How to stay competitive using a VA loan in a sizzling housing market

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In a hot housing market, military families with VA loans are struggling to buy homes. Here’s how to compete, according to real estate experts.

"The seller wants the most amount of money with the least amount of hassle," said Cedric Stewart, real estate agent at Keller Williams in Rockville, Maryland, explaining that sellers worry certain mortgages, such as VA loans, are more likely to fall through.

Indeed, 94% of real estate agents said sellers are most likely to accept an offer with conventional financing over a government-backed loan, according to an April 2021 survey from the National Association of Realtors. However, many of the concerns about VA loans are outdated, said Caitlin Turkovich, veteran and branch manager specializing in VA loans at Union Home Mortgage in Las Vegas.

Some 64% of home purchases with VA loans closed in August, according to mortgage software application company"VA loans are actually the easiest to qualify for if you have entitlements," said Turkovich, referring to the amount the VA will repay if the borrower defaults, based onWhile it's tough to compete with cash offers, working with a lender who specializes in VA loans may help "level the playing field" against conventional loan offers, said Turkovich, who outlines her...

Here's why: if someone expects dozens of offers on their home worth $350,000, they may choose a $365,000 list price. And once offers roll in, they may be comparing buyers' down payments.

 

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