Assuming a VA loan can be a convenient and cost-effective way for veterans to finance a new home. By assuming a loan, the buyer can take over an existing mortgage when buying a home. Loan assumption can have numerous advantages for the buyer and seller, and is considered an often overlooked VA benefit. Here are some major reasons to consider assuming a VA loan rather than applying for a new one:
Applying for a mortgage, whether it's one from the VA or a conventional loan, can be a lengthy process. The various steps involved take months to complete, and there are numerous expenses attached. Down payments, appraisal fees and private mortgage insurance fees are all costs you can expect to come with applying for a new loan. When assuming a loan, you skip the multiple steps and expenses of the application process, saving you time, effort and money.
Depending on when the original VA loan was approved, you might be able to get a much lower interest rate than you would with a new loan. Even a percentage difference in interest rates can mean thousands of dollars saved over the life of your mortgage. The opportunity to assume a VA loan with a lower rate is an excellent benefit to consider.
Funding fees are mandatory when applying for VA loans. Most veteran borrowers pay an average of 2% of the home's purchase price for the funding fee, and a higher percentage if they've had a VA loan in the past. However, the funding fee for assuming an existing VA loan is much smaller--sometimes as low as 0.05%. The savings from a smaller funding fee is another great benefit of choosing a VA loan over a conventional mortgage.
I am a real estate broker, property manager, and investor, located in Ann Arbor, Michigan. To each client, I bring close to a decade of experience in real estate, first as a real estate investor, then manager, and now love to share my experience and knowledge with property buyers and sellers as a real estate broker. Since attending the University of Michigan in 2005, I have lived in Ann Arbor ever since. My exceptional knowledge of the market as an investor and property manager provides a unique perspective and competitive advantage to my clients for selling and buying both residential and investment properties.
I have successfully managed investment properties in Ypsilanti and Kalamazoo and have conducted real estate transactions throughout southeast Michigan. Whether clients are looking for their first home, vacation homes, or the home of their dreams, I will be able to stay on top of the process, remove obstacles and make the real estate deals as pleasurable as possible. I enjoy working with people and finding ways to share a laugh or two in the process. I take pride in being available to my clients and being responsive to their needs.
In addition to my residential property expertise, and my multicultural background, I am capable of working with international investors and home buyers to make their international property purchases smoother and trouble-free. If you are interested in the acquisition of investment homes for your children while they attend the University of Michigan, as a property manager, investor, and broker, I will be able to help you make that reality come true.
I graduated from the University of Michigan and own and operate several businesses in Ann Arbor and Ypsilanti. In addition to my real estate experience, I am also a technology enthusiast and am always on the hunt to use technology and media to enhance the buying and selling experience.
If you are looking to make your first home purchase, or are trying to sell your home, give me a call and I can guide you through the services that I can offer you to help you start along the journey. I take great pride in my work and it would be an honor for me to represent you and your needs.
Yours truly, Vincent Zhang