After being stationed at Naval Station Newport, many sailors, soldiers, and marines choose to make their home in Rhode Island. Proximity to the ocean, family-friendly communities, and easy access to Boston and New York are all appealing. That’s part of the reason the real estate market is currently booming. COVID-19 related pressures have led many New Yorkers to buy homes here – compared to last year, sales of Rhode Island homes to New York buyers is up 61%.
What does this mean for the VA Loan Home Buyer?
“The most important thing the military home buyer needs to do is understand you can’t give up before you start,” says James Duffer, a local real estate agent with special expertise in VA loans. “There’s a lot of misinformation out there, but the truth is people are buying homes in Rhode Island every single day with VA loans.”
Here’s what you need to know to help make it happen.
Understand that Zero Down doesn’t mean Zero Costs.
One of the great benefits of VA financing is the fact you don’t need to make a down payment. However, there are still costs you need to be aware of & have a plan to meet. All VA loans carry a funding fee, the amount of which varies by whether or not you’ve used a VA loan before. It is possible to reduce the amount of the funding fee by making a down payment on the home. Your other concern is closing costs. VA loans can not be used to cover closing costs, so you’ll need to having savings or some other source of financing for this portion of your home purchase.
Of Course There’s Paperwork Involved
To keep your home purchase process moving smoothly, make sure you have all the necessary documentation in order. You’re going to need your Statement of Service if you’re Active Duty; if you’re a Veteran, you’ll need your DD 214. You’ll also need a Certificate of Eligibility, which comes from the VA.
Be Clear About What You Want and Be Ready to Move Quickly
In high demand communities like Providence, Lincoln, Warwick and Cranston, homes are selling very, very rapidly after coming on the market. Speed is of the essence if you want to be the one to close the deal. The best way to achieve your objective is to partner with a Rhode Island real estate agent that has the agility to identify interesting properties and notify you quickly so you don’t miss out on any promising opportunities.
Have questions? Our dedicated team takes pride in helping military families find great homes. Give us a call today.