First-Time Military Buyers Can Also Get $5000 For Alexandria VA Homes

Military homebuyers have the privilege of purchasing a home with a VA loan in Alexandria VA.  This provides the opportunity to purchase a home with no down payment.  VA home buyers can request that sellers pay their closing costs.  However, in cases where the seller is unable or unwilling to pay for the buyer’s closing costs, this can prevent closing from taking place putting the brakes on your Alexandria VA home purchase.

There is a $5,000 grant that is making it easier for first-time military homebuyers to purchase a home. As reported from Realtor.org, active duty personnel, veterans, retured members of the military, and employees of the U.S. Department of Homeland Security and the Department of Defence are eligible to apply for up to $5000 in down payment and closing costs in the purchase of a first home.  The national nonprofit Pentagon Federal Credit Union Foundation is offering the assistance through its Dream Makers program and says the grants can be applied to a mortgage from any financial institution and applicants do not have to be members of Pentagon Federal Credit Union to apply.

According to the Dream Makers program, you are a first-time home buyer if you have not owned a home in the last three years, or if you have lost your home through divorce or disaster.

See Also: Frequently Asked Questions About A VA Home Loan

See Also: $7500 Grant Program For First-Time Buyers

See Also: Video: Biggest Buyer Blunder – The Importance of Loan Approval

VA Compromise Sale Program Offers Cash To Distressed Military Homeowners 
$1500 Paid At Closing

Alexandria VA Short Sales – The Alexandria VA real estate market has made it tough for some military homeowners who are upside down on their mortgage to sell their home. The Department of Veteran Affairs has recently authorized a cash incentive of $1500 to homeowners who successfully complete a VA Compromise Sale. 

What is a VA Compromise Sale?  A VA Compromise sale is when the sale of your home is not enough to cover your VA mortgage balance.  As the borrower, you can request a claim from the VA to pay the short amount that will cover what is owed on the mortgage.  The mortgage lienholder is paid in full and the property is sold to the new purchaser with the lien fully released.

The $1500 incentive is shown on the HUD-1 settlement statement at closing, so the credit to the seller is not paid prior to the sale.  Much like the federal government’s HAFA short sale program where distressed homeowners can receive up to $3000, the VA Compromise Sale has guidelines:

• The property must be sold for fair market value.
• The closing costs must be reasonable and customary.
• The compromise sale must be less costly for the Government than foreclosure.
• There must be a financial hardship on the part of the seller.
• On loans that originated on or before December 31, 1989, the seller must be willing to sign a
  promissory note.
• There must be no second liens or other liens (unless the amount is insignificant). In
  situations whereby there are second liens or other liens, the seller can request that the
  lienholder consider releasing the lien and converting the loan to a personal loan.
• The seller must first obtain a sales contract in order to be considered for the program.
• To protect the seller’s interest, the seller should make the sales contract contingent and/or
  subject to the approval of a VA compromise sale.
• Once it is determined that a homeowner may qualify for VA compromise sale, the realtor or the
  homeowner should contact the homeowner’s lender and/or the VA.

Commonly asked questions from military homeowners considering a VA Compromise Sale:

1. How do I find out the market value of my home? Part of our service including providing a comparative market analysis, which is a report of the sales activity in your neighborhood.  This will show what homes have sold for, and how long they stayed on the market.  With a VA Compromise Sale, a VA appraisal is ordered by the mortgage lender.  The VA will likely not approve a sale that is less than the VA appraised value.
2. What if I do have a second lien?  Approval of a second lien will be on a case-by-case basis by the VA.  If there are large additional liens on the property, we will help you negotiate an arrangement with the lienholder so that the property can still be sold.  This may include negotiating a short payoff, or a promissory note.
3. What if I owe past due condo fees or HOA fees?  Contact the HOA or condo association immediately to find out the total amount due, and start making arrangements to bring your account current. The VA will likely not pay any money towards delinquent condo or HOA fees.  Associations have the authority to place a lien on your property and may also start the foreclosure process.
4. If I sell my home with a VA Compromise Sale, can I use my VA loan again?  Yes, but only after you have paid back your entitlement.

 If you are a military homeowner and have received your PCS orders to leave the Pentagon, Fort Belvoir, or Quantico, please call me at 703-623-8759 to see if you are eligible for the benefits that may help you if you need to sell your home.

The term ‘short sale’ has definitely gained popularity with the Alexandria VA real estate market over the past year.  While a short sale may not be suited for every homeowner, here are some basics to let you know how we help those who may be a candidate for a short sale.

The factors necessary in order to move forward with the short sale process:

• The homeowner may be behind on payments.  You don’t have to be behind on mortgage payments to qualify for a short sale.  Every bank, and every situation is different.
• There is little or no equity in the house, or homeowner owes considerably more than what the house is worth.
• The homeowner can prove a legitimate hardship.

Once the homeowner is aware of all options with the current mortgage company and if the owner chooses to proceed with a short sale, then we prepare the ‘Short Sale Package’ and submit it to the lender.

The short sale process for FHA loans if different than the process for VA and conventional loans.  With FHA loans, the homeowner must have written acceptance into the HUD short sale program prior to listing the home.  With conventional mortgages, the seller can proceed to market the home in the MLS and receive offers.  Based on the total amount owed on the home (which could include late payments, taxes, HOA/condo fees, mechanics liens), and a market analysis, we help determine the asking price for the home. 

The mortgage company may not explicitly offer a bottom line figure for what will be acceptable, so the market analysis proves to demonstrate what buyers are currently paying for similar homes.  This information is also included in the prepared short sale package to help strengthen the owner’s case for the approval.

The average time for a home to successfully close with a short sale is 60-90 days.  The benefits to the homeowner include the relief of no longer carrying a mortgage that is not affordable, and still being able to purchase a home.

As with a seller-owned resale home, the home is aggressively marketed both online and in print publications to secure a buyer.  As with all transactions, all financial information is kept in confidence, so you will never see our listings blatantly advertised as short sales.

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’