Sacramento VA Housing Summit – Helping Active Duty Members and Veterans Buy Homes
Written by Robert Hipwell
A Huge Overlooked Market
Home sellers in Sacramento are missing out on a huge market because of their misconceptions of veterans and active duty members.
Sacramento has one of the largest military populations in the US – roughly 193 thousand active-duty members, retirees, and their families – yet most home sellers are overlooking them, missing out on this massive market.
Civilian home sellers aren’t marketing their homes to this large consumer audience because they believe incorrectly that it’s more difficult to get approved for a VA Loan. They also wrongly believe the VA appraisal process is more difficult than conventional home appraisal process.
However, the VA appraisal process – specifically the Minimum Property Requirements that sellers must meet – are much more lenient for VA mortgages than conventional mortgages. In addition, VA loans close in only 30 to 45 days, which is typically three days sooner than a standard FHA loan.
Service Members Missing Out
But it’s not just home sellers that are missing out. Veteran and active duty members right here in Sacramento are also missing out on government assisted financial programs that can help them buy a home for less than they’re paying in rent.
For example, the state of California offers several assistance programs that help veterans, active duty members and lower income families – but the public rarely hears about them.
The California Homebuyer’s Down payment Assistance Program (CHDAP) is a simple interest rate junior loan with a deferred payment. CHDAP loans are available up to, but cannot exceed 3% of the sales price or appraised value of the property, whichever is less.
The CHDAP can also be used for down payment assistance and/or closing costs with other eligible CalHFA’s first mortgage loans or non-CalHFA fixed rate, first mortgage loans.
In addition, the Veterans Administration can provide even more assistance through lower interest rates and smaller down payments for active and retired military but too often veterans and active duty members aren’t educated on these financial programs that they earned through their honorable service.
Sacramento VA home loans max out at $474,950 – more than most other counties in the US.
Veterans and active duty members will learn about the various local and national housing programs that can help them get into their own home. The summit is intended to educate all service members, both current and retired, on the ins-and-outs of each of the programs that they are entitled to. Service members will learn on-the-spot how much they qualify for; they will walk away with their Certificate of Eligibility, which is necessary for financing with a VA loan.
Robert Hipwell is a retired Brigadier General with 6 combat tours in the U.S. Army – he served for 42 years starting off as a Private. In addition to his military service record, he is a broker associate and the President of the VAREP Greater Sacramento Chapter. He is also Military and Veterans Housing Certified (MVHC). He has also earned 3 Master’s Degrees and 2 PhDs.