Over the past few months, as the credit crunch has deepened, lenders have become increasingly strict with VA home loans. Instead of sticking to the VA guidelines, lenders are now implementing their own policies, and we aren’t happy about it. Gone are the days when no credit is needed. Gone are the days when an appraisal is not necessary for a VA streamline. Gone are the days when service to our country is the major prerequisite for a VA loan.
Now, to make matters even worse, lenders are pulling the rug out from under the nation’s veterans. Recently, AME Financial Corp decided that not funding loans already closed by veterans was in their best interest. Yes, that is correct. Loans that have CLOSED but not FUNDED will not be funded by AME. This means that Vets are left in a lurch on their VA loans. The locks that were guaranteed, are no longer valid. All time low rates are lost due to ineptitude on the part of the lender. A press release can be found here.
What does this mean for the everyday veteran?
It means that taking advantage of all time low rates just got that much more difficult. Sadly this sort of behavior is not actually all that uncommon of banks that are ready to implode. This website: ml-implode.com tallies a running list of failed banks and do not be surprised when AME becomes the next.
What you can do.
Start the process now to take advantage of historically low rates. We may never again see fixed rates below 5%. Take advantage before further tightening occurs. Contact Low VA Rates as soon as possible to get started. We can help you through the process quickly in order to avoid all the new changes and new policies that are coming. The Streamline loan process takes about 5 weeks start to finish and can save you hundreds each month. You can even forgo 1-2 mortgage payments with no penalty. Every penny saved is a penny earned and, with the holidays coming up, It’s time to earn all the pennies we can! (yes, preferably more than pennies, but you get what I’m saying.)