VA guaranteed loans are made by private lenders to eligible veterans for the purchase of a home which must be for their own personal occupancy. The guarantee means the lender is sheltered against loss if you or a later owner fail to repay the loan. The guarantee replaces the protection the lender normally receives by requiring a down payment allowing you to achieve favorable financing terms. You do still have to qualify to obtain a VA loan. VA uses two methods for earnings qualification purposes. The first means of evaluating a veteran's wages is the residual income method. Under this approach, the underwriter determines that a veteran has sufficient earnings to cover day-to-day living expenses after paying housing expenses, taxes, and other debts such as car payments and credit card payments. VA also uses a debt-to-income ratio approach like many programs. However, VA uses only one ratio (41%) which is the ratio of total debt (both housing and other debt) to income. Your credit background will be equally considered. At least a 620 FICO credit mark is very useful to acquire a VA approval. VA mortgages demand no down payment up to $417,000, which is the conforming loan limit for 2008 is ($625,500 for Hawaii, Alaska, Guam and U.S. Virgin Islands). This means that qualified veterans could get a no down payment purchase loan for those amounts. Greatest Finance Amount: The greatest loan amount tolerable for a VA mortgage varies from county to county. The highest maximum VA mortgage right now is $1,094,625. The lowest maximum VA mortgage amount existing in any county is $417,000. If you already own a home, so you're at least fairly familiar with the mortgage process. If you've never refinanced through VA you might think that it's more complicated because you're involved with a government agency. Well, you'll be pleasantly surprised to learn that a VA Refinance loan is genuinely no different than than the procedure of refinancing with any other loan. Of course, you have many more protections and it will be easier to get qualified with VA. One of the most important advantages of an VA loan is the ability for the loan to be assumed. This gives the buyer a significant advantage in a high interest rate market. VA loans are eligible for streamlined refinance, a plan that allows the borrower to simply refinance the loan to reduce their interest rate and lower their monthly payment. Did you know that you can refinance your existing mortgage to a VA home loan to reduce your monthly payments, get money out of your home, consolidate debt and obtain a fixed-rate mortgage? Compare your VA refinance loan options today — it's easy!
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VA mortgages are offered in recognition of the contributions and sacrifices veterans have made for America. VA Loans are presented for buying your first home, refinancing your present mortgage, or thinking of building your one-of-a-kind dream house.
Spencer is a VA mortgage specialist. More information about VA loans and VA refinance can be found at www.valoans-101.com.. Visit 100% Financing VA Loan with No MI..
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