Lilly Garcia Realtors
8308 Precinct Line Rd
Colleyville, TX 76034
ph: 8552000723
lilliann
Veterans, active duty service members and others who qualify have what’s called an Entitlement, which is basically a promise from the Department of Veterans Affairs to provide a financial guarantee on a mortgage issued by one of its approved lenders. The VA doesn’t issue home loans, instead it guarantees a portion of each; and that guarantee is important to lenders and helps borrowers who might otherwise struggle to secure financing. Having a VA Entitlement means you have a financial guarantee from the Department of Veterans Affairs.
Eligibility
There are basic eligibility requirements for veterans and active duty service members, along with the members of the Reserves, the National Guard, and surviving spouses. You may be eligible for a VA Loan if any one of the following are true: You served 181 days during peacetime (active duty), you served 90 days during war time (of active duty), you served 6 years in the Reserves or National Guard, or you are the spouse of a service member who was killed in the line of duty. To be able to obtain a VA loan you will need to obtain a Certificate of Eligibility. Veterans can obtain the Certificate of Eligibility directly from the VA, which can be done online. Prospective borrowers also have to satisfy credit and underwriting standards set by both the VA and the lender.
Can I get a VA Mortgage after bankruptcy?
Criteria for VA loan approvals state that if you have been discharged from a Chapter 7 bankruptcy for two years or more, you are eligible to apply for a VA mortgage. If you are in a Chapter 13 bankruptcy and have made all court approved payments on time and as agreed for at least one year, you are also eligible to make a VA loan application.
What property types are allowed for VA Mortgages?
While VA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and 1-4 family residences, in which the borrower intends to occupy one part of the multi-unit residence.
VA require no down payment up to $417,000, which is the conforming loan limit ($625,500 for Hawaii, Alaska, Guam and U.S. Virgin Islands). This means that qualified veterans could get a no down payment purchase loan for those amounts.
Maximum financing: The maximum VA Mortgage amount will be 100% of either the appraised value of the home or its selling price, whichever is lower.
Maximum Loan Amount: The maximum loan amount allowed for a VA Mortgage varies from county to county. The highest maximum VA Mortgage right now is $1,094,625. The lowest maximum VA Mortgage amount available in any county is $417,000. To see what the limit is in the county in which you're interested, visit the following page http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf. This site lists U.S. territories as well as states.
VA uses two methods for income qualification purposes. The primary method of evaluating a veteran's income is the residual income method. Under this method, the underwriter determines that a veteran has sufficient income to cover day-to-day living expenses after paying housing expenses, taxes, and other debts such as car payments and credit card payments. VA also uses a debt-to-income ratio method like many programs. However, VA uses only one ratio (41%) which is the ratio of total debt (both housing and other debt) to income. Your credit background will be fairly considered. At least a 620 FICO credit score is very helpful to obtain an VA approval.
See more on VA Mortgage Requirements. There is no private mortgage insurance, but VA does charge an up front VA funding fee, which may be financed. The exception to this is that if a veteran is in receipt of VA service connect disability payments each month, he or she does not have to pay a VA funding fee. VA Mortgages Have No Mortgage Insurance
Additionally, to meet current VA Home Loan qualifications your military service must meet the following requirements:
Military Service Requirements for VA Home Loan Eligibility:
Note: Applications involving other than honorable discharges will usually require further development by VA. This is necessary to determine if the service was under other than dishonorable conditions.
Wartime - Service During:
You must have at least 90 days on active duty and been discharged under other than dishonorable conditions. If you served less than 90 days, you may be eligible if discharged for a service connected disability.
Peacetime - Service During:
You must have served at least 181 days of continuous active duty and been discharged under other than dishonorable conditions. If you served less than 181 days, you may be eligible if discharged for a service connected disability.
Service after 9/7/1980 (enlisted) or 10/16/1981 (officer):
If you were separated from service which began after these dates, you must have:
Gulf War - Service during period 8/2/1990 to date yet to be determined
If you served on active duty during the Gulf War, you must have:
Active Duty Service Personnel
If you are now on regular duty (not active duty for training), you are eligible after having served 181 days (90 days during the Gulf War) unless discharged or separated from a previous qualifying period of active duty service.
Selected Reserves or National Guard
If you are not otherwise eligible and you have completed a total of 6 years in the Selected Reserves or National Guard (member of an active unit, attended required weekend drills and 2-week active duty for training) and
Individuals who completed less than 6 years may be eligible if discharged for a service-connected disability.
You May also be determined eligible if you:
Note: Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must apply no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 6, 2003 that are received after December 15, 2004.
Eligibility may also be established for:
Benefits
VA Mortgages Require No Down Payment
VA mortgages have no down payment requirement. Other loan programs don't allow this. (MI). Depending on the program, the daily VA mortgage rates are usually better than a conforming 30-Year Fixed loan. A distinct advantage of a VA mortgage, as compared to a conforming loan, is great interest rates, no down dayment and no mortgage insurance.
VA morgages are not totally credit score driven. It is helpful to have at least a 620 FICO score to obtain an approval. VA mortgage guidelines are written in a way that provides the veteran the benefit of the doubt that there had been, at some point in their past, circumstances beyond their control, and as long as the borrower has recovered from those circumstances in a reasonable manner, they're generally going to be credit-eligible for an VA mortgage. The veteran does have to qualify income and credit wise,
What are the benefits of a VA Home Loan? There are many benefits of a VA Home loan including:
VA Loans are Credit Flexible
The veteran does have to qualify income and credit wise, nevertheless, VA loan needs are not totally credit score driven. It's useful to have at the least a 620 FICO score to get an approval.
VA Loans have Great Interest Rates
A distinct advantage of a VA mortgage is great interest rates, no down dayment and no mortgage insurance (MI).
VA Loans don't require a down payment
No down payment requirement. Other loan programs don't allow this for veterans.
VA Loans Have No Mortgage Insurance
There is no private mortgage insurance, but VA does charge an up front VA funding fee, which may be financed. The exception to this is that if a veteran is in receipt of VA service connect disability payments each month, he or she does not have to pay a VA funding fee.
What are the requirements for a VA Home Loan?
To decide if you qualify for a VA Home Loan Loan, we will look at:
VA uses two methods for income qualification purposes. The primary method of evaluating a veteran's income is the residual income method. Under this method, the underwriter determines that a veteran has sufficient income to cover day-to-day living expenses after paying housing expenses, taxes, and other debts such as car payments and credit card payments. VA also uses a debt-to-income ratio method like many programs. However, VA uses only one ratio (41%) which is the ratio of total debt (both housing and other debt) to income.
What is the maximum amount that I can borrow?
The maximum loan amount for a VA Loan qualification is determined by:
Maximum VA Home Loan amount: By law, VA Lenders cannot insure loans that exceed certain amounts based on the metropolitan area or county in which you live. The highest maximum VA mortgage right now is $1,094,625. The lowest VA lender maximum amount available in any county is $417,000. To see what the limit is in the county in which you're interested, visit the following site http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf. This site lists U.S. territories as well as states.
Maximum financing: The maximum VA Home Loan amount will be 100% of either the appraised value of the home or its selling price, whichever is lower. If you are refinancing and taking cash out, the loan will be limited to either 90% of the current appraised value.
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Lilly Garcia Realtors
8308 Precinct Line Rd
Colleyville, TX 76034
ph: 8552000723
lilliann