Well, on my quest to be ever the more informed Realtor, I went to a seminar on VA Loans today.  What I have heard from other Realtors and Brokers these days is that VA Loans are "dead" now that there are so many other loan programs out there that offer the same benefits with less paperwork and sometimes fewer fees. 

Well, I can confidently say now that VA loans LIVE!  However; VA loans aren't the best thing for all VA Eligible Servicemembers.  I would suggest that anyone who wants to use their VA Eligibility to purchase a home go to a lender or Real Estate Professional who is familiar with BOTH VA and non-VA loans, and DEMAND that they present both options to you as a consumer.  In many cases, VA makes sense.  In many other cases, it does not.   Some things to look out for are Agents who immediately begin talking down the VA loans, or diverting you to more conventional.  It would be a good idea to stop the conversation at that point in time and ask the agent how familiar they are with VA loans, and then further ask how many VA loans they have handled in their career and what percentage of their total business that accounts for.  Most agents do very few VA loans.  If you find someone who has done even one or two in the past year, at least you have someone who is willing to work for you.

The truth of the matter is, VA loans require A LOT more paperwork on the part of the Lender/ Loan Agent.  Many just don't want to take the extra time and effort to do it.  Others are just not familiar enough with this special little niche to be able to effectively explain it.  (Personally, with San Diego having the largest military community in the US and possibly the world, I find it worthwhile to learn.  Well, that and the fact that I am a military spouse who wants to know my own options as well.)  Also, there is a "cap" on the amount the VA will lend, and that amount is rather laughable in the San Diego Market.  However, my buddies who put on this seminar let us in on a little secret- they have found a way to push the limit higher......

Ok, so what about the meat and potatoes that Servicemembers want to know?  Who does VA work for?  Who doesnt it work for?  Well, the gist of it is that if you are a highly qualified buyer- meaning you have excellent credit and at least 10% to put down on a home- chances are that you are going to get a better deal with a Conventional Loan Product.  HOWEVER, if you are like MOST San Diegans, and have found that the market rose much faster than you could save money for a downpayment, and have less than perfect credit, and even downright bad credit, VA may be your best bet.  In all cases, consult a Real Estate Professional for counseling on the subject and make sure to get a side-by-side comparison of the total cost of the offered loans.

 

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