VA Purchase Loans
Posted: Wednesday, March 27th, 2013 by everythird
Interest Rates have been slowly creeping up. This increase in rates has caused a slowdown in VA streamline refinance requests. However, if we look at why rates have been increasing (less of a demand in bond purchasing) we realize that the root cause of rates increasing has been investors buying more equities because they are more optimistic about the economy. This optimism is now contributing to VA Purchase requests.
VA purchases are unlike other loans because they require zero percent down from the buyer. The only thing the borrower is responsible for is the closing costs, which most sellers are willing to negotiate and include in the sales price. This essentially allows Veterans to purchase homes with nothing out of their pocket.
As the real estate market is starting to heat up (some areas prices are up 20% year-over-year) it is wise for Veterans who are considering purchasing a home to do it sooner rather than later. Ultimately Veterans should purchase a home because it is the right time and they can afford the home, rather than a decision based on fear of the markets.
In some markets such as California, Las Vegas, and Phoenix, what once was a full recession in the housing market is turning into a boom like seen in 2004. Recently one borrower was approved to purchase a 2,000 square foot home in San Luis Obispo for $850,000. When asked why now, he responded, “because we are tired of renting and getting evicted because the landlord wants to sell to take care of these prices, therefore in order to create stability in our life we are going to purchase.” He also decided that with everything he has seen that now is the perfect time to buy before prices go up even more. Just like this borrower there are other borrowers, who are sitting on the sidelines wondering if now is the time to buy or will there be a market correction. It is the belief of VA Loan Desk that while we may see blips in the market, prices will continue to climb as the housing market rebounds in the United States.
In order to meet the demands of this new product www.valoandesk, a division of Flagship Financial Group has created a new division that specializes in purchase loans for borrowers. These loan officers have years of experience and are qualified to do these loans, which tend to be more intensive than a regular VA IRRRL or VA streamline loan. Borrowers are smart to get pre-qualified now so when the perfect home comes along they are ready to buy.
Why choose VA Loan Desk?
A division of Flagship Financial Group, LLC
Flagship Financial and VA Loan Desk finances more homes for veterans than any other VA lender in the United States.
Years of experience gives us unmatched expertise that ensures you get the most from your VA benefits.
VA Loan Desk’s vast network of lenders throughout the U.S guarantees you the lowest possible VA loan rate.