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VA 4.5% 30 Yr Fixed Rates are Available for Veterans Again

Tuesday, March 9th, 2010

 

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.

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Posted in VA Cashout Refinance, VA Loan, VA Refinance, VA Streamline Refinance, va interest rates | No Comments »

Military Veterans need to know how their credit scores affect them

Monday, March 8th, 2010

 

If you aren’t careful about your credit, you could end up paying dearly for a low credit score. Not only can a low score stand in the way of getting a loan for your dream home or dream car, but even if you do get the loan, a less-than-stellar score will make it expensive. As your credit score decreases, you become more of a credit risk in the eyes of lenders. This means they’ll attach a higher interest rate to your loan, and your monthly payments will jump. On the other hand, a high score will lower that interest rate.

Although the score has a big impact, keep in mind that there are other factors that influence the interest rate you get for a loan besides your credit score. These might include things like the type of property you are using the loan to buy, how much of your own money or equity is going into it, the costs the lender pays to make the loan and so on.

In addition to banks and lenders, there are landlords, merchants, employers and insurance companies jumping on the credit score bandwagon. Of all of these, the fact that insurance rates are being determined by credit scores is causing consumers the most alarm. To most, it seems that your credit history and your driving record have little in common. Insurers, on the other hand, have found that credit scores help them predict how likely someone is to file claims. The rule of thumb is the lower the score, the higher the likelihood of filing claims. ­They don’t use the same score that banks and lenders use, however. They use a slightly different formula for their calculations and actually call it an insurance score.

Insurers’ use of credit histories to determine rates is under scrutiny nationwide. Many states are passing laws restricting this practice. In a few states, insurance companies can’t make decisions based solely on credit. In some others, if an insurance company makes a decision that negatively affects your policy based on your credit, it must disclose to you the reasons behind the decision [source: CreditInfoCenter].

Another practice that particularly upsets consumers has to do with credit card companies’ policy of universal default. Although we’ve already learned how a credit score can determine your interest rate, in the case of credit cards, your interest rate can change at the drop of a hat — or rather, at a drop in your score. Even if you always pay your credit card bill on time, if you default on a completely separate loan, your interest on your credit card debt could rise dramatically.

Prospective lenders aren’t the only ones who judge you based on your credit report and credit score. Potential employers check out your credit report too. Why is that you ask? After all, they’re in position to pay you, not the other way around. But businesses reason that the way you handle your finances is a reflection of your behavior in other areas of your life. If you’re late paying bills, you may be late to work. If you default on your car loan, you may not follow through with an important assignment.

Even if your credit woes can be explained, bad credit is a distraction from the employer’s perspective, and it detracts from worker productivity. Recent research shows that employees with credit problems are significantly less productive on the job than those without. So, the easy way out for the employer is to not bother to find out what’s going on, but to hire someone with good credit instead.

Increasingly, credit checks are a standard part of hiring and even promotion process at companies large and small throughout the United States.

All this adds up to say that credit scores are enormously important. So putting a little thought into improving your score could prove a good investment.

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Posted in VA Credit Score Info | No Comments »

Can I get a VA loan with Poor or No Credit?

Sunday, February 14th, 2010

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!

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Posted in VA Cashout Refinance, VA Credit Score Info, VA Loan, VA Purchase, VA Refinance | No Comments »

Top 5 reasons my past VA loan clients have enjoyed a VA loan

Saturday, January 23rd, 2010

Here is one loan officer’s Top 5 list of reasons why veterans enjoy the VA loan.

 

  1. I have helped hundreds of veterans either refinance or purchase homes using their eligibility. I think the main attraction to my clients is low interest rates. Government insured loans on average our more competitively priced than conventional. In the last year we have seen rates as low as 4.25% fixed. 
  2.  No mortgage insurance, unless you have a loan that is under 80% of the appraised value, you will pay PMI (premium mortgage insurance). this is not the case on a VA insured loan, VA homeowners do NOT pay PMI no matter what your loan to value is. 
  3.  The ability to do a streamline refinance on a VA loan is a great sense of security, knowing you can refinance if rates drop without income qualifying and even more important no appraisal, this means if home values drop in your area you can take advantage of current market rates.
  4. 100 percent financing, With today’s struggling economy and banks tightening their lending criteria it is nice to know you can experience the American dream of owning a home with no money down.
  5. Another great component of the VA loan is the fact it’s an assumable loan, this can be great help when selling your house.

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Veterans living in North Carolina should use a VA loan

Sunday, January 10th, 2010

Of all the states in the country, North Carolina has the 4th largest population of active and retired military personnel.  The latest data indicates there are an estimated 120,000 active duty personnel living in North Carolina. at the nine military bases.

Military bases in North Carolina:

  • Pope Air Force Base – Fayetteville
  • Seymour Johnson Air Force Base – Goldsboro
  • Fort Bragg – Fayetteville
  • Simmons Army Field – Fayetteville
  • USCG Air Station – Elizabeth City
  • Camp Lejeune Marine Base – Jacksonville
  • Cherry Point Air Station – Havelock
  • New RIver Air Station – Jacksonville
  • Cherry Point Naval Air Depot – North of Havelock

In addition to the active duty, there are over 25,000 soldiers, marines, and airmen that serve in the National Guard or Reserve Forces!  Records show that most of these military personnel have served in Operation Iraqi Freedom (OIF) or Operating Enduring Freedom (OEF).

When these service members are ready to buy a home, it is important that they understand all of the benefits they are entitled to through the VA home loan program.  LowVARates specializes in assisting veterans and active duty members in applying for and becoming approved for a VA loan.

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Posted in VA Interests, VA Loan, VA Purchase | 1 Comment »

The New 2010 GFE

Sunday, December 27th, 2009

 

Well the time is upon us, 2010 is nearly here and with it we will see a myriad of changes in mortgage lending and the industry in general.  Most importantly of all these changes are imposed by nearly exclusively by “big brother”.  So only time will tell if they will indeed help the average consumer be more informed and help them to understand what fees they are paying for and whom them went to.  Right from the outset, let me say I don’t think the new GFE is easier to read and understand.  Furthermore, it is at least twice as long as it is now, and it  seems to me and many to be twice as hard to decipher.

Now with that said let me outline just a few of the “highlights” of what the proposed “improvements” are going to require, thanks Federal Government for sticking your nose in yet another industry that doesn’t need it.  They take effect on January 1, 2010.

The GFE provides the potential mortgage applicant with cost details associated with closing the loan.   GFEs have not been standardized and commonly they are different looking state to state and loan type to loan type.   For example in Texas on a VA loan it may not look identical to lets say a Conventional loan in California.  Even after 7 years in the mortgage industry some are still a jumbled mess.  Also GFEs have been just that, estimates, not an actual amount because it is nearly impossible to know what the actual charges and payoffs etc are going to be on a loan before the loan officer has the opportunity to see the “numbers”. 

That seems to be a prevailing factor, that the new GFEs be accurate, or more so.  Normally I would say initial GFE’s have been off by 10-15%.  The new rules will create a standardized, three-page GFE and require that the itemized list of estimated fees and charges be accurate. This is supposed to make it easier for borrowers to understand what charges are involved in their proposed loans.  It will allow for a very small variance in the charges.

These new rules also apply and attempt to standardize the HUD, commonly called the settlement statement.  The list of actual fees and charges the borrower has to pay. The new settlement statement or HUD also will be three pages long and will include a chart on the last page attempting to show the borrower to compare the estimate charges in the GFE with the actual charges paid. 

Well that is the short of it, certainly there is more involved but you get the idea and I hope it will be beneficial to everyone.

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Posted in General Veteran Information, Loan Processing, VA Loan, underwriting | 1 Comment »

VA Loan and the Specially Adapted Housing Program

Monday, December 14th, 2009

Aside from the well-known VA home loan program available to veterans, the VA also offers other home-related benefits to service men and women. One of these is the Specialty Adapted Housing Program, which was designed to provide grants to qualified service members with specific service-connected disabilities, for the purpose of constructing an adapted home or modifying an existing home to meet their adaptive needs. According to the VA, “the goal of the Specially Adapted Housing (SAH) Grant Program is to provide a barrier-free living environment that affords the veterans or service members a level of independent living he or she may not normally enjoy.”

Below are the two types of adaptive housing grants available to assist severely disabled veterans or service members, and some general information about them. The terms of eligibility and grant use differ slightly for each grant. For detailed information check out these links to publications by the VA or contact your local VA Regional Loan Center:

http://www.homeloans.va.gov/docs/part1_va_pamphlet_26_jrd_edits_doc_rev_11052009.pdf

http://www.homeloans.va.gov/docs/part2_va_pamphlet_26_jrd_edits_doc_rev_11052009.pdf

Specially Adapted Housing Grant -

Which veterans or service members are basically eligible for the grant?

The Specially Adapted Housing Grant is available to veterans or service members who are entitled to compensation for permanent and total service-connected disability due to:

· The loss, or loss of use, of both lower extremities such as to preclude locomotion without the aid of braces, crutches, canes, or a wheelchair.

· Blindness in both eyes having only light perception, plus loss or loss of use of one lower extremity.

· The loss, or loss of use, of one lower extremity together with: (1) residuals of organic disease or injury, or (2) the loss or loss of use of one upper extremity.

· The loss, or loss of use, of both upper extremities, so as to preclude use of the arms at or above the elbows.

· The permanent and total disability is due to a severe burn injury (as so determined).

How much specially adapted housing assistance can a veteran or service member receive?

· An eligible veteran or service member may receive a VA grant of not more than 50 percent of the cost of a specially adapted house, up to the aggregate maximum amount allowable by law. The current maximum grant amount allowable at the time of this publication is $63,780. This amount will be adjusted annually based on a cost-of-construction index. The first adjustment occurred October 1, 2009, and future adjustments will take place each October 1 thereafter. Any future adjustments will increase the grant amounts or leave them unchanged.

How may the grant be used?

An eligible veteran or service member has the option to use up to the full amount of the grant under any one of the following plans:

· Plan (1): The veteran or service member may elect to construct a home on land to be acquired for that purpose.

· Plan (2): The veteran or service member may build a home on land already owned if it is suitable for specially adapted housing.

· Plan (3): The veteran or service member may remodel an existing home if it can be made suitable for specially adapted housing.

· Plan (4): When the veteran or service member has already acquired a specially adapted home (without the assistance of a VA grant), the grant may be applied against the unpaid principal mortgage balance of the home.

Special Housing Adaptation Grant -

Which veterans or service members are basically eligible for the Special Housing Adaptations Grant?

Veterans or service members who are entitled to compensation for permanent and total service-connected disability due to:

· Blindness in both eyes with 5/200 visual acuity or less, or

· The anatomical loss or loss of use of both hands.

· The permanent and total disability is due to a severe burn injury (as so determined).

How much special housing adaptation assistance can a veteran or service member receive?

An eligible veteran or service member may receive a VA grant for the actual cost to adapt a house or for the appraised market value of necessary adapted features already in a house when it was purchased, up to the maximum grant amount allowable by law. The current maximum grant amount allowable at the time of this publication is $12,756. This amount will be adjusted annually based on a cost-of-construction index. The first adjustment occurred October 1, 2009, and future adjustments will take place each October 1 thereafter. Any future adjustments will increase the grant amounts or leave them unchanged.

How may the grant be used?

An eligible veteran or service member has the option to use up to the full amount of the grant under any one of the following plans:

· Plan (1). The veteran or service member may elect to construct a home on land to be acquired for that purpose.

· Plan (2). The veteran or service member may build a home on land already owned if it is suitable for specially adapted housing.

· Plan (3). The veteran or service member may remodel an existing home if it can be made suitable for specially adapted housing.

· Plan (4). When the veteran or service member has already acquired a specially adapted home (without the assistance of a VA grant), the grant may be applied against the unpaid principal mortgage balance of the home.

*Note that if a veteran or service member qualifies for both benefits, the law limits him/her to the use of the larger grant.

If you feel you may be eligible for one of these grants, contact the Specially Adapted Housing Agent at your local VA Regional Loan Center for more information.

If you are in need of help with your home loan, need a VA streamline, or a VA loan in any state including a Texas VA Loan we can help.

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Posted in General Veteran Information, VA Interests, VA Loan | No Comments »

Christmas Suprise Giveaway

Thursday, December 10th, 2009

LowVARates is providing up to $250 of Christmas presents for a fortunate military family.  To nominate a family, please submit a 200 word essay to PR@LowVARates.com stating why the military family should win the contest.

(Lehi, Utah, Dec. 10, 2009) – Christmas is just around the corner and the season of giving is sweeping through the nation.  As the famous carol states, “It’s the most wonderful time of the year.”

LowVARates is adding to the Christmas spirit this season by providing a military family with up to $250 of Christmas presents. 

Please submit a 200 word essay telling us why the military family should receive the prize.  Essays must be submitted by Dec. 22nd at midnight to enter the contest.  The goal of the giveaway is to help a military family going through tough times receive some good fortune.    

According to the Department of Defense, the U.S. military is deployed in over 150 countries with around 25% of its active duty soldiers serving in foreign countries.

President Obama just announced another 30,000 troops are deploying to Afghanistan in the next six months.  Many of the troops will spend Christmas and other holiday’s fighting for the freedoms we enjoy.

The holiday season and particularly Christmas can be a difficult time for the men and women of the U.S. Armed Forces and the families they leave behind.

“Many valiant men and women don’t get to spend Christmas with their loved ones,” Owner of LowVARates Eric Kandell said.  “Hopefully the giveaway can provide a deserving military family a Merry Christmas.”

LowVARates recently provided the Chesney family with a free Thanksgiving Dinner.  The husband Tim is deployed in Iraq and missed his first Thanksgiving with his wife and two daughters.

“The Thanksgiving dinner giveaway was such a great success that we decided we wanted to do another contest for Christmas,” Kandell said.

To enter the contest, please submit the following information to PR@LowVARates.com:

           1) Name

           2) Address

           3) Contact Information (Phone or Email)

           4) 200 Word Essay

           5) Name of the family you are entering in the contest

Individuals can nominate their own families or other military families.  We also encourage individuals to submit more then one family. 

The family must be associated or enlisted with the military or they will not qualify for the prize.  Once again, all entries must be submitted prior to December 22nd at midnight to enter the contest. 

 

CONTACT:

Craig Walton

Director of Public Relations

pr@lowvarates.com

Office:  801-341-7048

Cell:  801-824-1635

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Military Family Honored on Thanksgiving

Monday, November 30th, 2009
The Chesney Family, the mother Brandie and two children Ella & Amelia.

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

 

 

 

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VA loans: A Call to action

Monday, November 23rd, 2009

In the quickly changing landscape of mortgages VA loans stand alone. The VA backed mortgage is very advantageous for those who are able to take advantage of it. Worries about appraisals for refinances? Gone. Worries about help making payments in hard times? Gone. Stress over a down payment for your first home? Gone.

From the outset the VA has worked to make VA loans both affordable and smart. Many veterans may not have the requisite 15-20% for a down payment on a conventional loan. The home that they are buying may not fall within the guidelines for an FHA purchase. The VA mortgage fills this gap for America’s Veterans and allows a nice home to be purchased with 100% financing. Along with this purchase the VA has services available when times are tough and the mortgage payment is in jeopardy of not getting made. Perhaps the easiest of the programs is the streamline refinance, where without an appraisal the veteran can refinance the loan in to a lower rate or shorter term with no cash out of pocket for the refinance transaction.

By using a VA loan veterans can ensure an increased level of stability, increased cash flow from lower payments, and access to the lowest rates at any given time through the VA streamline program and VA loans are the same whether you are in need of a Texas VA Loan or a California VA Loan.

To help with your purchase or refinance transaction, contact LowVARates.com to see how you can get on the road to home ownership, and lower monthly payments.

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Posted in Loan Processing, VA Loan, VA Purchase, VA Refinance, VA Streamline Refinance, underwriting | No Comments »

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