Thanks to the hard work of Realtors, Frank and Connie Spitzer of Park Life Real Estate, the entire bayside complex at Coronado Village has been approved for VA financing—now and in the future when each of the 23-unit townhomes is ready to sell. This is a one-time application and does not need to have constant renewal like the FHA approval. Frank and Connie applied directly to the VA, eliminating the cost of attorney fees for the HOA or seller.
Benefits/Changes to VA Loans
What this means is a buyer who has earned the benefit for a VA loan can purchase a residence with less money down. For example, Frank and Connie currently have a listing at 1445 1st Street in this complex for $1,150,000 (see this listing). The savings on the down payment using the VA loan would be approximately $83,000 less than with a conventional loan. Most people do not realize that a VA loan can exceed the current limit of $562,350 without a down payment. If the borrower qualifies, they can go above the $562,350 by putting 25% down above that amount for every dollar they borrow. The advantage is that the borrower will have less down out of their pocket, no private mortgage insurance, and a lower interest rate. Another benefit which is not widely known is that the VA benefit can transfer to the widow/widower if he/she is purchasing a property to reside in.
The VA has made several changes in the last couple of years in order to compete with the conventional financing. In addition, The VA no longer has stringent rules about what a seller has to pay. Currently, the only required cost for the seller to pay is the termite inspection which costs about $100. Even the termite work, if found, is a negotiated item. This can be paid by the buyer if necessary to secure a property in a competitive market such as Coronado at present.
Many agents and sellers are not educated on the recent changes in VA loans. Frank and Connie Spitzer have done this process for other listings that do not have the VA approval as well. This opens the door for the military and retired military to purchase a home that would not be possible otherwise. The Spitzers would like to thank Chicago Title and JD Richardson for their assistance in securing some of the documentation required for the application, Judy Eby of the HOA board for her assistance, and Josh Gullick of Bay Equity Home Loans for loan comparison information.
Coronado Village consists of 23 units located in the 1,400 block of 1st Street.