Celebrating 100 Episodes
The Mortgage Heroes Weekly Podcast recently celebrated their 100th episode, marking a significant milestone in their journey of providing valuable insights into the mortgage and real estate industry. Hosted by Andy, Brian, and Will, this podcast has become a trusted resource for homebuyers, especially veterans seeking information about VA loans and mortgage options.
Celebrating 100 Episodes of Mortgage Knowledge
The hosts began their 100th episode by reflecting on their journey, sharing screenshots of their very first episodes and how their set and appearance evolved over time. From different table arrangements to Brian's ever-changing hair colors (silver, green, and even purple!), the team has come a long way while maintaining their commitment to delivering quality content about mortgages and real estate.
The trio expressed gratitude toward each other, with special acknowledgment to Andy for keeping the team focused and committed. Will and Brian highlighted how the podcast has helped them stay informed about market trends and enabled them to better serve their clients, particularly military veterans utilizing VA loans.
VA Loan Success Story: House Hacking with Military Benefits
One of the key topics discussed in this milestone episode was a compelling success story about a Navy couple who leveraged their VA loan benefits to purchase their first home in San Diego using the house hacking method.
Maximizing VA Loan Benefits Through House Hacking
The story featured a military member and his wife who:
Used their VA loan to purchase a triplex property
Lived in one unit while renting out the other two
Used rental income to cover approximately half of their mortgage payment
Transformed their property into a full cash-flowing investment within two years
Eventually transitioned into full-time real estate investing
This case study demonstrates the unique advantages of VA loans, which include:
Zero down payment required, even for properties over $1 million
Ability to count Basic Allowance for Housing (BAH) toward qualifying income
Option to include rental income from additional units when qualifying for the loan
No private mortgage insurance requirements
Why San Diego Veterans Have a House Hacking Advantage
The hosts emphasized that San Diego offers specific advantages for military members looking to use their VA loan benefits:
Higher Basic Allowance for Housing (BAH) compared to most U.S. locations
Strong rental market that supports house hacking strategies
Potential for significant appreciation in property values
As Will pointed out: "It's leverage at its best. Any investor would love to have that. What do you mean I can go into a property, look at this as an investment, and then if I PCS (receive permanent change of station orders), I can rent it out?"
Current Market Trends Affecting VA Loan Borrowers
The podcast hosts also discussed current market conditions that impact veterans and all homebuyers:
Extended Days on Market: What Veterans Need to Know
According to Redfin reports shared on the podcast, the typical U.S. home is now taking nearly two months (54 days) to sell—the slowest pace in five years. This represents a significant shift from January 2022, when homes were selling in just 35 days.
For VA loan users, this changing market presents both challenges and opportunities:
More time to make decisions when house hunting
Increased inventory providing more options
Better position for negotiations on price and terms
Potential for seller concessions like interest rate buydowns
Affordability Challenges for Military Buyers
Despite the slower market, affordability remains a major hurdle:
High interest rates (around 7%) creating payment challenges
San Diego's pending sales down 20.1%, more than twice the national average
Record low affordability for the past 30 years
The hosts shared an example of a recent buyer who qualified for a $1.25 million FHA loan with 3.5% down, resulting in a monthly payment of $8,300. This underscores the importance of careful financial planning, especially for veterans transitioning from active duty who will no longer receive BAH.
Negotiation Strategies for VA Loan Users in Today's Market
With homes taking longer to sell, the podcast team offered valuable negotiation advice for veterans using their VA loan benefits:
Effective Negotiation Tactics for Veterans
Ask for interest rate buydowns: Sellers can prepay to reduce your interest rate by 1-2% for the first 1-2 years
Request closing cost assistance: Sellers can contribute up to 4% toward closing costs with VA loans
Negotiate HOA prepayments for condos or planned developments
Consider requesting furniture inclusion if applicable to your situation
Understanding Seller Motivations
The hosts emphasized the importance of gathering information before negotiating:
Research when the seller purchased the property and for how much
Determine if they're relocating or have time pressure to sell
Understand how long the property has been on the market
Work with real estate professionals who understand VA loans and can effectively communicate their benefits to sellers
Will noted, "Right now we're starting to see a lot more 2-1 buydowns coming back again. What that actually means is if the interest rate is currently at 7%, you can buy the rate all the way down to 5%."
The Mortgage Heroes' Advice for Veterans in 2023
The podcast hosts offered clear guidance for military members and veterans looking to purchase homes in the current market:
Don't wait if you qualify now: "For people that qualify now, don't wait—just purchase."
Understand that higher rates are temporary: "The interest rate is going to go down, therefore that's going to save you money in the long run because you'll be able to refinance."
Prepare for sacrifices: "Everything comes with sacrifice... but we made the sacrifice and now I look like a hero. My property's being rented and it's got a ton of equity."
Work with professionals who understand VA loans: The complexities of military benefits and VA financing require specialized knowledge.
Looking Forward: The Future of VA Home Loans
As the Mortgage Heroes podcast team looks toward their next 100 episodes, they remain committed to educating veterans about the powerful benefits of VA loans. The hosts emphasized that despite market challenges:
VA loans still offer the most favorable terms for eligible veterans
San Diego's housing shortage (part of a national 5-6 million home deficit) means property values are likely to remain stable or increase
Veterans who purchase now will be positioned for future refinancing when rates decrease
Conclusion: Celebrating Success and Looking Forward
The 100th episode of the Mortgage Heroes Weekly Podcast not only celebrated a significant milestone but also reinforced the team's commitment to serving homebuyers, particularly veterans utilizing their earned VA loan benefits.
Through their candid discussions of real-world examples, market trends, and negotiation strategies, the podcast continues to provide valuable insights that help military members make informed decisions about one of life's most significant purchases.
For veterans considering a home purchase, the message is clear: understanding and properly utilizing VA loan benefits can create powerful opportunities for homeownership and wealth building, even in challenging market conditions.
Visit the Mortgage Heroes Weekly Podcast on YouTube for more expert advice on VA loans, real estate, and mortgage strategies for military members and veterans.
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