VA loans rise as housing market shifts toward buyers

"VA loans are one of the most powerful benefits available to veterans and service members, opening doors to homeownership with zero down payment, no monthly mortgage insurance and flexible credit requirements. Now is a prime time for veterans and service members to take advantage of them. VA loans have a better chance of getting accepted in today's buyer's market than they did several years ago, when buyers were competing against each other and sellers were calling the shots."

"The market is slow, there's a backlog of inventory and buyers are in the driver's seat. Florida historically has had a lot of all-cash buyers, but recently, there are more financed buyers and many of them are able to win homes with ultra-low down payments while also having the seller cover most closing costs."

"During the pandemic's competitive housing market, VA buyers often lost out to those offering larger down payments. In late 2020 and early 2021 when mortgage rates hit record lows less than 6% of mortgaged buyers used VA loans. Even as VA loan usage rises, these mortgages remain limited to eligible service members and veterans. Sellers sometimes prefer conventional loans, which can bring higher offers or fewer contingencies, the report said."

VA loans enable eligible veterans and service members to obtain homeownership with zero down payment, no monthly mortgage insurance and flexible credit requirements. Current buyer-favored market conditions have increased VA loan acceptance and negotiating power for buyers. VA loan volume rose 3% year‑over‑year in August while conventional loans fell 9%. Buyers can submit VA offers with minimal down payment and request seller-paid closing credits. During the pandemic surge, VA buyers often lost to larger down payments and less than 6% of mortgaged buyers used VA loans in late 2020 and early 2021. VA loans remain limited to eligible service members and veterans, and some sellers still prefer conventional financing for higher offers or fewer contingencies. Move-in ready homes in desirable neighborhoods continue to sell relatively quickly.

Read at www.housingwire.com