As a real estate agent, you will find yourself working with a variety of people with a multitude of special circumstances. Among those may be veterans of the U.S. military who are taking advantage of financing through the Veterans Administration. Others may be veterans who do not realize they are eligible for these amazing benefits the government offers because of their selfless service. 

Since you could be handling VA loans for your veteran clients, you may wish to know the important elements of this type of financing so you can assist any who may be interested in investigating this option for their home financing. Your clients will be grateful to you for explaining the advantages of pursuing such a loan. 

Highlight these benefits 

In some cases, a buyer with a background in the U.S. military may not qualify for other types of mortgage loans. Perhaps your client has too much debt compared to his or her income or falls short of some lenders’ minimum credit score requirements. This can be discouraging. However, if you point them in the direction of a VA loan, your client could experience these and other benefits: 

• Savings of thousands of dollars on private mortgage insurance 

• A waiver of funding fees if the veteran has a disability related to his or her military service 
• A credit score eligibility as low as 620, which most lenders consider “Fair” 
• A debt-to-income ratio requirement as high as 55% instead of the maximum 41% of most other lenders 
• Eligibility for a loan even with a bankruptcy or foreclosure in the recent past 
• Limitations on the closing costs a veteran may pay 

Perhaps the most attractive benefit of a VA loan is that borrowers do not need a down payment to purchase a home. Conventional mortgage loans could require your client to put down at least 5% of the loan, which can add up to thousands of dollars and can be exceedingly difficult for veterans to save. With a VA loan, however, that burden is lifted, making home ownership a reality for many veterans. 

If you expect that you might handle VA loans for real estate transactions involving veterans, you will want to learn even more about this method of financing and the other special circumstances many veterans bring to the homebuying process. With knowledge and experience in this niche area, you may find that working with veterans is one of the most important and enjoyable parts of your job as a real estate agent.