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Can you combine a VA home loan and state/local first time home buyer grants?

admin — Sat, 29 Nov 2008 05:40:02 +0000

Does anyone know if you can get a VA home loan as your mortgage and then apply for and use federal/state/local first time home buyer grant money for the down payment? I know there are a lot of first time home buyer programs out there, but which ones can you combine with a VA home loan?

VA home loans are a unique way of extending support to the US war veterans, who committed their lives in safeguarding the interests of the country. Therefore, understanding these loans is beneficial. VA housing loan program provides financial assistance to veterans so that they can purchase home at a favorable rate of interest and convenient loan terms. Loans provided by the VA are fixed

http://badcreditloans.awardspace.com/Easiest_Way_to_Get_a_Home_Loan_with_Bad_Credit.html

No prepayment penalties and long amortization terms are another advantage of these loans. Houses provided under VA housing loan programs are duly inspected at the time of construction and require a warranty from the builder. The foremost step is to locate a suitable–>property in a safe locality. Next, the veteran has to go to a lender and apply for a home loan. VA guaranteed loans are provided by private lenders that include banks, mortgage companies and savings and loan associations. No prepayment penalties and long amortization terms are another advantage of these loans.

When the VA inspects a home and they find many problems do they demand payment?

admin — Sun, 23 Nov 2008 08:24:04 +0000

I attempted to buy a house that was declared uninhabitable unless an enormous amount of repairs was done. Now the mortgage broker is claiming that the VA inspector is demanding payment.
Thanks for all your helpful answers.

If, as part of your loan application, you agreed to a loan inspection by a VA qualified inspector (and, if you read the fine print, you probably agreed), you do need to reimburse the inspector for his charges. Your VA inspection was not done at the behest of the seller, but at YOUR behest, because you wanted a VA loan. Such expenses are yours to bear, whether or not the purchase closes.

Do you know anything about VA home loans?

admin — Thu, 20 Nov 2008 08:48:04 +0000

Seven years ago, a family member bought a condo with a VA home loan. The mortgage company sold the account to Fleet who stopped sending bills or coupons for payments. Essentially, they screwed my family member and after two late payments (it took 18 days to process because there was no payment coupon included) they started foreclosure procedures. Really bad company to do business with. She had no choice but to file bankruptcy. They forclosed on her in less then two months and the condo sat vacant for over a year and a half. No one helped her and the mortgage company even hung up on me when I called them. Can she qualify for a VA home loan again?

I am so sorry to hear this kind of thing happening to our veterans that served our country. It is horrible and I am very sad for you. I reviewed the guidelines and according to the VA regulations regarding entitlements for home loans it does not appear that your family member would be able to get another VA home loan. It would be a good idea to contact the Veterans Administration directly and inquire about obtaining another "certificate of eligibility", especially if there is no outstanding deficit judgment. Hope this helps!
FYI: if veterans have financial problems they can call the VA for help prior to the act of foreclosure or bankruptcy. See the below website and let any other veterans they can call for help, they are not alone!

If a home financed through the VA is sold to a buyer, but the mortgage is still in the seller's name, legal?

admin — Mon, 17 Nov 2008 05:42:12 +0000

My fiance' sold his home to his ex-girlfriend via a Buy and Sell Agreement. The ex-girlfriend was to obtain her own financing within five years (that was over 6 years ago). Now, my fiance' still has the mortgage in his name (a $70K liability on his credit), but the ex has possession of the home and is making payments to my fiance's mortgage company. She has horrible credit and cannot get a mortgage in her own name. Now, we have retained an attorney, but she is trying to get my fiance' to sign assumption papers. My question is: With regard to VA laws, does she actually "own" the house or did she just cloud the title? Also, since there was never a release of liability filled out, my fiance' is still responsible financially and with the VA, although his ex has lived there for more than 6 years now. She is basically just paying his mortgage/renting. Also, my fiance' received NO money from the sell… even though his name and VA entitlement was the ONLY one on the loan. Help?

VA loans are assumable. You need to contact a real estate attorney.

VA Graduated Payment Mortgage?

admin — Fri, 14 Nov 2008 02:52:13 +0000

Need more info! Anyone used a gpm before?

Unlike an ARM, GPMs have a fixed note rate and payment schedule. With a GPM the payments are usually fixed for one year at a time. Each year for five years the payments graduate at 7.5% – 12.5% of the previous years payment.

GPMs are available in 30 year and 15 year amortization, and for both conforming and jumbo loans. With the graduated payments and a fixed note rate, GPMs have scheduled negative amortization of approximately 10% – 12% of the loan amount depending on the note rate. The higher the note rate the larger degree of negative amortization. This compares to the possible negative amortization of a monthly adjusting ARM of 10% of the loan amount. Both loans give the consumer the ability to pay the additional principal and avoid the negative amortization. In contrast, the GPM has a fixed payment schedule so the additional principal payments reduce the term of the loan. The ARMs additional payments avoid the negative amortization and the payments decrease while the term of the loan remains constant.

The scheduled negative amortization on a GPM differs depending on the amortization schedule, the note rate and the payment increases of the loan. GPM loans with 7.5% annual payment increases offer the lowest qualifying rate but the largest amount of negative amortization.

On a loan of $150,000, with a 30 year amortization and a note rate of 10.50% with 12.5% annual payment increases, the negative amortization continues for 60 months. The qualifying rate is 5.75% and the negative amortization is 11.34% (approximately $17,010).

The note rate of a GPM is traditionally .5% to .75% higher than the note rate of a straight fixed rate mortgage. The higher note rate and scheduled negative amortization of the GPM makes the cost of the mortgage more expensive to the borrower in the long run. In addition, the borrowers monthly payment can increase by as much as 50% by the final payment adjustment.

The lower qualifying rate of the GPM can help borrowers maximize their purchasing power, and can be useful in a market with rapid appreciation. In markets where appreciation is moderate, and a borrower needs to move during the scheduled negative amortization period they could create an unpleasant situation.

I'd go with a 2/1 buydown or I/O

Are there any mortgage payment assistance programs for people with low incomes due to job losses?

admin — Tue, 11 Nov 2008 07:45:17 +0000

My husband left active duty military and went back to the reserves. We took a 3,000 dollar a month paycut and are having trouble making our mortgage payments. We've had the house for 2 years and it's a VA loan. Are there any mortgage payment assistant programs to people like us here in Colorado? We are trying to avoid foreclosure at all costs. If we could get help with the payments until it sells (houses aren't selling in our neighborhood right now) we could avoid a big headache for us in the future. Anywhere we can turn to?
By the way,
No he was forced to quit active duty because he tore his ACL in PT and Tricare waitlisted a surgery and then said they wouldnt fix it. HE DID have a full time job waiting for him once he was off active duty but because of his knee not being able to be fixed, the couldn't bring him on board as a police officer. He is currently working 2 jobs, and SO AM I despite the fact we have a 1 year old. We are overworked and getting sick and still cant make up the 3000 dollars nor afford to fix the knee. We are NOT hillbillies who dont pay our bills. We each work 60 hours a week between both of our jobs.

You wouldn't qualify.

Your husband didn't lose his job, he quit his job, there is a HUGE difference.

Sorry to sound harsh, but programs weren't designed for that purpose. The smart thing to have done is to have had a full time job BEFORE he left active duty military.

Is he even looking for a job? Are you? Is there a reason why one or both of you can't work two jobs?

The reserves is only one-weekend a month…where did he think the money was going to come from?

Best Mortgage Financing?!? VA or Traditional loans in today's market–?

admin — Sat, 08 Nov 2008 01:12:03 +0000

Which is the better way to finance a home…

Home price… $230K
Available liquid savings (not including retirement of course) $70K
Excellent Credit: 750 score

Traditional Loan, putting $50K down (little over 20%) OR
VA Loan

what say you????
Sophia D.. I checked that website..with a down payment of $50K the funding fee would be 1.25%. So does that make it a better deal than conventional???

Go conventional if you can. You wont have mortgage insurance. Government loans have a cheaper rate, but not enough to make up your mortgage insurance. You wont have mortgage insurance with 20% down on conventional. I wouldnt even consider a VA under what you have said. Go fannie mae or freddie mac. Here is the VA funding fee chart. If you are exempt from the funding fee it might be another issue. But from what you said go conventional.

http://www.homeloans.va.gov/docs/funding_fee_tables.doc

I have a conv. loan & a 2nd mortgage should I go for a Va and combine both mortgages?

admin — Tue, 04 Nov 2008 23:27:15 +0000

VA is great for the first time you use it.
If you're not disabled…they will charge you the funding fee.
First time around is 2.2%…and the second time is around 3%. This funding fee is one of the fees associated with the loan. It's a great loan if you plan to use it the first time to avoid PMI, but savings comes through years of living in the home.

FHA is 1.5% funding fee…cashout up to 95%.
MyCommunity does rate/term refi only, and they have no funding fees, but a small monthly payment of PMI.

You have many options…find a broker who can do all government loans

Mortgage CO had appraisal done for VA loan, we switched mortgage CO. and went with conventional loan instead?

admin — Sun, 02 Nov 2008 00:46:02 +0000

Are we legally bound to paying for this appraisal? The reason we couldn’t get the VA loan because repairs needed to be made to the property and the sellers( a bank) weren’t willing to make any or let us (the buyers) make any before closing. SOLD AS IS. We had a lot of problems with this last mortgage company ( the broker even resorted to yelling at us). The appraiser didn’t even finish the job because he said the utilities weren’t on . They were on at the breaker box he wouldn’t call our realtor to have her come flip the breaker. He also didn’t take into account the 6.7 acres the house sits on and compared it to smaller houses. Our we legally bound to paying him being that we are going to have to get another appraisal from someone else?
We had to switch realty companies because the sellers weren't willing to repair or let us repair the house and the VA wanted it to be immaculate. Also the mortgage place started yelling at my husband and I because we were asking specifics on how to fix the house so that the VA would let us in.

Yes, you legally have to pay for the appraisal. The fact that it doesn’t qualify for a VA loan doesn’t make any difference.

Generally speaking, if a property has make than 5 acres, the extra acerage isn’t included when making value adjustments.

VA and FHA loans require the property to be in livable condition with no apparent defects before they will finance the property. Since the seller is required to spend the money to get it to this condition, they rarely work with VA or FHA loans if the property is sold as is.

The housing market is tough right now but there are still a lot of good deals out there.

Keep looking.

Are closing costs rolled in with the mortgage with a VA (veterans) loan?

admin — Wed, 29 Oct 2008 22:44:04 +0000

Yes but you must first qualify for a loan that you will be able to do this with. Also if it is possible sometimes the seller will cover closing costs if he/she is getting what they want for the house.