VA Loan Interview: Breaking Myths about the VA Loan Program
>>Veteran and Hawaii real estate agent Bernard Edwards talks with VA loan expert William Doom about what makes the VA loan so special and a benefit no Veteran should pass up.
The Military VA Loan is one of the best, if not the best, lending options available to military families. We have launched “The Military VA Loan Dot Com Show” with guest host Bernard A. Edwards to learn firsthand from real estate professionals that serve veterans, military members, and military spouses about what it’s like to use a VA loan to purchase a home in today’s market.
In this episode, Bernard sits down with mortgage lending professional William Doom to find out just why the VA Loan is such an amazing benefit for military veterans and families. If you want to learn more about obtaining a home with your VA loan, this is an interview that you don’t want to miss!
Breaking Down Myths about the VA Loan
Veterans and military members have no shortage of options when it comes to securing financing for a home. Along with conventional and FHA loans, veterans also have exclusive access to VA loans.
There are a lot of myths surrounding VA loans, ranging from questions about rates to how difficult it is to secure financing with the program. But many veterans have found success with the program and go on to use it multiple times to buy a home.
So, when picking a mortgage option, should veterans always use a VA loan?
“I’m in the camp of the Phil Knight world, so I would just do it,” says William Doom, Loan Consultant in Honolulu, HI. “There really are no negatives about purchasing using your VA.”
Doom works with home buyers that have access to VA loans as well as buyers that don’t. He’s seen the benefits of the VA loan program first hand and believes that veterans should always look to use their VA eligibility when they can.
Here are some of the benefits of a VA loan, according to Doom:
Before anything else, Doom says that the biggest benefit of VA loans is the 100% financing.
“That means you’re putting zero down,” he explains.
With home prices rising across the country, affordability has become an issue for many would-be home buyers. By avoiding a downpayment, veterans can become eligible to buy a home that a non-veteran in their situation would be unable to afford.
“A lot of times, depending on the lender that you’re working with, you’re going to have zero closing costs,” says Doom.
VA loans allow the home buyer to avoid some closing costs and include others in the financing. Some of the closing costs can even be assumed the by the home seller.
As Doom explains, the amount of closing costs veterans pay – if any – are dependent on the lender. When shopping for a VA loan, it’s a good idea to get multiple quotes from different lenders. Also, it’s worth it to find a lender that has VA loan experience. This keeps things going smoothly throughout the process.
The third big benefit of VA loans is the low interest rate.
“A lot of people don’t realize that the rate is far better than what you’ll normally see on conventional lending,” points out Doom.
VA loan rates are often the lowest available. Rates are always changing, and the rates available to each veteran will change depending on their personal situation. But when compared to other products like conventional and FHA, VA rates are often the lowest available.
Securing a loan
Most veterans are eligible for VA loans, as are some active duty military. Active duty military will likely have to go through more paperwork to prove their VA eligibility, says Doom, so it’s best that they bring their DD-214. Aside from that, experience VA lenders should be able to help with all the other paperwork.
“If you’ve been out of the service for a while and you’re like, ‘Oh, I’ve misplaced that. I’ve moved five times, I don’t know where I can get that.’ Most lenders will have the ability to help you,” says Doom.
Along with paperwork, veterans should be prepared to prove their income. This means bank statements and verification of employment. But if veteran buyers are not making a down payment or paying for closing costs, bank statements might not be necessary.
Bernard A. Edwards, the host of “The MilitaryVAloan.com Show” is the founder of Troops To Agents, which empowers veterans and spouses to become successful real estate professionals. He also is launching The Military Transition Camp, dedicated to helping military members design every aspect of their post-uniform life: mindset, health, purpose, career, money, fitness, emotion, relationships, and spiritual growth. Follow him on LinkedIn or Instagram for behind the scenes footage and insights from his interviews and travels. Service history: Technical Sergeant (E-6) Retired; 16 years of service; U.S. Air Force.
Full Video Transcript
Bernard Edwards: Hey everybody, welcome to the MilitaryVALoan.com show. I’m your host Bernard Edwards, CEO of Troopstoagents.com. And I’m here with my friend, Will Doom.
William Doom: What’s up?
Bernard: What’s up, brother? Good to see you. On this show we interview real estate professionals that service the veteran community, help veterans get into homes, secure homes, create investments for themselves, and we also interview veterans who have used VA loans in their lifetime. Some of them more than once. Without further ado, I’d just like to get started asking you our first questions. Some of our viewers have chimed in and they want to know, what’s the number one piece of advice you’d give a military family that’s looking to purchase their first home?
William: Number one piece of advice, I’d say, I’m in the camp of the Phil Knight world, so I would just do it. There’s really no negatives about purchasing using your VA. I think it’s an awesome tool the VA offers, and it’s something that every vet should take advantage of.
Bernard: What makes it, because you work with a lot of veterans, but you work with folks who are not veterans. What are some of the things about the VA loan that standout, that make you say, just do it?
William: Number one, 100% financing. That means you’re putting zero down. A lot of times, depending on the lender that you’re working with, you’re going to have zero closing costs, that’s number two. Number three, which a lot of people don’t realize, the rate is far better than what you’ll normally see on conventional lending. You’re getting an awesome rate. There’s this old myth that VA loans are bad, they’re hard to do, the rates are high. That’s all a fallacy. It’s not true. I believe, truly, that the VA loan is probably the best loan out there. If you have the ability to take out a VA loan, it’s something you should definitely do because you get that leverage of 100%. You’re putting zero down, if you’re working with a good lender they’re going to do hopefully zero closing costs, so you’re not paying anything out of pocket. And again, you’re going to get an interest rate that’s pretty awesome and pretty amazing.
Bernard: Love it. Love it. I’ve definitely used VA loan a few times in my deals where I can. It’s all been amazing experiences. And you’ve serviced a lot of my clients, which has been great. What’s some of the biggest surprises your veteran clients have when, let’s say they’re a first time homeowner, and I know one off the top of the head is probably paperwork, right?
William: Yeah. It depends. If you’re active duty versus civilian, the biggest thing is the DD-214. Making sure you’ve got that, and most lenders will have the ability to help you get that.
Bernard: This if they’re active duty, separated, retired, doesn’t matter. They’re going to have to produce a DD-214.
William: Correct. Just to show their eligibility. And again, if you’re working with a VA, a lender who knows the VA product, they’ll be able to help you get that. If you’ve been out of the service for a while and you’re like, “Oh, I’ve misplaced that. I’ve moved five times, I don’t know where I can get that.” Most lenders will have the ability to help you.
Bernard: Nice. Any other surprises that some of these veteran clients have had? That they didn’t realize was a necessity?
William: It really comes down to, VA loan at the end of the day, too, it’s just like any other loan where you’re going to have to provide income. Bank statements, verification of employment. Just be prepared that, “Hey, I’ve got to verify my current employer. I’ve got to have a pay stub that’s recent.” In most cases, you potentially have to have a bank statement if you’re putting money towards closing costs. A lot of times they’ll, again, if you’re not paying any closing costs, you might not have to verify your bank statements. Just be prepared. Bank statements, employment information, and pay stubs.
Bernard: All right. There you have it, guys. Go head over to MilitaryVALoan.com, where you can get much more of this great content. Will Doom, thank you so much for coming and providing value to the veteran community.
William: Definitely. Thank you for having me.