NorthWest Real Estate » Mortgage Payments

VA Mortgage Requirements-Do You Qualify?

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

VA Mortgage Requirements-Do You Qualify?

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

Bank of America’s Great Cash Giveaway

admin — Wed, 21 Apr 2010 21:31:03 +0000

Bank of America’s Great Cash Giveaway

The madness continues. Bank of America (BoA) is considering a special program for unemployed borrowers that would offer as many as nine months of no mortgage payments while they hunt for a new job. A spokesperson for BoA says that the program is still pending regulatory approval. Whether or not the payments are forgiven or just deferred has not been solidified yet, but according to the spokesperson, a likely option would be to capitalize the past due payments into the new permanent modification. If the borrower finds employment during the nine-month period, BoA would structure a loan modification using its own programs or the Home Affordable Modification Program (HAMP). BoA completed almost 32,900 HAMP permanent modifications through March, up from 20,666 in February.

BoA was the first to commit to the HAMP second-lien program from the Treasury and the first to offer principal write-downs as part of the servicing process. If the borrower cannot find a job after nine months, the borrower would enter into a previously agreed upon deed-in-lieu of foreclosure arrangement. BoA would offer a minimum $2,000 “cash-for-keys” check to the homeowner. “Sustained recessionary impacts and their effect on the unemployed, in particular, demand we consider creative solutions above and beyond what is currently available to put these customers in the best possible position to sustain homeownership,” the BoA spokesperson said. This month, 15 million people held no job, and the overall unemployment rate stayed at 9.7% in March – the same as February, according to the US Department of Labor.

NorthWest Real Estate

Loan Modification Fees Eliminated If New Rule Is Passed

admin — Mon, 08 Feb 2010 21:19:17 +0000

Loan Modification Fees Eliminated If New Rule Is Passed

FTC says no more upfront loan modification fees

The Federal Trade Commission has proposed a new rule that would prohibit third parties, including loan modification specialists and loss mitigation attorneys, from collecting payment for foreclosure prevention services until after they obtain a documented offer from a lender or servicer for a modification or other form of mortgage relief. “Homeowners facing foreclosure or struggling to make mortgage payments shouldn’t have to contend with fraudulent ‘companies’ that don’t provide what they promise,” FTC Chairman Jon Leibowitz said. “The proposed rule would outlaw up-front fees so companies can’t take the money and run.” The FTC has brought 28 cases against companies suspected of foreclosure rescue and mortgage modification scams, and state and federal law enforcement partners have brought hundreds more.

According to the agency, generally these cases charged that companies do not provide the services they promise and that they misrepresent their affiliation with the government and government housing assistance programs, including the Making Home Affordable program. “Far too many homeowners have paid up-front fees to bad actors who promised loan modifications but never delivered,” Treasury Secretary Timothy Geithner said. “I commend the FTC for proposing a strong set of safeguards to protect consumers from these predatory practices.” The proposed rule also would bar providers from telling consumers to stop communicating with their lenders or mortgage servicers. It would also require them to disclose to consumers that they are for-profit businesses, the total amount consumers will have to pay, that neither the government nor the lender has approved their services, and that there is no guarantee that the lender will agree to change their loan.

If you are in a situation that the above article describes, than give me a call at 253-209-9701 right now and I will help you or I will point you in the right direction to someone that can help you. There are plenty of programs available today to remedy most situations.

NorthWest Real Estate