VA Loans – Cheaper if you make a Downpayment

August 25, 2009 by 1 Comment

There are GREAT VA benefits, but most Veterans we talk to never mention them to their loan officer!  That’s a shame, because there are many times when it might make sense to do a VA home loan as opposed to a Conventional or FHA loan for your mortgage program!

If a Veteran can  put a down payment on the home, the funding fee is reduced. For regular military, the funding fee on a 95% loan is only 1.5% and 1.25% on a 90% loan. Reserve members pay 1.75% & 1.5%, respectively.

There’s no MONTHLY fee – which is why it is cheaper than FHA or often times, Conventional PMI.

If you are considering purchasing a home in NC and you want to get pre-qualified, please call Steve and Eleanor Thorne 919-649-5058!  We have the LOWEST RATES!

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VA Loan Co-Signors

May 20, 2008 by 6 Comments

weddingVA mortgage loan guidelines recognize legally married spouses of qualified veterans as co-signors on VA loans. This means that we can include the spousal income to qualify for the loan, and that these loans can be fully guaranteed by the VA.  Simply being engaged means that you can get pre-qualified with the spousal income, but the closing must take place after we have evidence of the marriage.

The VA mortgage loan guidelines also allow for more than one eligible veteran(s) to purchase a home. If a married couple with more than one eligible veteran is involved, VA divides the entitlement charge equally between them, if possible. If two unmarried eligable veterans purchase property together the same rules apply and these loans can be fully guaranteed by the VA.

While the VA guidelines may allow for a non-veteran to co-sign for a mortgage loan, they will not fully guarantee the loan, and in our 25 years of lending, we’ve never seen one of these loans close. Again, the VA mortgage loan was designed to offer long-term financing to American veterans or their surviving spouses (provided they do not remarry).

Although it seems more confusing than it is, the federal government does not generally make direct loans under the act. The government simply guarantees loans made by ordinary mortgage lenders (descriptions of which appear in subsequent sections) after veterans make their own arrangements for the loans through normal financial circles. The Veterans Administration then appraises the property in question and, if satisfied with the risk involved, guarantees the lender against loss of principal if the buyer defaults.

In the case of divorce, the Veterans Administration has several choices. If a non-eligable spouse continues to occupy the property and if the payments are made in a timely fashion, no change to the loan will be made.  In this case, the military spouse will have their eligability for a mortgage re-instated once the loan is paid off and/or refinanced out of a VA loan.  If payments are missed, and the property is approaching foreclosure, the VA might choose to refund the loan and have the payments made directly to the Veteran’s Administration.

For more information about purchasing a home in Raleigh with VA Financing or buying a home in Cary as a Veteran, please contact Steve and Eleanor Thorne with Corporate Investors Mortgage Group in Cary, NC.  919-649-5058

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Time To Refinance Your VA Loan??

March 31, 2008 by 14 Comments

va mortgage loansThe Veteran’s Administration Provides you with Four Different Refinance Solutions

    Actually this headline is incorrect.  The VA does not “make” mortgage loans.  They set guidelines and approve lenders to originate VA loans – but the VA does not actually MAKE the VA HOME LOANS.
  • VA Streamline Refinance: Mortgage Lenders also refer to these as Interest Rate Reduction Loan (IRRL).  For refinancing this is possibly the veterans greatest mortgage tool. Qualified veterans can quickly refinance to a lower rate, switch from and adjustable rate to a fixed rate loan, or from a fixed rate to an adjustable rate loan.

A veteran does not have to re-qualify for a VA streamline and in most cases an appraisal in not required. Most importantly, there are rarely any out of pocket costs for the veteran.  So… you’re just lowering your monthly payment!  How cool is that?

  • VA Cash Out Refinance: For the veteran with equity in their home, a VA cash out may allow you to put some of that money to work as needed. You may be able to use these equity funds to to make costly home improvements, pay college tuition, or enjoy a cruise around the world. It is your choice.  Fortunately, in North Carolina most properties are continuing to appreciate and build equity.
  • VA Debt Consolidation: Credit card debt, car loans, and home equity lines of credit can all carry high interest rates and make it difficult to manage your monthly payments. Veterans can consolidate these expensive obligations and combine them into one low fixed rate loan with a VA debt consolidation refinance.
  • Conventional Loan To A VA Loan: Veterans who do not currently have a VA Mortgage loan, but meet the VA eligibility requirements, can refinance with a VA Mortgage loan. If this is the case, then you should be able to refinance your current conventional home loan into a VA loan and take advantage of the many options that the VA home loan offers.  With many of the Conventional guidelines changing and requiring “cream of the crop” credit - many Veterans are finding this to be a Great Option!

We have years of experience helping Veterans Refinance their homes!  For more information about VA Mortgage LOANS, contact Steve and Eleanor Thorne Mortgage Banker in Cary , 919-649-5058

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Va Loans and Co-Borrowers

March 31, 2008 by 7 Comments

va mortgage loans The marriied spouse of a military member or veteran can co-sign a VA loan. WHAT DOES THAT MEAN? In practical terms it means that if you are not married – and the other borrower is NOT a veteran, you will not be able to borrow the maximum allowable VA loan of $417,000.

Again, two unmarried military members are able to co-sign on a VA loan with full benefits. When a military member or veteran wants to bring an unrelated, non-military cosigner, the VA allows this with one major exception.

The VA Mortgage Loan guarantee is limited to the amount of the veteran’s interest in the property. Some companies won’t allow these types of “mixed” loans, so you are likely better off getting an FHA loan!

For more information about qualifying for a VA Mortgage Loan, please click here!

If you have questions about these and other homebuying options – contact Steve and Eleanor Thorne, Government Loan Experts at Corporate Investors Mortgage Group!

Call us at 919-649-5058 – we LOVE working with Veterans!

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