Blog Page

12Tips for the VA Loan for Active Duty Servicemembers and Veterans

We have had the honor to have helped many veterans get into their home with a VA Loan. Over the last 15 years we have learned some things that might help you or someone you know looking to use the VA Loan Entitlement. We want to share these with you.

VA Loans offer some of the most competitive rates available. Lenders tend to charge lower rates for VA loans as compared to conventional loans. Lower rates mean you end up paying less over the life of the loan.
100% financing may be obtained by using the VA loan. In other words, you don’t have a minimum required downpayment such as with FHA or conventional loans.
You don’t have Private Mortgage Insurance (PMI). This can save you thousands over the life of your loan; however, VA loans do have a funding fee but it may be waived for certain cases (more below).
The VA Loan is re-useable. You can use the VA loan multiple times, not just for one home. Once you have repaid your VA loan, you may be eligible to secure another for your primary residence.
The VA loan appraisal process is a bit more detailed than other appraisals. The house must pass specific guidelines set forth by the VA. This means in general no ‘fixer-upper’ type homes. This is to safeguard the veteran from possible safety and health issues.
Financing requirements are more forgiving with a VA loan. Note that the VA doesn’t set specific credit scores to be eligible for a VA loan, the financial institutions do. VA loans have more forgiving Debt-to Income (DTI) ratio requirements. This means you will qualify more easily as compared to other loan types.
If you have a service-connected disability you may qualify for a waiver of the funding fee. This also could save you thousands of dollars when purchasing your home with a VA loan.
In the State of Florida, disabled veterans get a property tax break of $5000 for a 10% disability to a complete tax exemption for those with a 100% disability.
Banks, credit unions and mortgage companies all have their own loan standards. One company may offer better terms than the other, so it pays to shop that loan.
Dependent on the market a VA loan home buyer may be able to request up to 4% seller concessions. Seller concessions are money asked for by the BUYER to the SELLER to assist in lowering out of pocket costs. This will help the servicemember or veteran with any additional up-front costs when buying a home. Note that this strategy doesn’t work in a ‘seller’s market’.
While loan officers can assist you with obtaining your Certificate of Eligibility (COE) from the VA, you are able to go to VA dot gov and start the process yourself. Having your own COE helps because it is your ‘golden ticket’ to start this VA loan process.
Finally, almost any REALTOR can help you with your VA home loan purchase but there are some that have gone the extra mile to earn the Military Relocation Professional (MRP) Certification provided by the National Association of REALTORs. The MRP REALTORS have knowledge and experience in dealing with the VA loan process.

Remember that the VA doesn’t give out loans. Banks and financing companies do. The guidelines are similar but not the same everywhere. Don’t go with the first company you find on the internet. These companies are good at marketing and may not provide you with the service you need. Be sure to use an MRP REALTOR and they will help guide throughout the VA home loan purchase process.

Brian Warner is a Navy veteran who has volunteered his time over the years in Central Florida with several organizations while serving veterans and servicemembers use the VA loan. He works with his wife Linda who also is an MRP certified REALTOR and together they own Florida International Real Estate LLC.

Exclusive Buyer Brokerage Agreement- Why do I need one?

Historic changes are happening in the real estate world. As part of the National Association of REALTORs settlement, Exclusive Buyer Brokerage Agreements (or EBBAs) are now being required by Multiple Listing Service (MLS) REALTOR participants. Why would you want to sign one of these and what are the implications to my home purchase in Florida?

In the past, Sellers have compensated both their Listing agents for marketing and sales as well as the Buyer’s agents (or Buyer Brokerage) for procuring a Buyer for the sale of their home. This was normal in most all cases. Qualified Buyers are generally brought to Sellers by their Realtor representing the Buyer, so it is important for the Seller to think about how important the Buyer agent’s role is in the sale of their house.

Over the years, Buyer agents have used EBBAs to solidify their relationships with prospective Buyers. This form hasn’t been a requirement in the past; however, as of August 17, 2024, it is now a requirement that the EBBA form be used prior to showing any Buyer any MLS listing. In the past, not all Buyer agents used this form because Buyers were wary of such a commitment. There are stiff penalties for any REALTOR showing homes to prospective buyers without having an executed agreement.

There are definite benefits to the homebuyer for using the EBBA. For starters you’ll get the agent’s knowledge and experience to assist you among the myriad of things to accomplish while buying real estate. The property you visit is being presented by a listing agent who represents the seller. Why not use that same REALTOR power on your side as a Buyer? Level the playing field so to speak by using the EBBA.

The Florida EBBA is three pages long and describes how much the Buyer agent will be paid, by whom they will be paid, and for what length of time is the agreement, among other things. It also states the obligations of both the Realtor and the Buyer: A Realtor representing a Buyer will:

work diligently to use their professional knowledge and skills
discuss property requirements and assist Buyer in locating and viewing suitable properties
assist Buyer in negotiating, removing contingencies, and closing any resulting transactions
and cooperate with real estate licensees working with the Seller to complete a transaction.

In return, the Buyer agrees to cooperate exclusively with their Broker/Realtor in accomplishing the objectives.

Buyer’s Broker’s compensation is earned and received when Buyer contracts and closes on the purchase of a home with the assistance of the Broker. The EBBA clearly states how much the buyer agent will be compensated at closing. If the seller doesn’t cover the entire cost of the compensation requested in the EBBA, it is possible for the buyer to pay the difference to the Buyer’s agent at closing. FHA, VA, and Conventional lenders are now allowing Buyer’s Broker compensation be added to their loan so as to eliminate additional out-of-pocket expenses for the Buyer. Either way, the Buyers will clearly know where they stand regarding Buyer’s Broker’s compensation owed if any prior to signing a purchase and sale agreement contract.

This article cannot cover all the angles of an EBBA but just provides an overview. Contact us for more information or for a sample copy of the EBBA in use today. We can help you strategize how to best work your offers when buying your next property. Experience matters! Contact us today so we can offer Buyer Agent services for you tomorrow!

Brian Warner is a Navy veteran REALTOR who has volunteered his time in leadership roles over the years in Central Florida with several organizations. He works with his wife Linda who is an Accredited Buyer Representative (ABR) REALTOR, Senior Real Estate Professional (SRES), Military Relocation Professional (MRP), and are both Gold Key Certified (GKC). Together they have over 34 years of Real Estate experience and own Florida International Real Estate LLC.

Broker commissions are not set by law and are fully negotiable.

Do I Need a REALTOR for a New Construction Home Purchase?

Often buyers are enticed by builders after spending so much time looking at resales. There are reasons to buy a new construction home, and we’ll share a little about that later in this blog. Using a REALTOR to help you with your new construction home purchase can be a great benefit.

In most cases builders have already considered buyer agent commissions (BAC) in their home price and these costs are built into the sales price. This means that more than likely, most if not all of the BAC is paid by the builder saving on your cash to close.

Builders employ licensed sales associates to help them put together builder favored contracts (which are quite complex) for new construction buyers. These contracts are very different to what you would expect when buying a resale. The builder’s salespeople represent the builder. Yes, you can walk right in and sign on the dotted line, but you would have lost your chance of being represented by a REALTOR. Your REALTOR will help you understand your options, act as a guide and provide insight into the market and the local area.

REALTORS are skilled negotiators and can assist you with securing a better deal, upgrades, options, incentives and insight you can’t find anywhere else.

The process of building a home is much different than buying a resale home. For example, with new construction homes you get to pick your own model, options and lot location. Moving into a brand new home with a bumper to bumper warranty is a great feeling.

Builders often provide incentives for new home buyers. One builder may provide a credit at close or offer better financing terms if you use their preferred lender as one example. Another example is a 55+ developer offering a free golf cart when buying in their community.

Also there is no way to describe the new house feeling when you close and move in. We have purchased three new construction homes in our personal life and really like them.

If you are ready to make a change in your lifestyle and select a new construction home, don’t forget that your REALTOR can work with you to get you into the home of your dreams!