Unlocking the Benefits of VA Loans: Insights from Aaron Kloss at LoanDepot

Unlocking the Benefits of VA Loans: Insights from Aaron Kloss at LoanDepot

Welcome to the debut episode of "Just 2 Minutes," where I, Kamil Sarji, interview industry experts to bring you concise, actionable insights. In this first episode, I had the pleasure of chatting with Aaron Kloss from LoanDepot about a topic that's incredibly important for both veterans and real estate agents: VA loans.

Understanding VA Loans

VA loans are one of the best benefits available to veterans, yet only 25% of eligible veterans take advantage of them. These loans offer numerous advantages, such as no down payment, no private mortgage insurance (PMI), and competitive interest rates. Aaron Kloss shared that LoanDepot is placing a significant focus on expanding their VA department to better serve veterans and provide them with the support they need to navigate the home buying process.

Tidewater Initiative

One standout feature of VA loans discussed in the episode is the Tidewater Initiative. This lesser-known aspect allows real estate agents to provide additional comparable sales data if an appraiser believes a home may appraise for less than the purchase price. This opportunity to contest the initial appraisal before it becomes final can be a game-changer in ensuring that veterans can proceed with their home purchase.

No Cap on Loan Amounts

Another advantage of VA loans is that there is no cap on the loan amount, unlike conventional and FHA loans, which have limits and often require larger down payments for higher-priced homes. Aaron highlighted a remarkable case where LoanDepot helped a veteran purchase a nearly $2 million property using a VA renovation loan, demonstrating the program's flexibility and power.

Seller Concessions and Debt Payoff

VA loans also offer unique benefits when it comes to seller concessions. Sellers can cover all closing costs without limit, and an additional 4% can be used to pay down the veteran’s debt, helping them qualify for the loan. This feature is unmatched by other loan programs and can significantly ease the financial burden on veteran homebuyers.

Overruling Appraisals

One of the most surprising insights Aaron shared is that the VA can overrule certain appraisal conditions. For instance, if an appraiser flags an issue like a dilapidated deck that the seller refuses to fix and the buyer cannot address before purchase, the VA can allow the purchase to proceed regardless. This level of flexibility ensures veterans aren't penalized by stringent appraisal standards and can still secure their dream home.

VA Certified Loan Officers

LoanDepot is committed to enhancing its service for veterans by offering a VA certification program for its loan officers. This certification involves rigorous training and testing to ensure loan officers are thoroughly knowledgeable about VA loan benefits and intricacies. For real estate agents, working with a VA-certified loan officer can provide peace of mind knowing they are getting expert guidance tailored to veterans' unique needs.

Watch the Full Episode

These are just a few highlights from our engaging discussion. To delve deeper into the world of VA loans and learn more about how veterans can benefit, I encourage you to watch the full episode on YouTube: Just 2 Minutes - Episode 1 with Aaron Kloss from LoanDepot.

Conclusion

VA loans are an incredible resource for veterans, offering unmatched benefits that can make homeownership more accessible and affordable. Real estate agents should be well-versed in these programs to better serve veteran clients and navigate the unique aspects of VA loans effectively. With the insights shared by Aaron Kloss, both veterans and agents can unlock the full potential of VA loans and ensure a smoother, more successful home buying process.

Stay tuned for more episodes of "Just 2 Minutes," where we'll continue to bring you expert insights and valuable information to help you thrive in the real estate industry.

About the Author

Kamil Sarji is a property investment expert and the host of the "Just 2 Minutes" podcast, where he interviews industry professionals to share practical advice and insights. Visit Gold Door Realty for more information on buying and selling homes in Rhode Island, Massachusetts, and Connecticut.