VA and veterans: far more than just loans

By Erik Ferm Emerging

In the last decade as a loan officer, I’ve had the privilege of working with many active and former military members on their home financing. My father is a Vietnam War veteran and I’ve always felt a deep sense of respect and admiration toward our service men and women. I pride myself on making the home-buying process as easy as possible for everyone I work with, with particular care for those who served this nation.

My goal is to further educate our North Shore community of veterans, Realtors, and housing professionals about Veterans Affairs home loans. The VA loan was designed to offer long-term financing to eligible American veterans and their spouses. Before 1992, VA loans were only available to veterans who served on active duty during specific wars. The Veterans Home Loan Program Amendments expanded program eligibility to active duty military personnel who have served 90 consecutive days during wartime or 181 days of active service during peacetime, and National Guard and Reservists who honorably served for 6 years or more. Once veterans meet the length-of-service requirements, they will then earn a VA Certificate of Eligibility (COE), qualifying them for the well-earned benefits of VA financing.

At Guaranteed Rate, we are committed to being a trusted partner to the Armed forces. We waive our lender fee and provide a dedicated team of VA loan specialists to simplify and streamline the approval process. We care about our veterans and feel that after giving so much, they shouldn’t have a stressful home buying process. I take the time to review my clients’ VA entitlement and explain whether they qualify for a reduced or waived VA funding fee. The VA funding fee is typically 2.3 percent of the loan amount and 3.3 percent if you have previously used the VA program. This is typically financed into the loan but can be waived for veterans who have been disabled in any way.

The most important benefits of VA financing are lower mortgage rates compared to conventional loans, zero percent down payment, and no monthly mortgage insurance. This paves the way for our veterans to realize their dream of homeownership. In today’s higher interest rate environment, it’s important for buyers to utilize the best loan program available to them to get the lowest monthly payment. If you’re a realtor or seller, I encourage you to consider accepting competitive VA offers. Many real estate experts believe these loans are way more complex than they really are. VA appraisals are completed just as quickly as conventional appraisals and generally meet guidelines as long as the house doesn’t have major safety issues. These loans also afford veterans more relaxed credit requirements, making the approval process much more likely.

If you’re looking to purchase a home, your key to success is getting pre-approved early on. Gather your W2s, tax returns, paystubs, and bank statements. Speak with a trusted loan officer. It’s so important to have a clear line of communication with your real estate team and make sure they are available to you on weekends. I offer my clients the ability to lock in interest rates before finding a home, along with a full upfront underwrite through our PowerBid Approval. This gives you protection against rising rates and the confidence to make a competitive, standout offer.

If you need guidance or have any questions, you are welcome to reach out to me. I