Mortgage Updates

September 14th, 2009 10:16 PM
Are you a Veteran?  If so, 100% financing is still available to you for your home purchase financing through a single low rate 30 year fixed mortgage.  When many home buyers (especially first timers) are squeezed out of the market for lack of a down payment, Veterans can purchase with little to no cash investment based on Seller contributions for closing costs.  This is just where the benefits start.  Let's look a little closer.
 
It's OK to own another home, you don't have to be a first time buyer.  If you have never used your VA loan benefits before, then the Funding Fee (VA's term for mortgage insurance) is lower than that for a "repeat" user with ZERO down.  If you do have funds for a down payment - 5% then the Funding Fee is reduced.  Veterans' with a service related disability are exempt from paying any Funding Fee for their loan.  Also, Exempt from the Funding Fee requirement are unmarried surviving spouses.  (The FF is a one time charge added to your loan amount; there are no monthly  MI payments - as with typical mortgage insurance. (For more information about VA loans click here) 
Veterans from all branches of the armed forces as well as Reserves and National Guard may qualify.  One "watch it" to remember for two un-married individuals -both need to be Veterans on active duty or with honorable discharge.  One Veteran and one "civilian or non veteran"  cannot buy together using a VA loan.
 
VA loans also have limitations on closing fees that Veterans are allowed to pay.  This can cause a problem in purchase transactions where agents are uninformed and sellers are unaware that a heavier burden of the closing costs will be borne by them due to this VA requirement.  For items that a Veteran cannot pay include click here: 
 
The maximum potential loan amount for a purchase transaction loan 100/100% loan-to-value/combined -loan-to-value with full entitlement is at $1,094,625.  Loan amounts up to 1,500,000 are allowed as long as the VA guaranty plus the veteran's down payment and /or equity equal 25% of the lesser of the sales price or the VA notice of value.  All higher loan limits are driven by the VA County loan limit.  Be sure to check with your lender for local limits.  For CA Count loan limits click here.
 
Lastly, when applying for a VA loan with a loan amount over 417,000 there are three important key factors;
  1. Credit scores have to be 720 or better,
  2. also you will need to have a minimum of 6 moths principle, interest, tax and insurnace payments as reserves in the bank;
  3. gift funds are not allowed.
Posted by INGRID PIERSON on September 14th, 2009 10:16 PMPost a Comment (0)
Recent Posts:
Archive:
My Favorite Blogs:
Sites That Link to This Blog:



VITEK Mortgage Group is licensed by the Department of Corporations under the California Residential Mortgage Lending Act.  

Ingrid Pierson: Licensed - NMLS # 233666

VITEK's Privacy Policy.

 


VITEK MORTGAGE GROUP-NMLS233666
Phone: Fax:

Contact Us | Placer County | First Time Buyers No Down Payment | Outreach | Children & Caregivers Information | Referrals & Recomendations | Sac County Assessors Information | Home Value Estimators | Home Affordable Program | one half % down payment | Tell a Friend | Real Estate Glossary | Loan App Checklist | Site Map | Loan Application | Getting Qualified | Rent vs Buy Calc | Refi Breakeven Calc | Mortgage Calculators | Customer Login | Our Service Area | 9 Steps to Ownership | Disputing Credit Reports | Ingrid's Blog | Sacramento Experts

Copyright © 2012 VITEK MORTGAGE GROUP-NMLS233666
Portions Copyright © 2012 a la mode, inc.
Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site Map