Derek McGowan explains why VA loans deserve more respect than they typically get. He clears up misconceptions about how VA financing compares to FHA and conventional loans, and highlights specific benefits available to veterans through his mortgage services.
This is Derek McGowan with the McGowan Mortgage Team and I want to start this video off by thanking those who have served for our beautiful country. In doing our part to show appreciation, we waive our origination fees for our veterans and help shop over 200 banks, lenders and investors across the country to find the best rates for our veterans. Both of my grandpa's served so that's something that means a lot and is very important to me. This is also why it's important for me to set the record straight when I hear sellers not responding kindly because a buyer makes an offer with the VA pre approval. For many hours of conversations on the topic, I believe the reasoning is because they feel that the VA loan is more difficult to approve and or that the buyer is doing VA financing because they aren't qualified for conventional, which is mistakenly viewed as always being better. I believe the VA and FHA also mistakenly get intertwined in many cases for non veterans. If they have a lower credit score, need a higher debt to income ratio to qualify for more, the buyer may need to go FHA instead of conventional if they don't qualify. VA financing however, doesn't mean the person doesn't qualify for conventional and has a lower credit score. It just means they opted to make a wise financial decision for themselves and their family. The appraisal is another one that gets a lot of skepticism. Yes, VA and FHA appraisals do require the property to be move in ready, so as long as the seller doesn't have any major physical issues with the home, there wouldn't be a problem with the appraisal condition coming in. The VA just wants to know that their veteran isn't moving into a home that's in need of major repair, which makes perfect sense. The value of the home is viewed no differently whether it's va, FHA or conventional financing. There are many VA buyers who are perfectly qualified and can get conventional financing. But after comparing the options, they rightfully chose VA financing because the VA offers about a half percent lower rates than the same person getting conventional, there's no mortgage insurance and they allow for a higher debt to income ratio limit. And most importantly they earned the right by serving for our country and should be allowed to accept their hard earned option without criticism. So thank you again. Thank you for your service. To all of our veterans. I'm Derek McGowan and I'll always be here fighting for your rights.
