sales, which often come with lengthy negotiations, or foreclosure auctions that often require all-cash payments. On the other hand, REOs can be similar to a traditional home sale in some ways and can offer some of the biggest bargains. A bank isn't emotionally attached to a REO; it's just looking to recoup as much of its losses as possible. So the lender is often more willing to capitulate on price.
--Don’t forget the inspection. Many distressed properties are sold “as is” and can come with a host of problems if buyers aren’t careful. Getting a home inspector to inspect the home prior to any purchase. Buyers will then have a list of any potential problems with the home, along with estimates for costs of repair. Buyers can then use the list to possibly negotiate a lower price.
--Don’t expect appreciation right away. You’ll also likely want to caution buyers who believe that because they’re buying at a big discount they expect to see appreciation right away. Educate your buyers about the market. It's important to not make the mistake of counting on any major price appreciation in the near term.
Can You Use Your VA Benefits For Investment Homes?
The VA loan can be used to purchase up to a 4-unit house so long as it is owner occupied. These homes are also known as multi-family dwellings, and can be referred to as 2, 3, or 4 family houses. These homes are typically separated units with each functioning as a separate apartment.
Below are
some basics
to consider:
1. Identify
the area you
are
interested
in buying:
If you are
interested
in
generating
rental
income it is
important to
look at
areas that
have low
home values
with higher
rental
amounts. The
lower the
cost of the
home the
lower your
monthly
payment
amount. The
higher the
market rents
are in the
market then
the more
that your
tenants will
contribute
to your
payment and
more of your
money that
you'll keep.
2. Start
looking at
homes: Any
realtor can
set you up
with
Multiple
Listing
Services
(MLS)
updates
based on
your
criteria
that you
tell them.
Also, a good
realtor
knows
markets that
would best
suit your
criteria and
can guide
you in were
to start
looking. You
tell them
the area
that you are
interested
in looking
at, your
price range,
and types of
homes
(single
family, 2, 3
or 4 family
units).
Then, you
will start
getting
emails with
homes that
meet your
criteria
that if you
want can
start
scheduling a
viewing.
3. Know your
costs: The
amount that
you will be
paying
monthly is
your
principle,
interest,
taxes, and
insurance is
what you
should focus
on. You can
use VA Loan
Payment
Calculator
and input
different
scenarios to
see what
your payment
would be.
There are
also other
costs such
as
water/sewer
that I
typically
allocated
$100 a month
for. Also,
there are
costs for
maintaining
any home
single or
multi-family
which you
will need to
consider and
depends on
the age and
condition of
the
property.
4. Know your
rents or
potential
rents: You
can ask your
realtor what
the average
rents are in
the market
that you are
looking at.
For example
if average
rents in the
market for
1-bedroom
apartments
are $1000,
and the
units in the
multi-family
home that
you are
looking is
average to
what is
available
market, then
you can use
that to
determine
what you
could charge
if the units
are vacant;
or, what you
could charge
if there are
tenants
already in
but paying a
lower
amount.
5. Other
considerations:
If you go
this path
you will be
a landlord
which is
something
that is a
small
part-time
job and not
for
everyone.
Having some
basic
knowledge on
appropriately
screening
applicants
and knowing
the state
law will go
a long way.
Basic items
for
screening
applicants
include
doing a
credit check
and
collecting
and calling
references.
Do-It-Yourself Home Improvements Increases Home Value
According to a survey study of 500 real estate agents throughout the nation to learn the top 10 low-cost, do-it-yourself improvements that help increase the likelihood a home would sell.
Ranking in the top five are: clean & de-clutter, lighten & brighten, repair electrical & plumbing, landscaping, and home staging. But how much benefit can you really expect to get from each of these home improvement categories?
According to the study, the top home improvement continues to be to clean and de-clutter your home. It may cost you about $400 to make the most of this home improvement but sellers who make the financial commitment can benefit by seeing a "returning value of just over $2,000 to the home's sale price". That's a 403 percent return on investment (ROI).
Coming in at the number two spot is lightening and brightening your home. This makes perfect sense. If a home is dark and difficult to view, many buyers won't spend even minutes in it. Buyers want to be able to explore the home, seeing every detail. Also, homes that are dark often convey a dreary tone and may give buyers the suspicion that there may be hidden damages in the home.
Interestingly, home staging fell to the number five spot. In the 2011, study it ranked third. However, for this year, do-it-yourself tasks such as repairing electrical and plumbing issues, and maintaining landscape, ranked higher, respectively. In a buyer's market, sellers need to dress their homes for success before putting them on the market
It could be a sign of the times, that do-it-yourself home improvement projects are creating greater ROI. With many homes falling into foreclosure or being put on the market as a short sale, there is lots of inventory that is lacking a little tender loving care.
Sellers who are listing their home on the market should take a close look at the competition and then, as I've written in previous columns, see their home through the eyes of a potential buyer. In other words, check out its flaws and fix those issues.
Remember, buyers don't have a history with your home. They're not necessarily attached and willing to overlook the downside of your property.
Create a do-it-yourself task list and target those areas that need some work. Then bring in the experts to do the maintenance and repairs that need professional care. Investing a little more into increasing the potential sale of your home can mean not only more money but also a faster sale.
Lastly, shampoo or replace carpets, repair floors, paint interior walls, update kitchen & bathroom, and paint the exterior of the home.
VA Medical Benefits Available For Many Prior Service Members:
If you ever served in the military and were honorably discharged, you may qualify for VA medical. We have had many prior service members get approved even when they thought they couldn't. Simply go to the link below, fill out app. and send to your local VA hospital.
https://www.1010ez.med.va.gov/sec/vha/1010ez/
