Mortgages Johnston County NC

VA Loans Left Out

The Congress and the Fed and Secretary Paulson all worked miracles to get a stimulus package passed in record time… they forgot one little thing, VETERANS!

Washington Report: VA Loans for Veterans Overlooked

On Capitol Hill, it’s known as the biggest goof-up relating to housing in years: Working with the White House, Congress passed a bipartisan $150 billion stimulus bill that raised mortgage limits for home buyers in high cost areas across the country.

But guess what? The stimulus increased loan maximums for Fannie Mae, Freddie Mac and the FHA to $729,750 from the previous $417,000, but totally forgot about a program that helps finance more than 11,000 homes a month: VA loans for veterans. ”

va loans

This is a fine time to say “Oooops!” If you are a veteran who wants information about qualifying for a new home – please let us help you. Not many people in this area are familiar with VA loans, because we are not located 15 minutes from base – but as “veterans” of this business, Steve and Eleanor totally understand VA loans and the paperwork that goes with them! (It’s a government program – trust me on this there’s a ton of paperwork!)

“We just blew it, we didn’t catch it,” said one committee staff member who is not authorized to speak publicly. So for now, the VA limit for 100% financing remains $417250. (which buys a beautiful home right here in the Carolinas!)

For more information on VA LOANS: Contact Steve and Eleanor Thorne, Corporate Investors Mortgage Group, 919-649-5058.

FHA Might Be The Ticket!

There are pros and cons of FHA financing – but it just got better for those of us in the Triangle because our minimum loan limit is $295,000.

An FHA loan is a loan insured against default by the Federal Housing Administration. So, in the event the loan should ever go into default, the FHA will pay the lender. In these times of higher default on mortgages, this makes FHA financing very attractive – and it’s one of the few loans that Wall Street is purchasing!

Almost anyone can get an FHA loan. There are no income limits, like many other first time home buyer programs. To qualify you need to meet certain debt to income ratios - and in general those ratios mean that you should have no more than 43% of your gross income going to monthly debt.

FHA does not include child care in this ratio – or insurance, or utility bills. They are pretty much just counting your housing payments, credit cards and car payments (and BOAT payments my husband says to remember those too!).

FHA requires borrowers to have a minimum credit score of at least 600. There are some circumstances where this score could be lower - and there are now MANY cases where the underwriter is looking for a higher score of 620, because Fannie Mae and Freddie Mac are going to STOP purchasing loans with scores lower than 620.

The qualifying “hurdle” for an FHA loan is that you have to be able to prove your income. We must have documented income for these loans, certainly self-employed people get FHA loans everyday – but we will need tax returns that verify your income.

So again – in the Triangle, if you need to borrow $295,000 or less – FHA might be the Ticket! Please contact Steve Thorne, Corporate Investors Mortgage Group, Inc to get Pre-qualified!