VA Mortgage Requirements-Do You Qualify?

admin — Sun, 30 Oct 2011 01:02:30 +0000

VA Mortgage Requirements

Many people have asked me about VA Mortgage loans and how do I get one. I found an article that will explain the requirements on getting a VA Mortgage and who qualifies for one. If after you read this article and find that you meet the requirements than I would say take advantage of it. The main benefit is NO DOWN PAYMENT REQUIRED and that will save a lot of money that you can use for things like landscape, furniture and upgrades if you chose to. So go ahead and read the article below and call or email me if you have any questions.

By: Jeffrey Ragan

If you are considering a VA mortgage home loan, then you may want to understand the VA mortgage requirements to see if this type of mortgage will fit your needs. Well I will tell you, this is one of the most awesome loan products out there. Why do I say that? Because it allows for a no down payment loan. Consider the savings!!!

Before you even contemplate a VA mortgage, one of the requirements you have to meet is being or have been in the military. If you have not served in the military, no need to read further. Take a look at other loan programs to see which will suite your needs better. But if you have been in the military read on for the VA loan requirements.

VA Mortgage Requirements:

Obtain a Certificate of Eligibility
Loan must be for a purpose approved by the VA
Veteran must occupy or intend to occupy the home within a reasonable time after closing
Veteran must have good credit
Veteran must have income enough to make the mortgage payments and other necessary costs to maintain the home

Here is a break down of each of these requirements:

Certificate of Eligibility

This is a documents that provides proof of your military service and eligibility for a VA home loan. If you do not have a certificate, you can acquire one by making application on VA Form 26-1880, Request for Determination of Eligibility and Available Loan Guaranty Entitlement, from your local VA office. You would also include copies of your most recent discharge or separation papers covering active military duty.

VA Mortgage Home Loan Purposes

The VA Mortgage is designed to help veterans toward home ownership. Below is a list of some of the approved purchases:

To buy a home.
To build your own home.
To purchase and improve a home at the same time.
To refinance an existing home loan.
To buy a manufactured home.

Occupancy Requirements

The veteran must reside in the property as their primary residence. What if the veteran is on active duty? The spouse residing there satisfies this occupancy requirement.

Credit Requirements

You will need one year of good credit history and at least a credit score of 620. So if your credit is not too good, work on your credit first so you will not have any problems qualifying for a VA home loan.

Income Requirements

Just like any other loan product, you will need sufficient income to cover daily living expenses plus your possible housing expenses for buying that sought after home. They will look at any debts you have such as car payments and credit card debts. So its a good idea to have your debts paid down when you apply. Another method they use is the debt to income ratio. When using this method the VA home loans use a ratio of the total debts including the new house payment. They usually like to see your total debts being no more than 41% of your total income this includes the estimated house payment. So take a look at what you owe. Do you have room to make a house payment?

See, the requirements are not complicated. There are a couple big incentives with this type of loan product. Down payment is not a requirement so you can get 100% financing. They also do not require private mortgage insurance (PMI). Those two things allows you, the veteran, to have big savings in buying your home. Just make sure your credit and income satisfy the VA loan requirements.

Author Resource:-> Jeffrey Ragan has several years of experience helping people reach their goals and wants to help you learn more about the VA Home Loan and other helpful information on their website, First-Time-Home-Buyer-Solutions.com.

NorthWest Real Estate

Mortgage Overhaul and What it Means for You

admin — Wed, 21 Jul 2010 18:04:23 +0000

Mortgage Overhaul and What it Means for You

Mortgage Overhaul & What it Means for You

By the time you are reading this, the new 2300 page financial reform bill is likely to be making the headlines. The Senate has already approved the new bill and President Obama is expected to sign it into law this week ..despite the fact that many of the provision related to specific regulations have yet to even be written. If that sounds faintly disturbing, don’t worry…your concern is noted and shared by many experts through the nation. However, there are sweeping changes that are already apparent despite the lack of specific details.
Although broad in scope, home buyers and sellers are likely to be among the first impacted by the new provisions. They represent one of the most comprehensive – top to bottom changes to the finance, valuation, types of mortgage products offered and how lenders are compensated to take place in decades. In fact, there are even new rules for investors that provide capital for the purchase of mortgages.

A few of the most important points likely to make immense impact to buyers, sellers and investors is the language dealing with any type of mortgage outside of the “traditional” or “plain vanilla” category. Unfortunately, regulators have yet to fully define what will constitute a “traditional” mortgage under the new plan but it is clear that the line will be drawn to reduce the number of sub-prime borrowers as well as offerings of owner finance and other alternative forms of finance. Experts predict an immediate severe impact on many minority and low income borrowers; many who have already been impacted by far less severe measures. For example, according to FHA, rejection rates for African American and Latino borrowers have substantially increased among non-FHA loans.

The new FDIC and other regulatory oversight standards contained in the bill are expected to provide safer mortgage(s) instruments but at a higher cost and more stringent requirements for both banks and individuals. It is estimated that only five banks currently control more than 65% of the current mortgage market; the new bill is expected to further consolidate this trend by favoring big banks over small. In part, this is due to the belief that big banks are easier to regulate. However, at the same time, new controls and rules regulating private investors are also expected to take another two to three years to fully define…leading many to believe the bulk of mortgages will still be backed by the United States government for the foreseeable future.

NorthWest Real Estate

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VA Mortgage Requirements-Do You Qualify?

VA Mortgage Requirements

Mortgage Overhaul and What it Means for You