Maximize Your VA Loan: Eliminate Debt and Save $500 Monthly
Struggling with debt? Discover how a VA loan can help you reduce monthly payments and free up $500, making homeownership more affordable than ever.
👉 Let's discover how this works for you to structure your VA loan for maximum impact.
VA Loans Can Pay Off Debt While Buying a Home — Here’s How Veterans Can Save $500/Month
Are monthly debt payments holding you back from buying a home?
If you’re a veteran or active-duty service member, you may be searching for solutions to questions like:
If you’re a veteran or active-duty service member, you may be searching for solutions to questions like:
Can I use instant equity to payoff debt when buying a home?
Can a VA loan pay off debt at purchase?
Can a VA loan pay off debt at purchase?
Can I qualify for more by using a VA mortgage when I have debt?
The answer is: YES— VA loans can eliminate debts at closing while you buy your home- when you work with a knowledgeable Mortgage Broker and Realtor who understands has the programs and the strategy.
This powerful benefit could mean hundreds of dollars in monthly savings for you and your family.
What Most Veterans Don’t Know about VA loans
When you purchase a home using your VA mortgage benefits, the seller can contribute up to 4% of the purchase price in concessions.
These concessions can be used to:
These concessions can be used to:
Pay off auto loans, credit cards, collections, or judgments
Cover the VA funding fee (Waived if you have a VA disability rating)
Prepay property taxes and homeowners insurance
And that's in addition to the seller covering standard closing costs such as escrow, title, and lender fees.
Example: Paying Off Debt While Buying a Home
Let's look at a real-world scenario:
- Home Price: $400K
- Seller drops price to $385K
- Appraisal comes in at $400K
- Final purchase price agreed at $400K with $15K in seller concessions.
- Home Price: $400K
- Seller drops price to $385K
- Appraisal comes in at $400K
- Final purchase price agreed at $400K with $15K in seller concessions.
The seller's $15,000 concessions pays off:
- $7500 auto loan >> saves $500/month instantly
- The other $7500 goes toward closing costs and prepaid expenses
Impact:
- Your $500 monthly car payment disappears
- Your debt-to-income ratio improves which can increase your buying power by $80,000
- You move into your new home with stronger monthly cash flow and less financial stress
Why This Is a Game-Changer for Veterans
Most buyers feel like debt is standing between them and homeownership. But with VA loan benefits, debt can actually become part of the solution.
By using seller concessions strategically, you don’t just buy a home — you create financial freedom and breathing room at the same time.
VA Loan FAQ: Common Questions Veterans Ask
Can I use a VA loan for debt consolidation?
Yes, Seller concession can directly pay off debts at closing.
How much debt can I roll into my VA loan?
Up to 4% of the purchase price can go toward debts, fees,, or prepaid expenses.
Will paying off debt help me qualify for a bigger VA loan?
Absolutely. Lower monthly obligations improve your DTI ratio, often allowing you to qualify for a higher loan amount.
Ready to Use Your VA Benefits?
Up to 4% of the purchase price can go toward debts, fees,, or prepaid expenses.
Will paying off debt help me qualify for a bigger VA loan?
Absolutely. Lower monthly obligations improve your DTI ratio, often allowing you to qualify for a higher loan amount.
Ready to Use Your VA Benefits?
Don’t leave this powerful benefit on the table. If you’re a veteran or service member ready to:
- Buy your first home
- Move up to your next home
- Or simply learn how VA loan strategies can improve your financial picture....
Contact me today to schedule a free VA loan consultation.
Bill Black 360-910-3290 or bblack@nwfgi.com
Coming Soon: FHA vs VA Loans
Another huge question veterans ask is: "What's the difference between FHA and VA loans?"
Now available https://www.billcblack.com/blog/fha-vs-va-loans-what-veterans-and-homebuyers-need-to-know
That's the topic of my next blog post, where I'll break down the differences, benefits, and when each loan makes sense. I'll also link this article inside it so you can explore both strategies side-by side.
Stay tuned- this comparison could be the key in finding your path to homeownership.
Direct message me by entering your info in the box to the right.
Thank you for your Service!
Stay tuned- this comparison could be the key in finding your path to homeownership.
Direct message me by entering your info in the box to the right.
Thank you for your Service!