Smoothing the Path for Veterans
By Gina Dostler
Home buying in Southern California can be a challenge to veterans. Even though most are aware of Veterans Administration loans, many veterans don’t take advantage of its benefits. Julie Kistler of Kistler Group makes a point of educating and helping veterans find a home to buy as well as providing information on other benefits they have earned in serving their country.
Q: Do you think veterans are not as informed as they should be of the VA process?
A: Yes, I do. I think it’s in part how they exit the military and don’t get enough training about all the benefits available to them. There are so many vets who don’t utilize VA loans, as well as many other benefits available to them. In fact, all these programs are very under-utilized and need to be made aware to our veterans. I think it is our responsibility to educate this sect of future homeowners, so I’ve made it a priority to help our veterans get through the process.
Q: Why is it so important for veterans to find the right person to help process VA loans?
A: Veterans can get discouraged with the process if they are not working with someone experienced. Many agents are misinformed of the VA buyer and the lending processes because they don’t really understand the program. They may see the VA loan as a very complex matter and shy away from the whole thing. Sellers are skeptical because of the VA no-no. In their eyes it may be a red flag the buyers are not qualified or strong enough financially to purchase the home. This is simply not the case. In fact, they are a very strong buyer, just as if they were purchasing a conventional loan. It actually takes a team to help a veteran buy a home utilizing the VA loan. Working with the right lender, the right agent, and various other providers who help complete the process is vital
Q: What is a VA no-no?
A: That the veteran pays no down payment and no closing costs. The original G.I. bill created in 1944 gave this special loan to returning service members to help them assimilate to civilian life again and allow them a fresh start in the working world as a new homeowner. There are closing costs involved, but there are several avenues available so the buyer need not pay upfront. That is where an experienced VA real estate agent and lender can negotiate where both the seller and buyer benefit from the transaction.
Q: So no money down and you have a home. Sounds iffy.
A: There is nothing wrong with having no down payment (plus less fees for some closing costs – interest and impound accounts) for home buyers utilizing the VA loans if it makes the terms more affordable for them. But that doesn’t make them a higher risk. In fact, both FHA and VA delinquency rates are lower than conventional loans. VA loans are guaranteed by the Veteran’s Administration (25% of loan as if they were putting 25% down). They require fully documented income where a budget is actually created to make sure the buyer has enough residual income to purchase the home. Many people equate FHA/VA loans with the previously sub-prime loan era. This is misguided thinking since VA loans are handled quite differently and are much more solid. It’s a good product and the realtors who understand VA loans know that.
Q: You mentioned there are issues associated with VA loans. What do you mean?
A: One of the problems is the availability of homes for first-time VA buyers. Condominiums make a perfect starter home. Unfortunately less than 30 percent of condos are VA approved. It seems the board of directors that manage the condos (HOAs) has this belief the loans rate less than the other qualified borrowers. That is why education is so important for everyone around. The Orange County Association of Realtors (OCAR) has just put out an educational video that explains how they can help improve this situation. (Visit: FHA.ocar.org).
Q: Why do you have such a close focus on veterans?
A: I am very passionate in helping our veterans. As a former Navy vet, I understand what it is like coming home, working through the web of government benefits. And my brother and both my sons are in the military. So as a military relocation professional and certified realtor through the National Association of Realtors, I want to help all veterans navigate through VA benefits that can make their lives better. PTSD (Post Traumatic Stress Syndrome) is very relevant in returning veterans and we support several charities – Patriots and Paws, Fisher House Foundation and Wounded Warrior Project.
CONTACT INFORMATION
Julie Kistler
KistlerGroup
7412 Seabluff Dr., #102
Huntington Beach, California 92648
949-887-6636
