by Florida Mortgage Expert on July 19, 2010
I have never quite understood why website owners who focus on VA Loans like to publish the full list of military service requirements for VA eligibility guidelines. I’m looking at a list now and my eyes blur over as I sift through all of the different possible scenarios where a Vet may be eligible. For me, if I were a Vet, this list only makes me want to move on to the next VA mortgage company website versus trying to find something on here where I fit it.
The key to your eligibility for a VA loan if you are prior military service is your discharge paperwork – DD214. If you have this document and know that you were honorably discharged then you are most likely eligible for a VA loan.
If you are considering a VA loan to purchase a home or to refinance your current home and you are prior military your next step should be to either go straight to the VA to see if you can get a certificate of eligibility or go to a VA mortgage lender and ask them to help you get your certificate of eligibility.
The same can be said if you are active military either full active duty or you are a reservist or national guard. If you have been in service for a certain amount of time then you may be eligible for a VA home loan. Your best bet is to contact a VA lender to have them walk you through the application process as well as proving your eligiblity for a VA mortgage.
Once you determine whether you are eligible for a VA mortgage, then you will have to qualify just like just about every other mortgage program out there. You will need to be employed, have good credit, and not owe too much in debt. For program loan specifics and to determine your exact mortgage qualification situation with a VA mortgage loan officer.
by Florida Mortgage Expert on March 30, 2010
LowVARates is not a government agency, is not affiliated with the Department of Veterans Affairs, and is not a mortgage lender. LowVARates is a website dedicated to educating and assisting eligible veteran homeowners in their pursuit of homeownership through the VA loan program. One of the things that LowVARates does better than the other online websites for VA loans, is educate the veteran and assistive veteran in finding the right VA lender for their situation.
Let’s take a look now at what LowVARates feels are the top three VA approved lenders to work with in today’s lending environment.
#1. Flagship financial group LLC is an approved VA lender and also has the ability to act as a VA broker when the situation necessary. Flagship brands to the veteran the unique ability to fund VA loans as a lender when it makes sense for the veteran and also flagship has the ability to broker the VA loan if there is a product that flagship does not offer which would be better suited for the veteran home owner. Because flagship has the ability to both fund loans in its own name into broker loans, LowVARates feels that this is a major benefit in today’s difficult lending environment. As you will see with some of the other VA lenders which are recommended, if they are not willing to broker a loan the other lenders could be less efficient in some areas.
#2. Wells Fargo is one of the most recognized names in the VA loan industry. Approved VA loan specialists have indicated that over the past two years some of the nation’s most reliable and efficient VA lenders have been forced out of business due to the extreme volatility in the housing market. In the past a bank’s ability to stay in business in function properly would not have been an attribute which gave such value to a mortgage originator or veteran homeowners looking to buy a home. However, Wells Fargo has brought stability, efficiency, and certainty to the VA lending market. Loan originators or VA loan officers have indicated that the interest rates, the processing flow, and the wide array of government loan products are the main reasons why they choose to work with Wells Fargo.
#3. MetLife Home Loans has a very unique history as it pertains to the VA home loan. MetLife is better known as an insurance provider, however.
by Florida Mortgage Expert on November 21, 2009
Have you recently lost your job or a major source of income involuntarily? Are your mortgage payments in arrears or do you think you will fall behind with your mortgage payments soon? Are your Option ARM or Alt A ARM getting ready to modify? Have your mortgage payments recently increased? If so, there may be solutions from your loan company to help you stop foreclosure that you are not aware of.
Mortgage loan workouts are mortgage options centered around preventing you from losing your house to foreclosure. There are several different ways that mortgage loan companies provide mortgage workouts to their clients.
Solutions To Prevent Home Foreclosure
- Deferment – Deferment is a settlement that your mortgage lender makes with you to allow you to make part of your mortgage payment at a later date. Basically, the mortgage loan company will make your [current payment smaller] by some amount and add that amount onto your principal that you will have to remit at a later date. This is a good option to halt foreclosure if you have some temporary loss in salary that has been resolved or will be in a short period of time and you just need some temporary relief.Student loans, which are normally deferred until sometime after the student graduates from college, are similar to this type of workout. In the same way, a mortgage can be deferred.
- Repayment Agreement or Forbearance Plan – Your mortgage lender might offer you a forbearance plan if your mortgage is behind due to some short term reduction in income that is now settled. Repayment agreements allow for the delinquent money that you owe from missing a few mortgage payments to be paid over a series of monthly payments. During the forbearance plan your mortgage payment will go up temporarily until the past due money that you owe is paid back. Once the money is paid back that you owe, your mortgage payment will return to its normal level.
- Partial Claim or Second Lien Mortgage – In this mortgage workout, another loan that you may or may not have to make payments on is taken out for the amount of the past due money that you owe. Once you are able to refinance or sell your property, this type of mortgage will have to be paid back.
Options If You Want To Move
Foreclosure on your home can be prevented by the following options.
- First, there is the short sale. A short sale is when you get your mortgage company to agree to let you sell your home for less than what you owe on it. If you plan to sell your home for less than you owe, you will have to get your mortgage company to agree, since they have a lien on your home. This process will take some time so get started early if you plan on selling your home.
- A Deed In Lieu of Foreclosure is the second option. A Deed In Lieu Of Foreclosure is where you would transfer legal custody, or title, of your property to your mortgage lender in exchange for the debt that you owe them. If you do give them legal ownership of your property you will want to make sure that they completely erase your loan. Making loan payments on a house you no longer own or live in is the last thing you want.
Get Help To Prevent Foreclosure
Your best option to prevent foreclosure is to get the help of your mortgage company. The faster you contact them and ask for their assistance the better off you’ll be. Putting in the effort to work out a good faith solution will make them more willing to work with you. Good luck.
by Florida Mortgage Pro on October 19, 2009
Now that home prices have leveled in many parts of the country, many first time homebuyers are looking for creative ways to move into the home of their dreams.It has become a little easier to purchase a home because of the Federal Housing Administration, or FHA.This helps home buyers enjoy the current ,000 tax credit being offered through the end of the year.How does FHA make home buying so attractive?
For starters, you can finance a new home with very little down. 3.5% of the purchase price to be exact.WIth a FHA loan, you can get into your new home with just 3.5% down compared to at least 10% with a conventional loan.5% down, and it doesn’t even have to be your own money.The money can be given to home buyers by a family member. Conventional loans for years have been the staple for purchasing new homes.First time homebuyers took advantage of 100% financing and many utilized 80/20 loans. Now, expect to pay anywhere from 10 to 20 percent down to get a conventional loan, and above 80% is going to require Private Mortgage Insurance.
FHA also allows first time home buyers the opportunity to purchase when conventional lenders issue a denial.The Federal Government insures FHA loans, and because of the state of affairs with the housing market, the guidelines are a little less strict compared to conventional.Perfect credit and a 680 credit score is going to be required by most lenders for conventional loans.A 620 credit score will be required by most lenders for an FHA home loan. Although some lenders will work with scores down to 580, expect your lender to require a middle score of 620 before you are issued a pre-appvoal letter.
FHA is a very strong option for purchases. Although 3.3.5% down payment is required, however, 100% of this down payment can be gifted to the home buyer. What this means is that you can have your down payment gifted from a family member, and walk into your home without having to put any of your own money down.
Up to 6% of the purchase price can be in the form a seller concession. Conventional loans limit the seller credit to 3%, while you can go as high as 6% through FHA.The concession can be used to buy down the rate for the homebuyer, or cover any of the other closing costs.A great way to take advantage of the seller concession is through the 2-1 buydown. By taking advantage of this concession, buyers can get an interest rate 2% below market in the first year, and 1% below market the second.
You can also expect the appraisal process to be a little smoother with FHA compared to a conventional appraisal.A conventional loan requires that the appraisal is ordered through the home valuation code of conduct, while FHA can be ordered directly by the broker or lender.
FHA has been around since 1934, and now represents almost 50% of the purchase market.The growing popularity is not surprising among first time homebuyers. To find out more about how to qualify for an FHA home loan, visit http://www.timmarose.com
by Florida Mortgage Pro on October 6, 2009
Once your offer for your dream house has been accepted, there is still so much to do before you can call the house trully yours. {In the following article, an experienced realtor will familiarize you with the most important steps of the process.}
After your offer has been accepted, the next thing to do is to meet with your legal adviser and have her/him explain you all your obligations following from the contract. The attorney should also advise you as to what expenses you are likely to incur with respect to the closing procedures, including Land Transfer Tax, disbursements and legal fees.
UTILITIES
Letters are sent by your attorney to all municipal or regional utility departments to verify that there are no arrears or outstanding charges, such as gas, water or hydro expenses. The utility departments will also be informed if the equipment on the property is rented or owned, and also about the planned closing date, the name of the new owner and the vendor’s attorney. Details about the billing type and whether the billing is metered, all this is also requested by these letters.
TAXES
A Tax Certificate is asked by your lawyer to verify the amount of the current year’s taxes and to inquire as to arrears and outstanding charges for taxes for the current year and any previous years.
BUILDING & ZONING
The Building and Zoning Department will need to get involved as to the particulars of zoning by-laws and restrictions relating to the distance from the street and side and rear lines, type of construction, lot areas and building areas, lot frontage and depth requirements and permitted uses. Another letter is sent by your solicitor to this department, along with a copy of the survey to reveal all this.
TITLE & EXECUTION SEARCH
Another important part is to determine whether the vendor is the property owner and whether he has the right to convey the property, and that the property is not subject to any encumbrances, encroachments, easements, liens, agreements or mortgages that were not revealed in the Agreement or Purchase and Sale. This is done by the appropriate division of the Land Registry Office, that realizes the Search of title to the property. Also an execution search is done in the appropriate Sheriff’s Office to confirm that there are no executions against the vendor or previous owners of the property that would affect your title.
FINANCING
All the initial searches we have just outlined are taken care of by your attorney. In the meantime, it is up to you to make all the necessary arrangements concerning the financial side of the business. Already before signing the Agreement of Purchase and Sale, you should have decided the amount of financing you will qualify for and the amount you will require to finish the transaction. There are a number of fees that you may not be aware of on the day of closing that relate to mortgage financing. Your legal adviser can advise you of these costs when the financial institution that you chose provides you with a Mortgage Commitment Letter.
BEFORE THE DAY OF CLOSING
You will be invited to show up at your solicitor’s office a few days prior to closing to sign all necessary documents and to provide your solicitor with the balance of closing funds by way of certified cheque.
CLOSING DAY
Your attorney will arrange a meeting with the vendor’s solicitor at the appropriate Land Registry Office to subsearch the title and finish the execution searches. Documents, keys and cheques will be exchanged and your attorney will supervise the registration of all necessary documents. Once the documents have been registered the vendor’s solicitor may release the finances to his clients and your attorney may release the keys to you.
AFTER CLOSING
Now your lawyer will provide you with a reporting letter that certifies your title and explains all the transaction aspects. After moving in to your new home, it is a good idea to check all items that should be included in the purchase price according to the Agreement of Purchase and Sale, are indeed left on the property by the vendor. In case you find out anything is absent, get in touch with your lawyer as soon as possible.
