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Where Do VA Home Loans Come From?

June 26th, 2010

Whether refinancing or purchasing, many VA home loan borrowers don’t concern themselves with where their funding comes from. However, understanding the VA Loan Guaranty Program and who funds VA loans can be helpful to VA-eligible borrowers.

A VA home loan might also be considered a VA “guaranteed” home loan.  A certain amount of the mortgage loan is guaranteed by the federal government. The VA Loan Guaranty Service administers the home loan program within the Veterans Benefits Administration of the U.S. Department of Veterans Affairs. The money used to purchase or refinance homes doesn’t come from any of these government entities; rather, a VA loan is originated and funded by VA-approved private lenders such as banks, savings and loans or mortgage companies.

VA-eligible borrowers can get VA mortgages as part of their veterans’ benefits.  VA loans help veterans and active military personnel to purchase and keep homes in recognition of their service to our country. Homes purchases with VA financing must be occupied by the VA-eligible borrower.

Advantages to VA loans over conventional loans may include the following: 

o Equal opportunity loan 

o Zero money down

o Appraised value available to buyer

o Negotiable interest rate

o Funding fee may be financed

o Equal or lower closing costs compared to other loan programs

o No private mortgage insurance (PMI)

o Assumable mortgage

o No penalty for prepayment

o Construction inspection comes with builder warranty and VA assistance to work with builder on any problems that are revealed by inspection

o VA counseling for veteran mortgage holders in financial distress

Most veterans and active military personnel who are VA eligible find that VA home loans are the best option for home loans. VA home loan requirements can be generally easier to qualify for because credit and income standards are less strict than those of other programs. In most cases, no down payment is required for a VA home mortgage. The fact that no PMI is required with a veteran home loan saves VA-eligible borrowers substantial amounts of money each month.

The already great benefits associated with VA home loans are even better thanks to the new law made by the Veterans Benefits Improvement Act of 2008 passed in October of the same year.  The new law increases the VA loan guaranty to $729,750. And, for military personnel qualifying for a VA loan, up to100% of the appraised value of a home can now be refinanced. 

The new VA loan guidelines help private lenders determine how much to lend.  Lenders have to comply with VA income and credit standards; however, lenders can establish more conservative lending policies.

VA approved lenders must charge a lending fee as required by the Department of Veterans Affairs. The fee varies from zero to 3.3% of the loan total.  The funding fee can be worked into the loan so the borrower still pays nothing down.

Veterans who are 10% disabled, or greater, as a result of active military service are exempt from the fee.  Those not exempt can lower the fee by making a down payment.

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Miami Online Home Loans

June 26th, 2010

Living in Miami, Florida has so much to offer. Tropical weather, mild winters, lovely beaches, a thriving night life, a diverse community, and great food are some of what you can find in this bustling city. Home prices have been increasing sharply the last several years, therefore loan financing continues to play an important part in the local economy. We’ll examine some Miami Online Home Loans you can apply for today!

Adjustable Rate Mortgages – affording a new home is easier these days as variable rate mortgages or ARMs continue to grow in popularity. Interest rates on your ARM can be as much as one percent lower than what you would pay for a fixed rate loan. Rates are generally locked in for the first few years of a loan and then change as they are pegged to rates determined by the government.

Introductory Rate ARMs – Miami Online Home Loans are also available as Introductory Rate ARMs. Usually with these loans, the rate is extra low for a predetermined amount of time. This lets home buyers, like you, get more house for the money.

Balloon Mortgages – Balloon loans are short term mortgages that have some features of a fixed rate mortgage. Usually the rate is extra low for a period of time. At the end of that time, rates jump up and the loan is effectually “due” or you can refinance to lock in a lower rate.

Graduated Payment Mortgage – The GPM is another alternative to the conventional adjustable rate mortgage. Rates are fixed for one year and then rise at increments in subsequent years.

Fixed Rate Mortgages – The most popular and one of the most common Miami Online Home Loans. Rates are fixed throughout the term of the loan which is usually 15 or 30 years. Other term packages offered by some Miami lenders are for 20, 25, and even 40 years.

No matter which loan you choose, you can soon find yourself living in the Sunshine State in the bustling city of Miami. Look on the internet for your Miami Online Home Loans options today!

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What Is A Cheap Home Equity Loan?

June 21st, 2010

A cheap home equity loan is a loan that you can get when you use collateral, namely your home‘s equity. Your home‘s equity is the amount of money you have paid on your home verses what you still owe. Quite often the lender of the cheap home equity loan will use your home‘s equity to determine how much you can borrow. They will often base the rates of the loan on the amount you borrow.

If you take out less money then you are able to borrow this often saves you money in the long run. A cheap home equity loan is often available from local lenders and you should have little trouble getting information about one.

When you are looking locally you can always use your phone books yellow pages and search under the word loan or lender. If you feel like you do not have enough local lenders that are offering you what you are looking for in a cheap loan, you always have the choice to look online.

There are many lenders available online and you have the choice to ask them for all the information they can provide you about what they are offering in a cheap home equity loan. In most cases you can ask for quotes and compare each quote to see which lender is offering you the best possible loan option for you. When time is not on your side you may want to find an online lender rather then a local one. In most cases you will find that an online lender will be able to get you a loan within a much shorter period of time then a local lender.

What Other Information Is Available?

A cheap home equity loan is available on a very wide scale. Online lenders have become popular in today’s society and they are steadily on a rise. Online lending has become so convenient that many individuals will not even check local lenders. They often find the offers of online lenders to fit their needs more then that of local lenders. Interest rates are in many cases lower online and you do not have the need to leave your home to get quotes from the lender. You can get a lot of information from each online lender by e-mailing them and requesting the information.

When searching for a cheap home equity loan you may want to keep in mind that you are providing sensitive information and you may not want this information to go any further then the online lender. You are often able to request that your information is not disclosed to any other company or person. Security is often available online to protect your information. Quite often you will see a “paddle lock” symbol on the bottom of the page. This often indicates that the site is secure and you do not have to worry about your information being seen outside of the site.

With you using your home‘s equity you often are not charged high monthly payments, but you will still want to make sure that the payment will stay within your current budget. Information on a loan could take you a while to review, but in most cases you will find yourself saving more money when you review all of the information available about each lender.

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Counted for Mobile Home Financing? Get Approved Now

June 15th, 2010

Have you been trying to get traditional financing to purchase a new mobile home, only to be turned down by lender after lender? If so, perhaps you should try the more lenient lending environment of online mobile home loan servicers.

They were once viewed as just trailer homes that depreciated every year much like your automobile does. With improved design features – including sturdier flooring, premium windows and doors, and thick wall construction, the ones of modern times can be expected to last for years with proper upkeep and maintenance. Online lenders do not look at it so much as a depreciating asset – they see it as an investment in your future. That makes it easier than ever to find a lender who will say yes where others say no.

Online Mobile Home Loans

To apply for financing with these special online lenders, you will visit their secure website where you will find a link to an application. The application will ask general questions regarding your financial picture, including your past and present employment and income, as well as personal references who are familiar with your situation. You can be approved in as little as twenty-four hours for your new mobile home loan.

You can choose to have your new lender pay the dealer, or you can choose to have the proceeds of the loan deposited directly into your bank account, where you will have greater bargaining power when you close the deal. You may choose terms as long as thirty years for certain types of mobile homes. If you prefer to pay off the loan sooner, you can do so in as little as seven years.

Warranties And Add-Ons

When choosing your mobile home, you should carefully study any warranty plans that you are offered, whether the warranty is an add-on feature or included in the price of the home. Choose the warranty plan that charges you the least out-of-pocket for any defects during the first ten years. On the flip side, an ideal warranty will cover any manufacturing defect for a certain period of time, typically ten to fifteen years or more.

Take into account before you make a deal with the mobile home seller any appliances or upgrades that you want to have in your mobile home. Some features that may not be included are central air conditioning units, stove, refrigerator, washer/dryer, and under skirting. Be certain that the cost of moving the mobile home and setting it up at your location is included in the price of the home.

Tax Breaks

If you own the land that you will be placing it upon, you can have the property titled as real property in some states, once you have it set up properly upon a foundation. Although you will be now required to pay real estate taxes, those taxes are deductible on your income tax form. However, if your state does not allow you to consider your new mobile home as real property, find out whether you are required to pay tax on it as personal property.

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Getting Help with bad credit – government housing loans

June 5th, 2010

If bad credit hounds you like a nightmare you cannot seem to escape from, then the government has provided you with a home loan as a lifeline. Unlike ordinary loans, those with credit difficulties can avail them with fairly lower interest rates.

Two government agencies, the Federal Housing Administration (FHA) and Veteran Affairs (VA) offers bad credit government home loans.

Government Loans by FHA government home loan is offered to people engaged various professions. These provide by FHA is targeted at people having low income and those with bad credits, generally people who are not able to qualify for regular home loans.

Requiring only as low as 3 percent down payment, the FHA can be availed at much lower interest rates. The location of the house to be bought, however, dictates the amount of money that you can borrow with the assistance of the FHA.

How to determine eligibility

The requirements in the application of the FHA bad credit government are-

Location or addresses where you have been residing for the past 2 years

The name and address of your employer for two years together with your gross monthly salary

The last two year’s W2

You can avail the FHA loans at either variable interest rate as well as fixed. Only the payment Mortgage Insurance Premium (MIP) up front is what can be considered as its only disadvantage. For loans of 15 or 30 year, the FHA, the computed MIP is 1.5 percent of the amount to be borrowed, and one half percent of the annual renewal premium must be paid for the loan‘s life. Of course, each state or county has their own policies for making loans.

Bad Credit Government Home Loans by VA

The Veteran Affairs Department offers a loan that suits veterans perfectly. The aim of the loan is to aid in the acquisition of property by veterans. The risk to the lenders is minimized by the backing of the Veteran Affairs Department. The lender can then provide you with a loan with reduced interest rates.

The veterans can get up to one hundred percent the amount of the property using the VA bad credit government home loan. There is no need to pay for any mortgage insurance premiums or even down payments. Your veteran’s certificate must be provided, however, before availing the VA bad credit government home loans.

No matter which loan offered by the government to take, you should always remember that these credits are not given directly by the government. The government only acts as a guarantor for a loan when you are unable to pay the creditor.

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