Products: VA Loans
Thank you so much for being so easy to work with! Also, I can't thank you enough for being so understanding of the military schedule. It wasn't easy at times with me being away, but your team was absolutely wonderful and so easy to work with. I can't say enough positive things. Thank you so much for being so helpful and answering the thousands of questions I/we had. Your team did an amazing job! I couldn't have asked for better service!
C. and A. Collins, USMC, Hampstead, NC
Many of our VA mortgages are concentrated in areas such as Jacksonville, NC – home to the Camp Lejeune Marine Base and the New River Air Station, Wilmington, NC – a consistently high ranking place to live in the US, & Hampstead, NC – a coastal town conveniently located between Jacksonville and Wilmington. VA loans are available to current military or qualifying veterans of the US Military to purchase homes with 100% financing at fixed or adjustable mortgage rates. We are here to help military families purchase a primary residence with a very easy process. Call us for the first step in purchasing a home using your VA eligibility - Obtaining a VA preapproval. Once you are preapproved for a VA mortgage, you can then view homes with confidence, knowing what you qualify for and what you are comfortable with in payment.
Paying Discount Points and Origination Fees on VA Mortgages:
Often Veterans will pay an origination fee and discount fee in their closing costs when purchasing or refinancing with a VA mortgage. Very often it is not a good idea to pay such fees if the borrower expects to have the mortgage for 5 years or less. Especially on fixed rate mortgages, it will often make more sense to pay a little higher rate and less fees. If a Veteran expects to sell their home within 5 years because of a relocation or a move up, one shouldn’t pay extra points that gives benefits further down the road. We will explain the options of a low cost or no cost VA mortgage to the Veteran. Veterans, along with all borrowers, deserve a mortgage that fits their needs and that is what we offer.
Seller paid closing costs on a VA mortgage:
On VA loans, the seller is allowed to pay up to 4% of the sales price towards allowable items for the Veteran. In order for costs to be paid by the seller, the total amount of costs paid by the seller must be mentioned in the purchase contract. Allowable costs which can be paid by the seller for the buyer on a VA mortgage include:
-All closing costs including items such as lender fees, appraisal, attorney, home inspection, recording fees, pest inspection, etc.
-Pre-paid items such as interim or daily interest, 1st year premium for insurances, reserves for escrows
-VA Funding fee
-Paying off Veteran’s debts to qualify
Because a VA loan will finance 100% of the sales price and costs can be paid by the seller, a Veteran can purchase a home with very little or no money brought to closing. If the Veteran, buyer’s agent, and our team are able to coordinate the numbers prior to final contract, the Veteran can maximize their VA mortgage to their benefit.
VA Funding Fee
For VA loans, unless exempt, there is a funding or guarantee fee which can be financed over the base loan amount. VA loans have the benefit of having no annual pmi which keeps the monthly payment lower than other types of loans over 80% of the price.
VA Funding Fee Explanations
Advantages of a VA 5/1 ARM
Request for Determination of Loan Guaranty Eligibility – Unmarried Surviving Spouses Form 26-1817
2011 VA Loan Limits List - Effective January 1, 2011
VA loans look more at Residual Income than debt to income ratios. Residual income is how much is left after a borrower’s expenses and taxes and the general calculation is figured as Gross monthly income – (proposed mortgage payment with taxes and insurance + monthly utilities + income taxes from the income chart + monthly debts including loans, credit cards, etc) = Residual Income. So when an underwriter or underwriting system is looking at approving a Veteran, the residual income and size of the family are looked at as much or more so than the debt to income ratio. VA does not want a Veteran getting a loan where they do not have enough money left over to meet living expenses.
VA Jumbo Mortgage Advantages
Several attractive Veterans Administration (VA) loan programs are available. PrimeLending is experienced in working with VA loans for the benefit of a range of qualifying applicants.
These programs offer substantial advantages for veterans and their families. Programs include the refinancing of existing VA loans, refinancing of non-VA loans, purchase loans for a primary residence, and Energy Efficient Mortgages for a primary residence. Benefits include:
up to 100% financing for purchase loans or a refinancing of a VA loan (called a Streamlined Refinance or IRRRL)
up to 90% loan-to-value is available to refinance a non-VA loan
30 year fixed rate or adjustable rate loans
credit scores as low as 620
available to veterans and their spouses
applies to 1-4 family residential properties, VA- or FHA-approved condos, or townhomes
loans of up to $417,000
borrower may own up to 4 properties, including the property being financed
The refinancing of a VA loan, the IRRRL, allows closing costs to be rolled into the new loan. Other features include:
second liens can be resubordinated
low VA Funding Fee (VAFF) of .5% of the loan
Veterans on disability may get the fee waived
the property can be an investment or second home
conversion from a fixed-rate to an adjustable rate (ARM), and vice versa
Other benefits and requirements apply, and programs can change. Russell Smith keeps abreast of these guidelines and can find out quickly if a VA program is to your advantage. Call for more information, or click here to send an inquiry.