Housing: Up or Down? A VA Loan Perspective

For those sitting on the sidelines waiting for the home buyers’ market to arrive we have two words: good luck. The Twin Cities metro area remains favorable to home sellers as does the entire state. Forecasters see no change in the coming year.

According to data from area real estate associations home prices escalated about 14% in the Twin Cities area in the past year. Demand is simply outpacing supply. In St. Paul for instance realtors say they’re receiving up to 7 offers per property. Real estate investment firms remain bullish for the coming year. There is some good news for VA home loan borrowers, however.

At VALoansMN we have noticed VA mortgage rates are lower than conventional mortgage rates. In addition to this good news VA loans are available no matter the cost of the home. If you can afford the loan, the VA will back home loans in all areas of the upper Midwest regardless of the home price. Speaking of affordability, the good news for VALoansMN clients is mortgage rates remain extremely low.

In blogs past we have outlined many of your VA loan benefits but we think they are worth listing again:

1. No down payment required
2. No monthly mortgage insurance
3. Limited closing costs (which can be paid by the seller)
4. No penalty for paying off the loan early
5. Personal access to us at VALoansMN to answer any questions or concerns

If you’re sitting on the sidelines waiting for the market to turn in favor of buyers, you may have a long wait given the data coming from real estate analysts.

Do not make any real estate investment decisions based solely on information in this blog. Real Estate market forecasts in this blog are based on an educated guess and should not be considered financial advice. Always seek professional financial help when investing.