Friday, March 11, 2016

More VA Loan Info

A VA loan is limited to an Owner occupied borrower, who must be a Veteran to  have a loan.  The link to the website is here  for VA loan administration.

Some quick Highlights on a  VA loan are :

·       Loan to value  allowed is 100 % for  Purchase, or cash out or interest rate reduction Refinance loan  (IRRRL)
·       VA loans  have a  one-time funding fee    with no monthly mortgage insurance
·       VA will finance a Manufactured home , Single family, PUD, Condo and Multi units for property types.
·       VA credit rules are Generally  less restrictive for seasoning after a serious credit event ..   Chapter 7 BK seasoning is 2 years  and Chapter 13 BK is 12 months  and Foreclosures /Short sale is 2 years
·       Cash  Reserves for PITI Payment :  for one unit purchase is NONE.  For a 2-4 unit purchase  - if not using Rental income to qualify  then no extra reserves required;  if they are  buying  multiple  unit, AND using rental income to qualify.. then the Veteran needs 6 months Reserves.
·       The VA itself must approve any assumption of a mortgage.   
·       Interested parties  like an Real Estate Agent, or Seller can contribute  up to 4 % towards buyer’s closing costs or prepaid reserve account.  Some Consumer Debt Can be  paid off with these contributions to help a Veteran Qualify for financing.  

 VA Loan limits   range from 417,000 in WA State to 540,500 for select counties  for a one unit primary residence home-. Multi units follow their own  loan size limit …
·       Property type, loan amount, Credit score and Propose  of  loan can  impact  if you can or cannot do a transaction.   

Today's blog courtesy of Cheryl Taylor, American Pacific Mortgage,

Happy Investing!

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