If you're selling your Alexandria VA home and your listing agent is not welcoming FHA and VA buyers, then your home may be on the market a lot longer, and it could eventually sell for less money.
The VA Loan is made available to veterans and active duty service members for the purchase or refinance of a primary residence or the refinance of another property on which a VA loan already exists. Some additional basics include:
- Standard Maximum Loan is $417,000
- Standard Maximum Loan-To-Value is 100%, meaning that you can finance 100% of the purchase price, there is no down payment required
- Debt-to-Income Maximum is 41%
- Jumbo Maximum Loan is $1,000,000
- Jumbo Maximum Loan-To-Value is 85.425%
The FHA loan is made available to the general public and is available to any qualified individual for the purchase or refinance of another property on which an FHA loan already exists. The primary benefit of the FHA loan is a lower down payment requirement and less stringent underwriting standards as compared to most conventional loan programs. Some additional basics include:
- Standard Maximum Base Loan up to $362,790
- Temporary Jumbo Maximum Loan is $729,750
- Maximum Loan-To-Value is 97.75%
- Up front Mortgage Insurance Premium is 1.5% of base loan amount, which can be financed into the loan
- Annual Mortgage Insurance Premium is 50 basis points of base loan amount
- Debt-to-Income Maximum is 43%
But what does all of this mean to you if you're selling? It means that when the market was hot, it was common for buyers with conventional loans to beat out other buyers with VA and FHA loans due to the more strict financing rules. Listing agents should make it known and openly advertise: "FHA and VA buyers welcome!" That way you've made it clear as a seller that you're open to entertaining all offers, not just offers where the buyer is receiving conventional financing. Don't let buyers guess and assume. By opening yourself up to flexible financing, you open your doors to more buyers and increase the chances of getting your home sold quicker and for more money.
Buyers: Find out if you're eligible for the VA loan.
Sellers: FREE Book on 'How To Sell Your Home For Top Dollar Fast'