Buying

Financing Your First Home: VA vs HomeLLC

Purchasing a home is a major undertaking, and there are few people who are prepared to do so with a 20% down payment. Luckily, there are a variety of loans you can utilize to realize your dream of home ownership without putting down too much money upfront. 

The U.S. Department of Veteran’s Affairs (VA) offers favorable loans to veterans, service members, or eligible surviving spouses. These loans can provide much needed assistance to those who have honorably served our nation. See how the VA loan compares with our HomeLLC investment. 

Eligibility

• VA: Veteran or service member.

• HomeLLC: All U.S. citizens and permanent residents.

 

Minimum Down Payment

• VA: 0%

• HomeLLC: 2%

 

Loan Limit

• VA: Limited to Fannie Mae/Freddie Mac confirming loans, current limit for most areas is around $510,000.

• HomeLLC: Maximum home price of $2.5 million.

 

Chance of Buying a Home

• VA: Many sellers don’t like dealing with VA loans, as closing isn’t always guaranteed.

• HomeLLC: Sellers are likely to accept offers, since the closing process is seamless and guaranteed.

 

Funding/Underwriting Fees

• VA: Between 1.4% and 2.4% depending on down payment.

• HomeLLC: 0%

 

Upfront Mortgage Insurance Fees

• VA: None.

• HomeLLC: None.

 

Mortgage Payments

• VA: Since the down payment is frequently minimal here, mortgage payments stay higher due to a high loan to value ratio (can be 100%, with 0% minimum down payment).

• HomeLLC:  Since the down payment is generally 20% here (with HomeLLC’s investment), mortgage payments stay low due to a low LTV ratio (80%).

 

Additional Monthly Fees

• VA: None.

• HomeLLC: None.

 

Portion of Appreciation

• VA: You keep 100% of your home’s appreciation value.

• HomeLLC: You share your home’s appreciation value with HomeLLC.

 

Portion of Loss on Home

• VA: You stand to lose 100% of your home’s depreciation value.

• HomeLLC: You share any losses with HomeLLC.

 

The VA loan is a great option for those who serve or have served in the military. This loan does offer favorable terms with minimal fees. Unfortunately, many sellers prefer not to work with those using a VA loan, as the process is not seamless. Additionally, this loan is only available to those who meet the criteria.

Home.LLC offers an investment that allows you to put up just 2%, but still put in an offer with a down payment of 20%. You keep all the benefits of a loan such as the VA loan, while avoiding unnecessary fees, seamlessly closing the deal, and maintaining manageable mortgage payments. Learn more by visiting our website or reaching out to one of our team members today.

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