We live in a society where people are losing their homes at an alarmingly high rate. There are several reasons for this, but one could certainly be avoided -- buying a house that creates a loan that is too large for you to handle. This article will examine how to decide your loan size -- whether you are purchasing or refinancing. We'll look at this issue from the point of view of lenders and from the standpoint of what is actually best for you.
In a conventional, conforming loan -- one in which you have good credit and good job history -- a lender will look at what he calls "debt-to-income ratio." Many mortgage brokers refer to it as DR (debt ratio). They also break it into two categories -- front end ratio and back end ratio.
A front end debt ratio calculates your gross monthly income against your new house payment. Conventional lenders want this number to be at 28 percent or less. So, if you make $3,500 each month in gross income (before taxes and other withdrawals), just take this number and divide by 28 percent. This new number is $980.00, which is the number the lender will use as your front end ratio. So in the lender's mind, you can afford a house payment of $980.00 or less.
Remember, though, this is only half of the equation. Now, the lender will look at your overall debt scenario. When calculating your back end debt ratio, the lender takes your new mortgage and all other monthly credit debts -- car payments, credit card payments, other loans, cell phones, etc. Items like insurance and utilities are not included. Conventional, conforming lenders want this ratio to be at 36 percent or less.
So, to calculate your back end or overall debt-to-income ratio, take your gross monthly income and divide by 36 percent. Again, let's assume you make $3,500 monthly. When divided by 36 percent, you get $1,225.00. Now, add up all your monthly minimum payments, plus your new house payment, and this new number needs to be less than $1,225.00. So, if you have very little debt, you can afford to go all the way to the $980.00 for a new mortgage. If you have a couple of cars, several credit cards and a cell phone, you'll likely have to get much less house.
Now, these ratios are very conservative. In most cases, lenders will allow you to break one or both of these guidelines, based on other factors -- things like A+ credit, good liquid assets or a large down payment.
Or, you may need a loan program that is non-conforming. This would involve a lender who increases these ratios as high as 50 percent, meaning your debt can be half of your gross monthly income. Lenders, you see, want to make loans. That's why they are so rich, because they are doing trillions of dollars in loans each year, and getting back even more in interest payments.
In order to assure yourself of getting a loan that you can afford, you should qualify yourself. It's important to remember that when calculating debt to income ratios, lenders don't take many important factors into account. For example, they allow you to use gross income -- instead of net income. We pay our bills with our net, not our gross. When deciding what you can qualify for, consider your net income.
In other words, add up all your debts and look at the money you have after taxes, retirement, savings, other investments, etc. Also, account for debts lenders do not, such as insurance, groceries, utilities, the probability that taxes on your home will go up, clothing, and spending money for fun and hobbies. After all, you want having a home to add to your life -- not make it more difficult. Lenders leave this part out.
Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about his suspense thriller at http://www.sportsnovels.com. Get his free mortgage finance course at http://www.winningthemortgagegame.com
วันพุธที่ 30 กันยายน พ.ศ. 2552
วันอังคารที่ 29 กันยายน พ.ศ. 2552
The CalPERS Home Loan Program Has Mortgage Loans With Special Mortgage Rates and Benefits
The CalPERS Home Loan Program offers multiple loan programs ranging from Conforming adjustable and fixed rate loans to an FHA Loan. CalPERS mortgage rates in Sacramento are exactly the same as CalPERS mortgage rates all over the state. The PERS program has set fees, float down opportunities, required education for originators, & down payment assistance. These home loan program benefits are just for CalPERS members.
PERS rates are the same from one lender to the next. This is because CalPERS actually sets the rates daily and they do not change throughout the day. They can, but I have never seen them change during the day once they are set. The rates are also structured so that a CalPERS member can pay some of their closing costs through premium pricing if they choose. PERS setting the rates is great because it gives members the ability to chose a loan officer based on service rather than being concerned about mortgage rates in Sacramento companies vs. rates from other area mortgage companies.
The CalPERS home loan program also set's the fees that are allowed on their loans. Lender fees are limited and so are the origination and processing fees. Escrow companies will also discount their fees for a CalPERS loan even though they are not required to. Borrowers don't have to be concerned about loan fees with CalPERS setting them for all loan programs. This, again, allows the borrower to chose their loan officer based on the service that they provide rather than talking with multiple lenders in an attempt to obtain the "best deal possible" on a home loan.
Float down opportunities are another fantastic feature about this program. A float down is simply where a lender drops your rate down to a lower rate after it has already been locked. PERS allows members with locked mortgage rates to be floated down on two specific days. The day the loan is formally approved by underwriting and again on the day that the loan documents are drawn. If the CalPERS rate is lower than the day that the loan was locked then the member's rate will be lowered at no cost. This is why it's called an opportunity, because it must occur on those two days but still a very nice perk with the CalPERS home loan program. If rates are lower on both the approval day and on the day docs are drawn then the member will receive both float downs.
CalPERS also requires originating loan officers to be certified before originating PERS home loans. LO's have to take a course and if they pass will receive their certification and the ability to originate PERS loans. CalPERS Certified Loan Officers have to re-certify every year to make sure that all certified LO's are knowledgeable about the program and can properly assist PERS members. CalPERS also uses this as a way to keep track of the LO's in the program and allows PERS to refer members to quality loan officers who are certified.
Another great feature is one of the last remaining Down Payment Assistance Programs that actually does provide the down payment. This is done using the CalPERS Personal loan which is a loan against the borrower's CalPERS retirement. This is fantastic for members because they can borrow up to 5% of the purchase price. It can be used for down payment ,to cover closing costs or both. With this personal loan, a PERS member can still get 100% financing on a home purchase--something that is not customarily available in this market. If you or your client are a PERS member you really should look into it. The CalPERS home loan program is fantastic, offering its members universally set rates and fees, educated & certified loan officers, float down opportunities, and down payment assistance.
http://mortgageratessacramento.com
PERS rates are the same from one lender to the next. This is because CalPERS actually sets the rates daily and they do not change throughout the day. They can, but I have never seen them change during the day once they are set. The rates are also structured so that a CalPERS member can pay some of their closing costs through premium pricing if they choose. PERS setting the rates is great because it gives members the ability to chose a loan officer based on service rather than being concerned about mortgage rates in Sacramento companies vs. rates from other area mortgage companies.
The CalPERS home loan program also set's the fees that are allowed on their loans. Lender fees are limited and so are the origination and processing fees. Escrow companies will also discount their fees for a CalPERS loan even though they are not required to. Borrowers don't have to be concerned about loan fees with CalPERS setting them for all loan programs. This, again, allows the borrower to chose their loan officer based on the service that they provide rather than talking with multiple lenders in an attempt to obtain the "best deal possible" on a home loan.
Float down opportunities are another fantastic feature about this program. A float down is simply where a lender drops your rate down to a lower rate after it has already been locked. PERS allows members with locked mortgage rates to be floated down on two specific days. The day the loan is formally approved by underwriting and again on the day that the loan documents are drawn. If the CalPERS rate is lower than the day that the loan was locked then the member's rate will be lowered at no cost. This is why it's called an opportunity, because it must occur on those two days but still a very nice perk with the CalPERS home loan program. If rates are lower on both the approval day and on the day docs are drawn then the member will receive both float downs.
CalPERS also requires originating loan officers to be certified before originating PERS home loans. LO's have to take a course and if they pass will receive their certification and the ability to originate PERS loans. CalPERS Certified Loan Officers have to re-certify every year to make sure that all certified LO's are knowledgeable about the program and can properly assist PERS members. CalPERS also uses this as a way to keep track of the LO's in the program and allows PERS to refer members to quality loan officers who are certified.
Another great feature is one of the last remaining Down Payment Assistance Programs that actually does provide the down payment. This is done using the CalPERS Personal loan which is a loan against the borrower's CalPERS retirement. This is fantastic for members because they can borrow up to 5% of the purchase price. It can be used for down payment ,to cover closing costs or both. With this personal loan, a PERS member can still get 100% financing on a home purchase--something that is not customarily available in this market. If you or your client are a PERS member you really should look into it. The CalPERS home loan program is fantastic, offering its members universally set rates and fees, educated & certified loan officers, float down opportunities, and down payment assistance.
http://mortgageratessacramento.com
วันจันทร์ที่ 28 กันยายน พ.ศ. 2552
Obamas Mortgage Loan Modification
Loan Modification happens to somebody who is having financial issues and cannot pay for mortgage payments, having issues with foreclosure, dealing with their lender to adjust the conditions of their mortgage that will help them to pay for the fees easily and affordable.
US President Barack Obama made a goal of "Make Home Affordable" and announced last February 18, 2009. This is to help the homeowners to lessen the amount of mortgage that they pay monthly. In this plan the lender should lower down the monthly interest rates lower than 38% of the borrowers' income. The lenders should be competent in lower down the monthly fees by decreasing the principal owed mortgage with Treasury sharing in the amount of mortgage.
Application for the Mortgage Loan Modification Plan is not that easy. You should be qualified for their criteria in order for you to get approved. To be qualified you should:
1. Have started off your mortgage before 1st of January 2009.2. Have to be an owner or an occupant.3. Have unpaid balance that is equal to or lower than $729,750 for a single family4. Having problems in paying for mortgages due to low family income or the amount of mortgage increased.5. Have monthly mortgage payment should be more than 31% of your gross monthly earnings.
There are also reasons why you may not be qualified for the Mortgage Loan Modification if:
1. You bought the house for additional home or investment purpose.2. You cannot pay for the mortgage because you loss the job for any instance.3. Your mortgage is higher than conforming loan limits.4. You are not an owner or the occupant.
In this plan more people have the opportunity to pay for their home with lower monthly payments and keep their home.
Click here to learn how to get qualified for a mortgage loan modification.
US President Barack Obama made a goal of "Make Home Affordable" and announced last February 18, 2009. This is to help the homeowners to lessen the amount of mortgage that they pay monthly. In this plan the lender should lower down the monthly interest rates lower than 38% of the borrowers' income. The lenders should be competent in lower down the monthly fees by decreasing the principal owed mortgage with Treasury sharing in the amount of mortgage.
Application for the Mortgage Loan Modification Plan is not that easy. You should be qualified for their criteria in order for you to get approved. To be qualified you should:
1. Have started off your mortgage before 1st of January 2009.2. Have to be an owner or an occupant.3. Have unpaid balance that is equal to or lower than $729,750 for a single family4. Having problems in paying for mortgages due to low family income or the amount of mortgage increased.5. Have monthly mortgage payment should be more than 31% of your gross monthly earnings.
There are also reasons why you may not be qualified for the Mortgage Loan Modification if:
1. You bought the house for additional home or investment purpose.2. You cannot pay for the mortgage because you loss the job for any instance.3. Your mortgage is higher than conforming loan limits.4. You are not an owner or the occupant.
In this plan more people have the opportunity to pay for their home with lower monthly payments and keep their home.
Click here to learn how to get qualified for a mortgage loan modification.
วันอาทิตย์ที่ 27 กันยายน พ.ศ. 2552
Obamas New Home Mortgage Loan Modifications Allow Homeowners to Breathe Easier
A lot of homeowners have a good reason to be excited right now. The current economic recession has been tough on many hard-working homeowners, but President Obama's new Making Home Affordable plan may help them to lower their monthly payments.
Announced in mid-February, the Making Home Affordable plan went into effect March 4th, 2009. The plan is twofold. On the one hand, it will make refinancing a viable option for up to 4 or 5 million homeowners who currently don't qualify for refinancing. On the other hand, it will allow for home mortgage loan modifications.
Many people are either facing foreclosure on their home or are beginning to have trouble making payments. As more and more workers are laid off or are forced to reduce their hours or salary, the percentage of their total income that goes into their mortgage is increasing beyond their ability to pay. The plan will grant these loan modifications to eligible homeowners to reduce their monthly payments to 31% of their gross monthly income.
This new lower monthly payment must be kept frozen for a minimum of five years. After five years' time is up, the monthly payment may gradually increase to the conforming loan rate at the time of modification. It is important to note that homeowners do not have to be late on current mortgage payments in order to qualify for the home loan modifications.
Homeowners who take advantage of this type of loan modification are offered an additional incentive by the U.S. government. For every payment that they make on time, participants will get a payment that goes toward reducing the principal balance of their home loan. A homeowner who continues to make regular payments for five years, for example, can receive up to $1,000 per year under the home loan modification incentive plan.
There are a few stipulations about exactly who can qualify. The person must be a homeowner who lives in that property. That is, no "house flippers" or speculators can take advantage of the loan modifications. The participant must also provide proof of gross income and have a loan that was originated before January 1st, 2009. There can only be one loan modification per homeowner under this plan. Modifications can be initiated until December 31st of 2012. This program is currently open only to homeowners who have loans owned by Fannie Mae and Freddie Mac.
For additional information on home mortgage loan modifications, please visit the #1 loan modification resource on the net: http://home-loan-modifications.info
Announced in mid-February, the Making Home Affordable plan went into effect March 4th, 2009. The plan is twofold. On the one hand, it will make refinancing a viable option for up to 4 or 5 million homeowners who currently don't qualify for refinancing. On the other hand, it will allow for home mortgage loan modifications.
Many people are either facing foreclosure on their home or are beginning to have trouble making payments. As more and more workers are laid off or are forced to reduce their hours or salary, the percentage of their total income that goes into their mortgage is increasing beyond their ability to pay. The plan will grant these loan modifications to eligible homeowners to reduce their monthly payments to 31% of their gross monthly income.
This new lower monthly payment must be kept frozen for a minimum of five years. After five years' time is up, the monthly payment may gradually increase to the conforming loan rate at the time of modification. It is important to note that homeowners do not have to be late on current mortgage payments in order to qualify for the home loan modifications.
Homeowners who take advantage of this type of loan modification are offered an additional incentive by the U.S. government. For every payment that they make on time, participants will get a payment that goes toward reducing the principal balance of their home loan. A homeowner who continues to make regular payments for five years, for example, can receive up to $1,000 per year under the home loan modification incentive plan.
There are a few stipulations about exactly who can qualify. The person must be a homeowner who lives in that property. That is, no "house flippers" or speculators can take advantage of the loan modifications. The participant must also provide proof of gross income and have a loan that was originated before January 1st, 2009. There can only be one loan modification per homeowner under this plan. Modifications can be initiated until December 31st of 2012. This program is currently open only to homeowners who have loans owned by Fannie Mae and Freddie Mac.
For additional information on home mortgage loan modifications, please visit the #1 loan modification resource on the net: http://home-loan-modifications.info
วันเสาร์ที่ 26 กันยายน พ.ศ. 2552
Use the Smartest Ways to Get a Mortgage Loan
In today's housing market, it has never been so difficult to secure financing The end of the rainbow is knowing who to consult with and when the optimal time is to start the process.
When homes loans were readily available for any Ted, Shelly or Henry and easier than making apple pie, people could come home feeling relieved on the signing of their new mortgage. However in the current real estate market with skittish banks, all paths for locating a home loan come with their own guidelines and limitations.
The majority of banks have adamantly fastened their lending guidelines so tight and trimmed down their offerings it is tough. There are some banks that will not use the services of mortgage brokers, due to some bad companies for pushing bad loans during the boom years. As a result, this makes securing a home loan more than just a few hours one day retrieving documents and becoming approved. If a borrower wants to get an attractive rate, they will need to research at a minimum the following sources.
Search the Internet
Searching online for a mortgage loan has changed from the days of almost everyone qualifying for a home loan. At some websites, you can browse without giving your identity and receive specific rates for your situation. One must remember that most of these sites are referral services, so in the end you'll more than likely complete your transaction with a bank or mortgage broker.
Pros: If you know the type of mortgage loan you want, the internet should be your starting point; understanding the current rates and closing costs will assist you in knowing if you're getting a competitive rate when you discuss your situation with a mortgage broker or bank representative during the process.
On the other hand, if you are totally new to the process and unsure of what type of mortgage you need, you'll want to discuss everything with an actually loan officer as soon as you can. Watch out for site that want your private personal information; websites which ask for your Social Security number and address right away. They may access your individual credit report, which could affect your score even if you don't get a mortgage with them. Additionally, make certain that all the costs involved are properly disclosed from the company you are dealing with when you receive a rate quote. If not, you may be unpleasantly surprised as you review the closing documents from the lender.
One way to get the best rate and terms is when inserting your information into the online mortgage application; do not approximate your salary or income, credit history score, or other significant data. Information submitted inaccurately will probably get you an inaccurate rate quote as well. Garbage in equals garbage out.
Get a mortgage with the bank directly
Banks are still lending these days, although with the utmost precautions. People who want a conforming loan which is a home loan below $417,000 in all areas, except high-cost areas, since some banks and lenders ceased taking applications on jumbo loans.
Another way to get the most attractive rate available is to do business with a loan officer who works mainly in the local housing market and may have greater access to niche programs for you at a lower rate than a company located somewhere else.
Consult with a broker
Mortgage brokers may have made lots of questionable loans at second glance during the good times. But a good and trusted broker can guide borrowers more thoroughly than you could do on by yourself. If you're actively searching for a jumbo mortgage loan or investment property financing, or your situation will not fit into the conforming category, a broker will have or find lenders who do approve loans such as yours. There are some brokers which specialize in certain niches and that is just why you may need to close your deal.
Ray Heinson is an investor in real estate and sees the current cycle beginning to curve upwards and suggests these resources for Jumbo Home Mortgages and or to Find Low Mortgage Rates from trusted lenders in your area.
When homes loans were readily available for any Ted, Shelly or Henry and easier than making apple pie, people could come home feeling relieved on the signing of their new mortgage. However in the current real estate market with skittish banks, all paths for locating a home loan come with their own guidelines and limitations.
The majority of banks have adamantly fastened their lending guidelines so tight and trimmed down their offerings it is tough. There are some banks that will not use the services of mortgage brokers, due to some bad companies for pushing bad loans during the boom years. As a result, this makes securing a home loan more than just a few hours one day retrieving documents and becoming approved. If a borrower wants to get an attractive rate, they will need to research at a minimum the following sources.
Search the Internet
Searching online for a mortgage loan has changed from the days of almost everyone qualifying for a home loan. At some websites, you can browse without giving your identity and receive specific rates for your situation. One must remember that most of these sites are referral services, so in the end you'll more than likely complete your transaction with a bank or mortgage broker.
Pros: If you know the type of mortgage loan you want, the internet should be your starting point; understanding the current rates and closing costs will assist you in knowing if you're getting a competitive rate when you discuss your situation with a mortgage broker or bank representative during the process.
On the other hand, if you are totally new to the process and unsure of what type of mortgage you need, you'll want to discuss everything with an actually loan officer as soon as you can. Watch out for site that want your private personal information; websites which ask for your Social Security number and address right away. They may access your individual credit report, which could affect your score even if you don't get a mortgage with them. Additionally, make certain that all the costs involved are properly disclosed from the company you are dealing with when you receive a rate quote. If not, you may be unpleasantly surprised as you review the closing documents from the lender.
One way to get the best rate and terms is when inserting your information into the online mortgage application; do not approximate your salary or income, credit history score, or other significant data. Information submitted inaccurately will probably get you an inaccurate rate quote as well. Garbage in equals garbage out.
Get a mortgage with the bank directly
Banks are still lending these days, although with the utmost precautions. People who want a conforming loan which is a home loan below $417,000 in all areas, except high-cost areas, since some banks and lenders ceased taking applications on jumbo loans.
Another way to get the most attractive rate available is to do business with a loan officer who works mainly in the local housing market and may have greater access to niche programs for you at a lower rate than a company located somewhere else.
Consult with a broker
Mortgage brokers may have made lots of questionable loans at second glance during the good times. But a good and trusted broker can guide borrowers more thoroughly than you could do on by yourself. If you're actively searching for a jumbo mortgage loan or investment property financing, or your situation will not fit into the conforming category, a broker will have or find lenders who do approve loans such as yours. There are some brokers which specialize in certain niches and that is just why you may need to close your deal.
Ray Heinson is an investor in real estate and sees the current cycle beginning to curve upwards and suggests these resources for Jumbo Home Mortgages and or to Find Low Mortgage Rates from trusted lenders in your area.
วันศุกร์ที่ 25 กันยายน พ.ศ. 2552
New Fannie Mae Mortgage Loan Guidelines Contain Some Good News And Some Bad News For Marginal Credit
I got this announcement in an email from a lender. =>Fannie Mae Guidelines contain some good news and some bad news for marginal credit borrowers. These changes will take effect May 19th
Seems as though Fannie Mae may be getting a little more conservative on their approvals for the High Risk, High LTV/CLTV loans. What does that mean? Quite simply, some high risk loans will be getting approvals with 'Levels' attached. Which means that they will be paying .5% to 1.5% higher rates than a low risk client. I see this as prudent and very fair for the borrowers. These levels have always existed, so that is nothing new. But the higher risk stuff will be getting 'leveled' more often now.
Another announcement, and this is a biggie, is that they do not require collections be paid regardless of amounts. Remember the "collections allowed up to $5,000"? They will now allow unlimited collections that do not affect title. So, the guy who has a 6yr old chargeoff for $5,500 can get into a conforming loan without paying off his collection. Fannie Mae used to require all collection paid if they added up to over $5,000. The presence of collections will still go into the risk analysis of the loan.
I could speculate on why these changes are being made..... but it would only be a guess. Who knows what all goes into their risk analysis thinking. But I suspect that Fannie is learning what we knew all along. Some borrowers with old collections can still pay their mortgages on time. And that an arbitrary $5K limit did not make sense. The net result is going to be a little higher rate for the 100% loans as a result of the Expanded Level Approval. And some folks with great recent credit may be able to get into conforming rates regardless of old collections.
Is your loan officer running EVERY FILE through Automated Underwriting? They should be..... because a lot of these people in subprime loans probably would have qualified for something better..... a Conforming Loan.
Tom Burris
DallasLoanGuy.com
Dallas, TX
Texas Home Loans
Seems as though Fannie Mae may be getting a little more conservative on their approvals for the High Risk, High LTV/CLTV loans. What does that mean? Quite simply, some high risk loans will be getting approvals with 'Levels' attached. Which means that they will be paying .5% to 1.5% higher rates than a low risk client. I see this as prudent and very fair for the borrowers. These levels have always existed, so that is nothing new. But the higher risk stuff will be getting 'leveled' more often now.
Another announcement, and this is a biggie, is that they do not require collections be paid regardless of amounts. Remember the "collections allowed up to $5,000"? They will now allow unlimited collections that do not affect title. So, the guy who has a 6yr old chargeoff for $5,500 can get into a conforming loan without paying off his collection. Fannie Mae used to require all collection paid if they added up to over $5,000. The presence of collections will still go into the risk analysis of the loan.
I could speculate on why these changes are being made..... but it would only be a guess. Who knows what all goes into their risk analysis thinking. But I suspect that Fannie is learning what we knew all along. Some borrowers with old collections can still pay their mortgages on time. And that an arbitrary $5K limit did not make sense. The net result is going to be a little higher rate for the 100% loans as a result of the Expanded Level Approval. And some folks with great recent credit may be able to get into conforming rates regardless of old collections.
Is your loan officer running EVERY FILE through Automated Underwriting? They should be..... because a lot of these people in subprime loans probably would have qualified for something better..... a Conforming Loan.
Tom Burris
DallasLoanGuy.com
Dallas, TX
Texas Home Loans
วันพฤหัสบดีที่ 24 กันยายน พ.ศ. 2552
Understanding the Benefits of a VA Mortgage Loan
Veterans Administration (VA) mortgage loans in Wisconsin are becoming very popular. Mainly, because of the lack of no down payment mortgages available. Home buyers are facing the reality that qualifying for home loans are becoming more difficult. This specific government mortgage loan program proves home buyers with another option.
Just to recap, a person that is currently active in the military or is a veteran of the military, is eligible for a VA mortgage loan.
Here are the benefits for a VA loan in Wisconsin:
1. No Down Payment Is Allowed - Yes, this is a true no down payment mortgage loan that allows you to finance 100% of the purchase price.
2. No PMI (Private Mortgage Insurance) Payment - With just about any other mortgage loan, if you don't have a 20% down payment, you are required to pay PMI as part of your total monthly payment. Combined with no down payment, not having to pay PMI allows many home buyers to qualify for a larger VA mortgage loan.
3. Not Credit Score Driven - Credit scores are normally a major factor in determining whether or not you are approved for a mortgage loan. VA mortgage loans are approved based on the ability to repay the mortgage payment. Along with this, compensating factors are used to help strengthen your loan application, which helps in getting you approved with lower credit scores. There is no particular credit score that will or will not approve your VA mortgage loan, so don't let this hold you back.
4. Favorable Fixed Interest Rates - Now, interest rates are determined on a variety of factors, so every situation will be different. What to remember is how favorable a VA mortgage loans fixed interest rates are. These fixed interest rates can rage anywhere from only 0.25% - 1% higher than regular conforming fixed rates. So, a veteran or active military borrower will be approved for rates that are not much higher than some one that has great credit and a large down payment.
5. Multiple VA Mortgage Loans - This program is well know for first time home buyers, but what many don't know is that this program can be used a second and sometimes a third time by the same borrower. Whether it is a refinance or the purchase of another home in the future, the VA mortgage loan in Wisconsin, can be used multiple time. This is determined by your certificate of eligibility. Once your certificate of eligibility is received, it will state if you are eligible for another VA mortgage loan in Wisconsin.
Whether you, your family, friends, or co-workers are active in the military or are a military veteran, please share this valuable information. Many people do not understand the benefits of a VA mortgage. Education is important when deciding what mortgage best fits your situation.
Read more mortgage advice to help with any mortgage related questions.
For more help in getting approved for a VA mortgage loan in Wisconsin, go to http://www.homeloanwisconsin.com
Joshua Bucio
Senior Loan Officer
Just to recap, a person that is currently active in the military or is a veteran of the military, is eligible for a VA mortgage loan.
Here are the benefits for a VA loan in Wisconsin:
1. No Down Payment Is Allowed - Yes, this is a true no down payment mortgage loan that allows you to finance 100% of the purchase price.
2. No PMI (Private Mortgage Insurance) Payment - With just about any other mortgage loan, if you don't have a 20% down payment, you are required to pay PMI as part of your total monthly payment. Combined with no down payment, not having to pay PMI allows many home buyers to qualify for a larger VA mortgage loan.
3. Not Credit Score Driven - Credit scores are normally a major factor in determining whether or not you are approved for a mortgage loan. VA mortgage loans are approved based on the ability to repay the mortgage payment. Along with this, compensating factors are used to help strengthen your loan application, which helps in getting you approved with lower credit scores. There is no particular credit score that will or will not approve your VA mortgage loan, so don't let this hold you back.
4. Favorable Fixed Interest Rates - Now, interest rates are determined on a variety of factors, so every situation will be different. What to remember is how favorable a VA mortgage loans fixed interest rates are. These fixed interest rates can rage anywhere from only 0.25% - 1% higher than regular conforming fixed rates. So, a veteran or active military borrower will be approved for rates that are not much higher than some one that has great credit and a large down payment.
5. Multiple VA Mortgage Loans - This program is well know for first time home buyers, but what many don't know is that this program can be used a second and sometimes a third time by the same borrower. Whether it is a refinance or the purchase of another home in the future, the VA mortgage loan in Wisconsin, can be used multiple time. This is determined by your certificate of eligibility. Once your certificate of eligibility is received, it will state if you are eligible for another VA mortgage loan in Wisconsin.
Whether you, your family, friends, or co-workers are active in the military or are a military veteran, please share this valuable information. Many people do not understand the benefits of a VA mortgage. Education is important when deciding what mortgage best fits your situation.
Read more mortgage advice to help with any mortgage related questions.
For more help in getting approved for a VA mortgage loan in Wisconsin, go to http://www.homeloanwisconsin.com
Joshua Bucio
Senior Loan Officer
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