Here is the outline of the slide video presentation:

VA Fixed Rate Streamline Program Overview

This presentation will help families to better understand how VA streamline refinances work and the benefits they can expect by taking advantage of this program.

• VA Interest Rate Reduction Loan (Streamline) Overview
  • Ryan Johnson    
  • Licensed VA Loan Specialist
  • 801-341-7028
  • ryan@yourvapro.com
• Purpose
  • Improve your understanding of the VA streamline program
  • Explain the Department of Veteran Affairs Interest Rate Reduction Program
  • Take a look at next steps
• History
  • In 1980 the VA designed this program as a way of improving you current loan
  • Paying off old loan and replace it with a new loan that has a better interest rate and better terms
  • Civilians have been doing this for years
• You don’t have to . . .
  • No full appraisal
  • No full credit report
  • No income verification
  • No asset verification
  • No employment verification
  • No inspections
• VA Fixed Rate Loan
  • Very popular VA Loans
  • Number 1 most popular goal of the majority of families I speak with= lower monthly payment as much as possible
  • Lowest Interest Rate
  • Drop our sample veteran from 6.25% to as low as 4.5%
• Fixed rate for the life of the loan
  • Interest rate will never change. Safe Stable and secure
  • The VA offers 30 year, 25 year, 20 year and 15 year terms
• Sample Veteran
• History of the 30 Year Fixed
• Government Has Been Buying Rates Down
  • This Program Almost Over
• Additional Cash Benefits
  • Miss two payments
  • Refund of escrow refund
• At this point I get a lot of questions . . .
  • Is this legitimate?
  • What’s the catch?
  • Is this too good to be true?
  • You can verify at: www.homeloans.va.gov
• 3 Reasons Your Loan Might Go Up
  • Two missed payments
  • Escrow refund check
  • Closing costs
• 4 Good Things About Closing Costs
  • No cash out of pocket. The VA allows them to be rolled into new loan
  • 100% tax deductible
  • They are optional: The VA allows you to take a higher interest rate to pay for the closing costs
• The VA performs a test to ensure this loan will save you more interest than what it costs
• Rates change every day
• What Happens Next?
  We need to explore your actual numbers
  • Please give me a call 801-341-7028
  • Or email me at ryan@yourvapro.com
  • Email you a VA Loan Application
  • You complete the paperwork and fax it back along with mortgage statement, homeowners insurance statement, mortgage note, copies of drivers license and social security number verification (takes most families about 20 minutes)
  • When we receive paperwork your VA Processors prepare your file for closing
  • After the underwriters review and give us the clear to close we will have an authorized representative come to your home within the next four weeks to help you to endorse the final closing paperwork and finalize the new loan
• Please let me know how I can help

This blog post will be short and sweet because I want the video above to do the talking.  That said it is very important that any veteran home owner eligible for a VA streamline loan or even a VA cashout loan be aware that 4.5% VA rates have returned once again to the market!  Most of the approved loan officers here at LowVARates would have never guessed that we would have seen this low 30 yr fixed rate return, but we are all certainly happy that it has.  The FED will stop buying mortgage backed securities is just about a month, so we do not expect interest rates to stay this low much longer.  If you have been waiting to refinance, YOU BETTER DO IT NOW.

There is good news for the VA mortgage market as of February 24, 2010.  The Chairman of Federal Reserve, Ben Bernanke, announced to Congress that “record-low interest rates are still needed to ensure that the economic recovery will last and to help ease the sting of high unemployment.” He seemed certain that recovery would continue, but it would be a slow process. He insisted rates need to stay low for time being, but didn’t indicate how long that would be.

It was then reported home sales hit a low in January, making a new record, which goes to show it will be hard to improve our fragile economy even with the government’s assistance. It fell 11.2% in January, which is the third consecutive month it has dropped, even though Economist was predicting an increase. Not only that, but unemployment is at 9.7%, foreclosure of homes are still at record highs, and it is extremely hard for businesses and individuals to get loans.         

It also was reported that as an effort to increase the economy’s situation, that a bill was passed to help produce more jobs. Not only that, but legislation is planning to help businesses by giving tax breaks to those who choose to help our economy by hiring more employees.

Ben Bernanke promised that the Fed would keep the interest rates as low as possible (near zero) for an “extended period.”  Some think that this “extended period” will last a few months. There will come a time when this will have to reverse once the economy is on more solid ground. The timing is tricky, as waiting too long can cause problems such as inflation, whereas raising rates too soon can disrupt the improvement that will be made.  Bernanke also urged the Congress to act on restoring the nation’s financial structure to avoid events that, in Dec 2007, put us in a recession.

Due to Chairman Ben Bernanke’s speech on February 24, 2010, the Tuesday drop of 101 points was raised on the Dow Jones on Wednesday (the day he gave his speech) by 100 points. This has been great news to the mortgage market! These lowered rates will continue to improve our economy. Our economy is recovering, but since it is still very weak and fragile, the lowered rates need to stay low.

Veterans please keep in mind that interest rates on VA home loans are normally .25%-.50% lower on VA loan than loans made to civilians.

Working in the VA mortgage industry for 8 years I get a lot of questions asked regarding everything from credit to inspections.  Needless to say I have been around the block a few times.  Today I thought I would post a topic because I have recently started focusing on VA purchases instead of the VA IRRRL program.  Now credit becomes a factor of approval whereas the IRRRL does not.

POOR CREDIT DOES AFFECT YOUR LOAN

Back when the subprime market was such a big thing is seemed like anyone could buy a home.  The only thing that was affected by bad credit was the interest rate.  If someone with bad credit got a loan their interest rate would be anywhere from 7.5% to 10%.  The idea was lets get a home and then when our credit improved the home was just refinanced to a lower rate.  Obviously that wasn’t the case because property values dropped and no one could qualify – thus the housing crisis.  Now that the mortgage industry is “back to basics” there are fewer home buyer and an ever increasing need to make sure your credit is in good standing.  Because of the housing crisis the VA loan has been effected although the program hasn’t changed.  What changed was the lenders and their requirements to lend money to Veterans.  Here is how the VA analyzes credit – Its the Veterans past repayment practices on obligations.  This is the best indicator of his/her willingness to repay future obligations.  The Emphasis should be on the Veterans overall payment patterns rather than the credit score and isolated occurrences of unsatisfactory repayment.  In the case of adverse data (late payments) satisfactory credit is considered to be reestablished after the Veteran has made satisfactory payments for 12 months after the date of the last late payment.  Here is where the lenders have decided that does not work.  They have put minimum credit score requirements on VA loans.  Usually if the score is not 640 plus there will be no loan regardless of the payment history.

SO WHAT HAPPENS NOW?

Not all is lost.  In fact I have helped many Veterans when they don’t meet the credit guidelines.  Over the years we have gotten much smarter to our approach to getting a Veteran approved.  LowVARates has created an in house credit repair department.  Just because you may think you have bad credit doesn’t mean you should not try to own a home.  Giving up would be fruitless and a poor decision.  Through credit repair we can increase scores and remove late payments creating a valuable opportunity for a Veteran to own a home.

WHAT ABOUT NO CREDIT?

Having no credit does not automatically disqualify you either.  There are several circumstances where a Veteran might be in this situation.  Maybe a recently discharged Veteran has not had the opportunity to develop a credit history.  Maybe they use cash rather than credit.  Some will not use credit after a BK or credit counseling and enough time has pasted that there is no credit.  If this is the case then here is what can be considered as credit history:  Payment record of rent, utilities, car insurance, health insurance, cell phone bill, etc.  If there are in good standing then credit can be issued for buying a home.  Keep in mind that this is for Veterans having no credit.  These additional payment records will not be used to offset bad credit.

Bottom line is if you (Veteran) are looking at owning a home and you think you have bad credit you still should apply.  There are ways to help you and in some cases it might not be right away but through persistence and dedication on both the Banker and Veteran’s part YOU WILL BE ABLE TO OWN A HOME.

If this information has been useful or you have questions about this please feel free to contact me at 1-866-260-1379 ext 222 or email me at Nate@yourvapro.com.  Have a great day and as always happy house hunting!

The Chesney Family, the mother Brandie and two children Ella & Amelia.

(Layton, Utah, Nov. 30, 2009) – 

A local Utah military family received a free Thanksgiving dinner at Mimi’s Café on Thanksgiving Day courtesy of LowVARates.com.

The Chesney family has endured various challenges in the past year and deserves Lady Luck to shine upon them.  The family was chosen after submitting a short essay stating why they deserved the free Thanksgiving feast.

Tim Chesney, originally from Michigan, is currently deployed in Iraq and will not be able to spend Thanksgiving with his wife Brandie and two twin daughters, Ella and Amelia.

“Deployments are hard.” Brandie Chesney said. “It’s always one day longer that you have not seen your husband, but that also means that it’s one day closer till you can see him again.”

The Chesney’s moved to Hill AFB in April and Tim was deployed to Iraq shortly after.  Tim is an Airman First Class working in Computer Operations in the 729th ACS Squadron.  He is expected to return home in March 2010, but his squadron currently deploys every other six months.

“My family means more to me than anything in this world and I love them more than words could ever explain,” Tim said.  “It’s hard to be away from them during the holiday season.”  

Tim and Brandie were married in March of 2008 and shortly after Tim began basic training in Texas.  A few months later the couple was assigned to Hill AFB.

Military life can provide a large amount of time away from family, but the Chesney’s understand that is major part of enlisting in the military.

“The hardest thing about him being gone is just the support he provides for our family,” Brandie said.  “It’s also hard seeing our daughters grow up and learn new things every day and know he can’t be there.”

Brandie and her two daughters fortunately speak with there Dad through video conferencing on a regular basis.  Every night before Ella and Amelia go to bed, they both kiss a photo of their father and tell him they love him.

This is the second consecutive Thanksgiving Tim and Brandie spend apart.  Last year Tim was in basic training the entire holiday season.  However, Brandie and the children still keep a very positive attitude and understand the nature of the military.

“Two Thanksgivings in a row is definitely hard,” Brandie said. “But I also feel very honored to have a husband who is willing to be away from his family and home to be in Iraq where he is most needed.”

This Thanksgiving Brandie and her two daughters will enjoy a free thanksgiving dinner at Mimi’s Café compliments of LowVARates.com.  Even though Tim will not be at the dinner, he is grateful his wife and daughters are being cared for.

“I know it’s very hard for her taking care of our kids all by herself, especially over the holidays,” Tim Chesney said.  “It makes me feel so much better knowing that she’ll be able to have a nice meal on Thanksgiving.”

The family enjoyed the free meal at the Layton Mimi’s Café on Thanksgiving Day.           

CONTACT:

Craig Walton

Director of Public Relations

pr@lowvarates.com

Office:  801-341-2048

Cell:  801-824-1635

####

My father has always told me that I need to keep it simple. I tend to ramble when writing, so I’m going to take the high road and make this short and sweet for everybody reading.

If you haven’t refinanced yet, and the proposed loans will positively save you money within the first five years… Just do it.

If you’re “thinking” about it but haven’t even figured out whether it’s worth your while?         Just do it. Either it is, or it isn’t.

Truth be told, I’m keeping this message simple because I don’t have the time to go on and on like I’ve done in prior posts, about the countless reasons why you should refinance. I’ve been putting in 60 hour weeks just trying to ensure that my borrowers get their loan closed in November. Everyone I speak with already knows about the two deferred payments; everyone knows about escrow refunds, energy-efficient mortgages, and no-out of pocket costs. The VA Streamline is about as simple as it gets when it comes to home loans.

Simple requirements = tons of qualified applicants, right? These days, e-mailing applications and exchanging information via fax has made it easy for me to get these loans into underwriting in as little as 2-3 days in some cases.

However, for as simple as the VA loan is, and as great as these rates are, by sharp contrast these lenders are equally, if not more difficult than ever.

They sure were an easy-going group until recently. They were like that rich, drunk friend who acted recklessly, but seem to have cleaned up their act to some extent. But even after taking all that bailout money, that hasn’t kept them from being the profit hungry machines they are.

Profit-hungry lenders, unfortunately, are exactly who we have to deal with when we’re looking to deliver the best rates. Hence, selectivity has entered the equation. The more selective a lender is in choosing borrowers, the more profitable his loan portfolio will be. It’s nothing short of price discrimination, much like health insurance companies.  Minimum credit scores, valuation requirements (appraisals), tiered credit pricing, and exclusions for investment properties, manufactured properties, etc. have all become the standard qualifying procedures for many lenders. The domino effect only worsens the our odds of qualifying you with time.

Luckily, with the spectrum of lenders we work with, we can still find a home for just about anybody’s loan. But it’s getting tougher and tougher every day.

It seems that just about every month, I have interested borrowers who find out that the lender we were hoping to use has just disqualified them based upon new criteria.

And every month, I am able to qualify fewer of my valued clients, with fewer of these competitive lenders. The VA Streamline loan used to be an easy solution. It’s becoming a meritocracy.

So much of my time it seems, is spent trying to communicate the urgency to my borrowers that there is no time like the present to get this refinance done.

In fact, right now I’ve got some borrowers whose loans need to close ASAP. If they close even one week behind schedule, they will be disqualified under this lender’s new standards.

So like I said… I’m short on time, I’m keeping the message simple. Don’t wait. Your opportunity will not last forever. It doesn’t cost a thing to process your application and lock in a rate.

You’ve got nothing to lose. 30 minutes of your time is a small price to pay for all that the VA Streamline loan brings.

See, I’ve already spent too much time telling you this.