Economics Finance

Many people believe that the VA loan benefit can only be used once, when in fact, a veteran can obtain a VA loan over and over again as long as there is ample entitlement. The reason for this is that VA entitlement can be restored. Entitlement is the amount the VA will guaranty for each veteran – usually about 25 percent of the amount of the maximum loan amount. Entitlement for each veteran can vary depending on past usage and where you live. And, entitlement may need to be restored from a previous loan in order to cover a new loan being sought.

There is more than one way to restore entitlement. One way is for a VA borrower to sell the home and pay off the VA Loan with proceeds from the sale. In this instance VA entitlement will likely be restored.

But, what if a homeowner doesn’t want to sell the property? Can entitlement still be restored? There is a one-time entitlement restoration for each VA borrower for properties retained and loans paid in full. In this scenario, a veteran may have lived in a home long enough to have made all the mortgage payments or may have made extra payments toward principal to shorten the duration of the military home loan. In any case, payment in full will likely mean restoration of entitlement. And, as long as the borrower has not retained a VA loan financed property in the past, he or she can keep the home. Continue reading ‘Restore Your VA Home Loan Entitlement’ »

Researching is very crucial if you are currently considering a VA home loan. And while you’re at it, you can’t help but discover some funny information about getting this type of loan.

Here are the truths behind the five of the most common VA loan myths:

Myth No. 1: I have bankruptcy on my credit report and lenders won’t make a mortgage loan so I have to wait for ten years for the bankruptcy to be removed from my report.

The Truth: This is absolutely not true. What’s good about VA loans is that it has a more lenient credit guideline. It allows 2 years to pass before issuing a mortgage after bankruptcy. Continue reading ‘4 VA Loan Myths Demystified’ »

Whether you are applying for VA loan or any mortgage loan, a borrower has to pay the closing costs. But what exactly are you supposed to and not supposed to pay? If you’ve already began your research, you will notice words such as allowable and non-allowables. Veterans applying for VA mortgages or loans are only supposed to pay the “allowables.” David Reed, columnist for Realty Times and Mortgage Originator magazine, has created this easy to remember mnemonics (ACTORS) about the allowable closing costs for veterans:

Appraisal (aka Notice of Value, NOV) or inspection charges

Credit report fees
Title or title-related charges
Origination fees and points
Recording charges
Survey fees if needed Continue reading ‘VA Loan Closing Costs 101’ »

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.

Before considering a VA cash out refinance, we recommend speaking to a certified mortgage planner and VA loan specialist. These people can offer you expert advice and also ensure your decision meets both your short and long term objectives. In other words, don’t just refinance your home, develop a plan that betters your financial well being and stick to it. 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…

Let’s talk about eligibility conditions and what makes a VAloan special.
Considering the fact that more than 27 million service personnel and veterans are eligible for the VA loan, the factors deciding who is eligible and who is not become quite important as mentioned below: Continue reading ‘VA Loans – An Overview’ »

In Washington, Vice President Joe Biden announced the Defense Department’s plan to temporarily expand its Homeowner’s Assistance Program (HAP) especially for its service members who were forced to sell their homes at a loss as a result of the country’s housing crisis.

Vice President Biden recognizes “the sacrifices military families make for our country – in terms of deployments, but also moving several times in their career.” “They often don’t get to choose when they move and may be forced to sell their homes when they don’t want to. The Department of Defense (DoD), with funds from the Recovery Act, is expanding its program to help its military families who have been forced to sell their homes at a loss,” Biden adds. With $555 million devoted to the expanded Housing Assistance Program, this project aims to help service members who were forced to relocate due to base closures or usual assignment rotations. Continue reading ‘US Dept Of Defense Homeowners Assistance Program’ »

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. 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’ »

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’ »