VA LOANS FINANCE, Inc. VA LOAN MORTGAGES, Inc. The preferred name for VA home loans, FHA loans and mortgages in the United States of America
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Table of Contents: 2 3
... About Our Company - Introduction ... History of VA Loans & Definition
4 ... VA Loans, Uses, & Advantages 5 ... Certificate of Eligibility 6 ... VA Loan Eligibility Chart - VA Loan Prep 8 ... Funding Fees & VA Loan Amounts 9 ... Calculating a VA Loan - Estimated Closing Costs 10 ... Refinancing with a VA Loan
REAL ESTATE
FHA HOME LOAN
11 ... Wrap Up - Contact Information
FHA HOME LOAN
An Easy VA Home Loan Guide
VA LOANS FINANCE
VA LOANS FINANCE
MORTGAGE
REALTY
VA LOAN HOUSTON SERVICES
REAL ESTATE SERVICES HOUSTON
Get to know our VA home loan experts! Our specialization in Houston VA loans makes us different and special. We endeavor to provide our customers, unmatched services by walking through the entire loan application process in a one-to-one manner and in a step-by-step approach
Meet our specialist real estate professionals! VALoansFinance.com is something more than a VA home loan lender. We provide an array of professional real estate services in the Greater Houston Area as a mortgage expert for those who are novice in home buying arena as well as to all seasoned investors in real estate.
• Pre-Qualification for VA loan • Home purchase through VA loan • VA IRRRL or Streamline Refinance • Getting approved for a Second VA loan
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• Representation for buyer • Representation for seller • Representation for investor • Search for property in Houston, TX, online
THE VA HOME LOAN GUIDE MADE SIMPLE THE REAL MEANING OF A VA HOME LOAN IS THE “MONEY” OR “SUM” PROVIDED TO US MILITARY VETERANS (EX-SERVICEMEN) AND ACTIVE DUTY MEMBERS BY FEDERALLY CERTIFIED BANKS, PRIVATE LENDERS AND MORTGAGE COMPANIES WHICH ARE APPROVED BY THE US DEPT.OF VETERAN AFFAIRS AS THEY FUND THROUGH THE VA GUARANTY LOAN. ALL ELIGIBLE MILITARY VETERANS AND ACTIVE DUTY MEMBERS ARE SANCTIONED THESE LOANS IN THE FORM OF VA BENEFITS IN ORDER TO PURCHASE A HOUSE, APARTMENT, CONDOMINIUM, COOPERATIVE HOUSING UNIT OR A FULLY FABRICATED HOME IN THEIR STATE OF RESIDENCE. What are the reasons for choosing a VA loan over a conventional loan? There are a good number of reasons as to why a VA loan is better • There is no down payment in VA loans.
• A comparatively lower interest rate when compared to conventional loans. • It is easier to qualify for a VA loan with respect to Credit Scores. • The eligibility criteria and qualification for a VA loan is less stringent for veterans. • Here borrowers do not have to pay a Private Mortgage Insurance (PMI). • The Dept. Of VA takes on the responsibility in case of a VA loan default.
VA LOAN BENEFITS PROGRAM STARTED IN 1944 BY THE DEPARTMENT OF VETERAN AFFAIRS IN THE YEAR 1944, THE DEPARTMENT OF VETERAN AFFAIRS STARTED A LOAN PROGRAM TO SUPPORT MILITARY VETERANS BY HELPING THEM QUALIFY TO BUY A HOUSE THROUGH VA OR FHA LOANS BY USING THE VA BENEFITS. AS OF TODAY, THE DEPARTMENT OF VA HAS APPROVED OVER 19 MILLION VA HOME LOANS SINCE THE INCEPTION OF THE PROGRAM BY CLEARING OVER 80% OF INDIVIDUALS WHO HAVE APPLIED FOR THIS BENEFIT FOR BUYING THEIR DREAM HOME. THE MAIN REASON WHY VA LOANS ARE APPROVED MORE EASILY AND QUICKER WHEN COMPARED TO CONVENTIONAL LOANS IS SIMPLY BECAUSE THE DEPT. OF VA GUARANTEE TO REPAY A CHUNK OF THE LOAN THE LENDER IF THE BORROWER FAILS TO MAKE THE PAYMENT OR DEFAULTS ON THE MORTGAGE. WITH SECURITY COVER AND INSURANCE GUARANTEE LIKE THIS, IT IS POSSIBLE FOR VA LOANS FINANCE TO HELP VETERANS AND ACTIVE DUTY MEMBERS FULFILL THEIR DREAMS OF BUYING A NEW HOUSE.
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VA HOME LOANS AND HOW IT BENEFITS?
VA HOME LOANS CAN BE USED FOR
VA HOME LOAN ADVANTAGES > No down payment required for buying a home as long as the selling price does not exceed the appraised value. (Qualification is mandatory in respect to monthly income and credit requirement.)
> Buying a new house > Buying a residential condominium > Buying a cooperative housing unit
> Improving or altering your existing house which needs a repair
> No need of buying Private Mortgage Insurance (PMI). VA guidelines and norms restrict the limit that one can be charged for closing costs. > In a majority of cases closing costs can be paid by the seller. (Borrowers can keep this in mind while negotiating or bargaining the sales price.) > In a majority of cases closing costs can be paid by the seller. (Borrowers can keep this in mind while negotiating or bargaining the sales price.)
WHO ARE ELIGIBLE FOR A VA HOME LOAN? The department of Veteran Affairs has initiated the VA benefit program in the year 1944 and VA home loan constitutes an important part of it as it lends money to all eligible veterans and active duty members if they choose or think to buy a house in the United States of America.
> VA can always render assistance and support if the borrower faces difficulty in making the monthly mortgage payment. > No need to be a first-time property or home buyer. > VA loan amount can be reused to refinance an existing mortgage. > As long as the individual qualifies for the loan, VA supported loans are assumable.
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ALL VETERANS AND ACTIVE DUTY MEMBERS INCLUDE: • Veterans
• Reservists
• Active duty members
• Unmarried surviving spouses
CERTIFICATE OF ELIGIBILITY (COE) FOR VA HOME LOANS There is no specified maximum loan amount. But the new law does have a provision on the amount of liability one can assume. This eventually affects the amount of loan; a certified lender will lend you. If you are able to make a down payment, the lender can increase the amount and size of loan. In a broader perspective, there are two techniques employed by a lender to calculate the VA loan amount for a veteran or service member who has the eligibility to receive VA benefits. A certificate of eligibility (COE) must be obtained before one applies for a VA loan from a government certified lender. This is actually possible to do without even consulting your VA lender but it is always advised to take their help as they can process the entire thing for you. Since VA Loans Finance is a lender, the best part of it is that you don’t have to look any further than valoansfinance.com who can help fulfill your dreams. Some information that you need to furnish are as following: • Name, physical address, phone number • Social Security Number (SSN) • The military branch, office, headquarters (HQ) where you served. • If any previous VA loan, then the VA loan number.
ELIGIBILITY FOR VA BENEFITS (Refer to chart on page 6)
Individuals who are considered eligible for VA home loan programs are: • All unmarried spouses of deceased veterans who died in action or due to a service related injury.
• All unmarried spouses of missing military personnel in action or prisoners of war (POW) who have been missing for over 90 days.
• All US citizens who have served in an allied nation during the 2nd Word War (WWII) are eligible.
The eligible military members include the following: •
Veterans / active duty members / reservists / unmarried surviving spouses.
•
It also includes Coast Guard reserves / Guards / Marine Corps Reserves / Air Force Reserves / Navy Reserves.
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THE CERTIFICATION OF ELIGIBILITY (COE) & CERTIFICATE OF & ELIGIBILITY GUIDE IF YOU ARE:
YOU WILL NEED:
Veteran
DD Form 214; We are required to have a copy showing the character of service (item 24) and the narrative reason for separation (item 28).
(Includes ex-servicemen of the National Guard or Reserves deployed for Federal service) Active duty service Personnel
A recent statement of service signed by the adjutant, personnel officer, or commander of your unit or higher headquarters showing: - Your full name - Social Security Number (SSN) - D.O.B Entry date on active duty - The duration of any lost time - The name of the command providing the information
Presently serving the Selected Reserve or the National Guard and have never been deployed for federal service
A recent statement of your service signed by the adjutant, personnel officer, or commander of your unit or higher headquarters showing: - Your full name - Social Security Number (SSN) - D.O.B Entry date on duty - The total number of creditable years of service - The duration of any lost time - The name of the command providing the information
A discharged personnel from the National Guard who has never been deployed for federal service
EITHER:
NGB Form 22, Report of Separation and Record of Service, for each period of National Guard service
OR:
NGB Form 23, Retirement Points Accounting, and proof of the nature, character and duration of service
A discharged member of the Selected Reservewho has never been activated for federal service
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A copy of your recent annual retirement points statement and evidence of honorable service
THE CERTIFICATION OF ELIGIBILITY (COE) & ELIGIBILITY GUIDE CATEGORY B
IF YOU ARE:
YOU WILL NEED:
The surviving unmarried spouse of a service member who died on active duty
If you are already receiving Dependency and Indemnity Compensation (DIC), you do not need to send any documents If you don't receive DIC, please send us: - A copy of the DD Form 1300 (Report of Casualty) from the military - A copy of your marriage certificate It would be great to add a simple signed statement saying that you would like to apply for DIC. If you qualify for the home loan benefit, you probably qualify for monthly payments under DIC. Put the service member's Social Security number on all documents.
The surviving unmarried spouse of a veteran who died as a result of military service
If you are already receiving Dependency and Indemnity Compensation (DIC), send us a copy of your award letter. (Usually, you will already have a record on file at a VA regional benefits office.) If you do not receive Dependency and Indemnity Compensation (DIC), please send us - A copy of the veteran's DD Form 214 A copy of the veteran's death certificate - A copy of your marriage certificate We recommend that you add a simple signed statement saying that you would like to apply for DIC. If you qualify for the home loan benefit,you probably qualify for monthly payments under DIC. Put the veteran's Social Security number on all documents.
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THE VA HOME LOAN PROCESS, CLOSING COSTS & LENDER LOAN CALCULATIONS LENDER - BORROWER VA LOAN CALCULATIONS The lender probably uses two methods to perfectly calculate a VA loan for a veteran or a service member who are eligible for receiving VA benefits. • First Method Calculating Residual Income: The lender adds up your routine housing expenses, taxes, and additional debt payments (car and credit cards), then they subtract this total from your income. From there the lender decides whether you´ll have enough money left over after all of your expenses incur. • Second Metho Debt-to-Income Ratio You can calculate the ratio of your total debt using the VA rules. It includes both housing debts and other miscellaneous For Additional Information: Call our VA loan experts for a FREE Quote on VA home loans.
YOUR CLOSING COSTS THE VA LOAN FUNDING FEE We do charge a funding fee even though we do not require a private mortgage insurance. There are other costs of the VA loan which will be incurred or involved. The VA lender charges interests and all other costs have to paid at the time of the closing. HOW TO CALCULATE A VA LOAN FOR A BORROWER?
• It is upon the lender to decide, how much interest rates discounts points and closing costs would be charged. The reason why you would choose VALoansFinance.com over others is because of the lowest interest rates, prevailing in the industry. • The seller of a house may wish to pay some closing costs for the buyer of the house in a situation where the maximum loan concession amount is 4%. BASIC REQUIREMENTS
• The house you are purchasing should be the primary “living in” residence of the home buyer which is ‘YOU’. ” • The buyer must pass the eligibility criteria in regards to income and credit score as the buyer can be turned down if he / she is not found eligible for the loan amount.
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WHAT COULD BE MY VA GUARANTY LOAN AMOUNTS For all regions and locations in the US other than Alaska, Guam, Hawaii, and the Virgin islands, the maximum VA loan guaranty is the greater of 25% of:
VA LOAN FUNDING FEES LENDING FEES AND CLOSING COSTS FUNDING FEE FOR ACTIVE DUTY & VETERANS
FUNDING FEE FOR RESERVISTS & NATIONAL GUARD
Loans for purchase or construction with down payments of less than 5%, refinancing, and home improvement
2.15%
2.40%
Loans for purchase or construction with down payments of at least 5% but less than 10%
1.50%
1.75%
Potential loan amount of $1,094,625 with no down payment for the period of January 1, 2011, through September 30, 2011.
Loans for purchase or construction with down payments of 10% or more
1.25%
1.50%
In Alaska, Guam, Hawaii, and US Virgin islands, the maximum guaranty is the greater of 25% of:
Loans for manufactured homes
1%
1%
Interest rate reduction refinancing loans
.50%
.50%
Assumption of a VA-Guaranteed loan
.50%
.50%
Second or subsequent use of entitlement with no down payment
3.3%t
3.3%
IF THE VA HOME LOAN IS‌
(a) $417,000 or (b) 125 % of the area median price for a single family residence, but in no way the guaranty exceeds 175 % of the Freddie Mac Loan limit for a single family residence in the county in which the property securing the loan is located.
(a) $625,500 or (b) 125 % of the area median price for a single family residence, but in no way the guaranty exceeds 175 % of the Freddie Mac Loan limit for a single family residence in the county in which the property securing the loan is located. Potential loan amount of up to $1,641,937 for the period of January 1,2011, through September 30, 2011. HOW MUCH LOAN WILL MY INTEREST AND FUNDING FEE COSTS BE? There is no pre set guarantee amount based on the calculations when the VA Loan is being revised by the lender, however, there are general guidelines to remember, that is the VA will guarantee 25 % of the principal loan amount, up to the maximum guaranty. The maximum guaranty varies depending upon the location of the property.
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The VA funding fee and up to $6,000 USD of energy efficient improvements can be included in VA home loans. Other miscellaneous closing costs must be paid by the veteran,except most costs can be included in refinancing loans.
HOW TO REFINANCE A VA LOAN? THE 3 IMPORTANT VA LOAN REFINANCE PROGRAMS
TYPE ONE: VA Interest Rate Reduction Refinance Loan (IRRRL)VA Streamline Refinance VA streamline refinance can be effectively used when you already have a VA home loan for your existing home. The sole reason why you would choose to refinance would be to achieve a lower interest rate for your mortgage using a VA Interest RateReduction Loan (IRRRL). The VA IRRRL enables lower interest rates on a current VA home loan as well as no closing costs.
Benefits of a Streamline Refinance - IRRRL • No appraisal required. • No income or credit check to qualify • No monthly mortgage insurance • Only .5% funding fee on all interest reductions • No out-of-pocket costs
TYPE TWO: Cash-out or debt consolidation refinances If you have an equity in your current home, your VA benefits provide you the option to refinance your current VA Home loan and then receive a cash out payment that is up to 90% of your home’s value.The money Left over from your home's appraised and calculated value can be thereafter used for paying off credit card debts, remodeling your home or simply for paying other expenses.
Advantages of Cash-Out VA Refinance
• You can avail cash out of up to 90% of your home • Monthly mortgage insurance is not a requirement • No out-of-pocket closing costs TYPE THREE: Conventional to VA Streamline Refinance The Conventional to VA Refinance option requires a funding fee, which the federal government charges to insure your VA Home Loan with the lender. The fee is 2.2% for all veterans who are first time users for such type of a home loan. The good thing about the Funding Fee is that it can be financed into the cost of the loan.
Benefits of a Conventional to VA Refinance • No monthly mortgage insurance • Your new interest rate may be lower; in fact, if you have an average credit, you may be able to get the same low interest rates available to those with perfect credit. • You can also take cash-out up to 90% with a VA Refinance • No out-of-pocket closing costs
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THE CONCLUSION As a recap, as long as you abide by the steps mentioned in this e-guide, you are a step away from owning your new and very own home with a VA Loan! Points To Remember… Every Active Duty Service Member and Ex-Veteran reserves the right to use their VA home loan benefits to become a homeowner. The VA Home Loan benefit enables all active duty veterans and military service members to make the first step in believing and achieving the American Dream to own your own house. Don´t Forget… VALoansFinance.com is the top provider of VA Home Loans and VA Real Estate services in the United States of America. Working with Active-Duty Military Service Members, both (Men & Women), as well as with the Retired Veterans is a humbling but a proud experience for our company and our professional team of VA loan experts.
THANK YOU FOR SERVING OUR GREAT NATION! WE STRIVE TO QUALIFY YOU TO RECEIVE YOUR VA HOME LOAN! States Where You Can Find a VALoansFinance.com Loan Specialist are:
- Texas - Florida - Virginia - Colorado - California - Oklahoma - North Carolina - Illinois Contact Us Today For More Information - Alabama Phone: (866) 216-3577 Email: info@valoansfinance.com
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For Obtaining a Certificate of Eligibility (COE): Visit – The Department of Veterans Affairs Website: http://www.homeloans.va.gov/elig1.htm After you complete the Certificate of Eligibility, mail it to: Corporate Office – Houston, TX 1121 Delano Street Houston, Texas, 77003 United States