Rachel Portnov | April 19, 2023
In this blog post, we'll hear from Jennifer Burke, a lender with Empire Home Loans, about her success story helping a veteran obtain a VA loan in a high price point area.
Jennifer has been in the real estate industry for almost 19 years, with 10 years of experience as a lender. She found her passion in the lending side of transactions, particularly in VA loans. Jennifer notes that many people avoid VA loans, but in this post, she will share how a veteran was able to get a high price point VA loan through and why VA loans are a great option for veterans.
Jennifer's success story began when she was referred to a client who was having a bad experience trying to get a jumbo loan. They were looking to buy a property in Pasadena in the 2.5 to 2.8 million price range but were turned down by a few banks because of their perceived debt-to-income ratios. They were also required to come up with 25% for a down payment, which is a significant amount of money for such a high price point.
When the client talked to Jennifer, she gave them a safe space to share their experiences with different lenders. They talked about how they couldn't understand why they couldn't qualify for a loan, given that they made a good amount of money and were not trying to buy anything crazy. It was then that Jennifer asked if they were veterans, and they said yes.
Jennifer explained that there are misconceptions about VA loans, particularly the strict limits on what they can be used for. However, a few years ago, the loan limits were removed, and there is no longer a limit for VA loans. You can do 100% financing for properties worth nine, ten, or even twelve million dollars if you can find a lender that will allow it. There is a record of somebody doing a $9 million, 100% financing loan, so it is possible.
After sitting down with the client to discuss what it would look like, Jennifer was able to get them into a loan. They qualified for 100% financing but opted to do a 15% down payment to reduce the monthly mortgage payment. The purchase price was $2.4 million, and they were able to get the contract accepted and closed in just 17 days. The interest rates were lower than even a jumbo loan, saving the client over $1,000 a month.
Jennifer notes that VA loans are fantastic loans, and if she had her choice, every loan she would do would be a VA loan. Veterans deserve the opportunity to take advantage of the benefits that they earned by serving their country. VA loans offer many benefits, such as no down payment, no mortgage insurance, lower interest rates, and more.
In conclusion, VA loans are a great option for veterans, even in high price point areas. Jennifer's success story shows that with the right lender and a little education, veterans can obtain VA loans for properties worth millions of dollars.
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