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February 2nd, 2008
Late Payment History
March 3rd, 2008
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April 15th, 2008
Debt to Income Ratio
May 20th, 2008
Selling a VA Home
What are the benefits of a VA loan vs. a conventional loan?
You can get 100% financing with no mortgage insurance. This alone can save hundreds of dollars a monthYou can get approved with flawed credit a lot of times. If rates improve after you close on your VA loan, you are always eligible for a streamline refinance. There is no similar option with a conventional loan.
Is the VA loan the best way for 100% financing?
It's fast becoming the only way for 100% financing as conventional loans have backed off considerably with high financing levels! The next best is the FHA loan program but that requires 3% down payment.
Are conventional mortgage rates better than VA rates?
Which rates are lower on any given day will vary. VA rates are comparable to conventional rates where the borrower has great credit and 20% down payment. The VA loan is the only way to get 100% financing these days.
If I have my certificate of eligibility, am I guaranteed to get a VA loan?
You are guaranteed for a VA mortgage once qualification is complete. The lender has to make sure you are able to support the mortgage payment for the home. The borrower must still qualify based on their income, assets, and their credit history.
What is the maximum VA loan amount?
The current maximum VA loan amount is $417,000. Even if you are eligible for a VA loan, you still have to qualify for the requested loan amount. This means that you may not be approved for the entire maximum loan amount even if you are VA eligible. If you want to purchase a home that is more than $417,000, then you would need to bring in additional money in the form of a down payment.
Do I have to pay my closing costs out of pocket?
It depends on how you structure the sales contract. You can have the seller pay as much as 6% of the borrower's closing costs for a VA loan. Many people take advantage of this so be sure to talk to your realtor about this seller concession.
Do I need a down payment?
One of the great benefits of using a VA loan is that you can do the loan with no money down. If the loan and sales contract are set up correctly with the seller covering the closing costs, then you can basically get a home loan for 100% of the sales price.
I've had a past bankruptcy; can I still get a VA Loan?
If you've had a Chapter 7 bankruptcy, you need to wait two years after it has been discharged to be able to qualify for the VA loan. If you've had late payments on anything credit related after your bankruptcy has been discharged, it's going to be an uphill battle for you.
If you've filed a Chapter 13 bankruptcy, you must wait one year after it has been discharged. Also, just like the Ch. 7, any late payments during or after the bankruptcy will make it almost impossible to get approved for a VA loan.
What is the VA funding fee?
The VA funding fee is what the VA charges to guarantee the loan. It is not a fee that has to be paid at closing out of pocket. This fee can be simply added to your base loan amount and is paid over the life of the loan. This fee basically takes the place of the mortgage insurance that you would normally find on a conventional loan. Even though the VA charges this fee, you will find that it is much, much cheaper over time than mortgage insurance.
I have a service related disability. Am I exempt from the VA funding fee?
Yes. As long as you are classified as 10% disabled or more you should be exempt from any of VA's funding fees. Be sure to tell your lender this, as it can save you thousands of dollars.
I was turned down for a conventional loan. Can I possibly qualify for a VA loan?
Yes, it is still possible to qualify for a VA loan. The VA is less sensitive to credit issues than conventional lenders. The primary thing the VA wants to see is a clean credit record for the past 12 months, as well as documentation that proves you can make a house payment based on your income in relation to the loan amount you are requesting. But if you cannot pay your credit cards on time very often most likely a VA underwriter will think you won't be able to pay the mortgage on time either.
Will I have mortgage insurance?
One of the great benefits of the VA loan is that it enables you to borrower up to 100% of the home's appraised value (up to $417,000) with out having to pay mortgage insurance. The VA charges a funding fee that is much less expensive than mortgage insurance and isn't part of your monthly mortgage payment.
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Official VA Streamline Refinance Information
Refinancing in declining market
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