Economics Finance

After having carefully planned and researched, you finally close on a VA home loan thinking that this is the end of all the troubles. As the years pass, so do your family dynamics. Maybe your family has grown in numbers and it’s time to add the extra bedroom, or maybe it’s just a matter of consolidating debt to take advantage of the tax benefits. Statistics show that the average mortgage loan is kept no longer than five years. And, most Americans move within ten years of buying their first home.

Like it or not, you’ll probably be refinancing; and if your considering taking cash out, then this article is for you!

What is a VA cash out mortgage refinance?
In the simplest of words, this is a program that provides you with the option of cashing out the equity that has accrued on your home during your period of stay. You can use the funds as per your requirements and choosing. Continue reading ‘VA Cash Out Refinance’ »

Construed with the aim of rewarding American Veterans, a VA loan is the kind of mortgage loan that helps veterans, their survivors and families realize the dream of home ownership. This is done with the help of the U.S. Department of Veteran Affairs who guarantee the loan provided by qualified lenders.

The loan guarantee program, which came into existence after the United States Congress passed the Servicemen’s Readjustment Act in 1944, has been one of the most important benefits that were distributed under the act. The guarantee makes sure that the lender gets his money back while at the same time removing the clause of down payment for the veteran.

Down to the details… Continue reading ‘VA Loans – An Overview’ »

Everyday I get quite a few questions regarding the American Recovery and Reinvestment Act of 2009 and how it would apply to buying a home using VA financing.

For those of you that don’t know, this act was initially passed as a “tax credit” to first time home buyers up to $8000 dollars.

Many groups like the National Association of Realtors petitioned lawmakers to monetize the tax credit which would allow buyers to use the credit as a form of down payment.

Using a tax credit as down payment mainly benefits FHA borrowers.
With a VA loan, borrowers already have 100% financing in place. Conversely, the FHA requires purchasers to make a 3.5% down payment. In those cases, a monetized tax credit could be used to offset closing costs and related transaction fees.

Technically speaking – VA borrowers could use the tax credit to buy down the VA funding fee.
The traditional VA funding fee is 2.15% for 100% financing. If a veteran puts more than 5% down in the transaction, the VA funding fee drops to 1.25%. For this to work with as little down payment as possible, the home purchase price would have to be $160,000 or LESS. Furthermore, this strategy only makes sense for Veterans intending to put the 5% down regardless of the situation. Otherwise, putting 5% down to save less than 1% in a VA funding fee is crazy. Continue reading ‘Federal Housing Tax Credit and YOUR VA Loan’ »

Even though the VA loan is more lenient than conventional mortgage programs, there are still credit requirements in order to be approved for a VAloan. Most banks require a minimum 620 credit score and 12 months mortgage history with no lates.

Types of imperfections on a credit report that may affect the VAloan approval process:
• Collections
• Late payments
• Judgments

Payment History Factor
Re-payment history is an important factor in getting approved for a VAloan. Your rental and mortgage payment history signify your ability to pay your housing payment and will better qualify you for a VA loan.
If you lack credit history, provide explanations for any of the following:
• If you are a veteran who has been recently discharged and have not been able to establish credit
• Use cash instead of credit on a regular basis for bill paying and purchases
• Veteran has not used credit since reconciliation of bankruptcy and judgments Continue reading ‘Credit Requirements For a VA Loan’ »

Today’s mortgage lending environment is becoming more and more difficult for borrower to get approved for mortgage refinance traction. Since the housing market began to turn lenders have started to tighten up their underwriting standards making it harder for borrower to get approved. Fortunately, for veteran borrowers they have two very flexible transaction options to ease the approval process through their own VA home loan program.

VA Interest Rate Reduction Loan (IRRL)

The 1st option is something called a VA Interest Rate Reduction Loan (IRRL). This is a loan where the veteran borrower already has a VA home loan and would like to refinance down to a lower interest rate given the current market interest rates. The amazing benefit of this loan is that it’s incredibility easy to get approved. There are no appraisals required so value is not of a concern. There are no minimum credit scores; however, some investors and large banks have started requiring minimum credit scores recently.

The paperwork needed to process these loans is minimal at best. There are no paystubs, W2s, or bank statements required. One thing to watch at for is with such easy credit standards veterans become very susceptible to unscrupulous lenders that are more than willing to take advantage of borrower. The majority of my previous clients are receiving unprecedented amount mailers that make it seem that VA rates are lower than that actually are. So please watch out for your closing costs when proceeding with caution with such a transaction. Continue reading ‘VA Refinance Home Loans’ »

Safety of the nation is the most important thing and military personnel are always busy doing their imperative duty of safeguarding nation. Another fact is that the financial needs are same and inescapable. Even military personnel have their families to look after and their financial needs to cater. Sometimes lack of finances at their stretch may act as a barrier in fulfilling the financial needs. If this is the situation then you need not worry because just to allow military personnel fulfill their needs military loans are offered. In urgency of finances this financial alternative can be trusted on.

The most significant part is that military loans are proffered to borrowers at lower interest rates as compared to the other loans available in market. The rates of interest and loan terms are kept flexible.

These loans are multi purpose loans and can be acquired for catering various financial needs easily. The finances secured through financial help can be utilized for purpose of medical treatment, home improvement, debt consolidation, wedding purpose, purchasing car, education, planning a holiday trip and various other uses. Continue reading ‘Military Loans – For All Military Personnel Who Need Fiscal Help’ »

The United States Armed forces which consist of the US Army, Air force, Navy and Coast Guard have carved for themselves a niche in the minds of the American nation. These forces represent the free world and a manifestation of US power all over the Globe. In fact they emphasize, that in the twenty-first century there is only one super power and that is the USA. During the days of the Vietnam War, there was conscription often referred to as the draft. But presently the US armed forces are a volunteer force.

A volunteer force needs to make the service attractive for new recruits. As a part of this the Armed forces have worked out a number of schemes that make the service worth joining. The Military loans are one such scheme that is available to members of the US Armed Services. All combatants are eligible to apply for these loans. The procedure to obtain these loans is simple and minimal paperwork is involved. These loans are available on a 24 hour basis i.e. round the clock. They can also be accessed on the net. The United Armed forces operate on a global scale from Korea to Afghanistan and Iraq to Germany, thus the easy accessibility of these loans is a plus point for the Armed Forces personnel.

These military loans are available from small amounts ranging from $ 500 to larger amounts up to $ 10,000. Military Personnel can avail of loans for any purpose including Auto loan, Cash loan, Computer loan, Home loan as well as Debt consolidation loan. Military loans, advance military loans, military payday loans and VA loans are all benefits available to American men and women who don the colors of the United States Armed forces. These loans are available for any purpose and no collateral is required. Continue reading ‘Military Loans – Incentive to Join the Army’ »

The United States Armed Forces are a projection of American power all over the globe. Two world wars where the tide in favor of the free world only turned because of American armed might, have helped carve for the men in uniform a special place in the hearts of the American people. The Army, Air Force, Navy, Marines, Coast Guard and the National Guard are the main constituents of the US armed Forces.

The United States forces operate on a global scale from Afghanistan to Germany and Korea. Thus American soldiers both men and women are posted at far flung locations. As a rule all official travel expenses of the soldier, seaman or airman is borne by the concerned arm. But in case a member of the soldiers family needs to travel for an emergency or otherwise the bill has to be footed by the soldier himself. This is the time a travel loan can come in handy and mitigate the personal immediate expense of the soldier. Serving and retired soldiers, military dependents and federal government employees are all eligible for these travel loans.

Continue reading ‘Travel Loans For United States Armed Forces Personnel’ »

Is it still worth it for military folks to get a VA mortgage? It’s sad to see so many buyers getting great deals on mortgages, yet restrictions on VA loans are actually causing more difficulties in purchasing a home. Because of the current housing market, many people are paying the price for poor decisions and foreclosing on their homes. It’s a great way to snatch up a piece of property for a great deal, but it creates its own challenges as well. Since many of these buyers are disgruntled when they leave their homes, they are not leaving them in great condition. In some cases people will remove all the cabinets and appliances as one final way to “get back at” the mortgage company for lending them the money to purchase the home in the first place. Even those homes that are still in good condition at the time the forecloses leave, still are going to be subject vandalism and graffiti after sitting vacant for some time while the bank tries to get rid of them. Homes in this condition will receive great scrutiny from the VA and may be impossible to purchase with a VA loan.

Many property agents are saying that banks are overlooking offers from buyers who are looking to make purchases with VA mortgages. This is because they’ve been burned so many times before by having the house tied up for a time while the purchaser tries to make his VA loan work. In the end, the home is returned to the market because the home didn’t meet VA guidelines. In the end, the real estate agent has just wasted time and missed other potential offers. Other, less convincing claims are also circulating that banks are looking on money offers so they can cut back on the number of loans that they hold that are tied to central authority agencies. Continue reading ‘VA Loans For Foreclosures’ »

Everyday I get quite a few questions regarding the American Recovery and Reinvestment Act of 2009 and how it would apply to buying a home using VA financing.

For those of you that don’t know, this act was initially passed as a “tax credit” to first time home buyers up to $8000 dollars.

Many groups like the National Association of Realtors petitioned lawmakers to monetize the tax credit which would allow buyers to use the credit as a form of down payment.

Using a tax credit as down payment mainly benefits FHA borrowers.
With a VA loan, borrowers already have 100% financing in place. Conversely, the FHA requires purchasers to make a 3.5% down payment. In those cases, a monetized tax credit could be used to offset closing costs and related transaction fees.

Technically speaking – VA borrowers could use the tax credit to buy down the VA funding fee.
The traditional VA funding fee is 2.15% for 100% financing. If a veteran puts more than 5% down in the transaction, the VA funding fee drops to 1.25%. For this to work with as little down payment as possible, the home purchase price would have to be $160,000 or LESS. Furthermore, this strategy only makes sense for Veterans intending to put the 5% down regardless of the situation. Otherwise, putting 5% down to save less than 1% in a VA funding fee is crazy. Continue reading ‘Federal Housing Tax Credit and YOUR VA Loan’ »