VA Eligibility/Guaranty mortgage

Anonymous · ‎07-31-2007

Hi - We just rec'd notice that my husband is eligible for VA mortgage, 36,000 guaranty. I am looking to refi my mortgage - which is in my name now - we are wanting to add him to mortgage so would this be a purchase/refi for him? Can we go to just about any lender? Also, what does the 36,000 do? Are rates better for VA loans?

He is retired USAF/Civil Service (medical retirement), and had bankruptcy in 2002, his fico 650's approx. my scores are 650 (ex, eq) and tu 684. My dti ratio is better than his at this time - are the qualifications for VA loans eased any?

thanks - Lynn

Anonymous · ‎07-31-2007

I think of a VA loan like having a co-signer.

Down side is the 2 point org fee. -

As you are already in the house and have decent scores- prob not the best option.

The Qualification on a VA loan a generaly a bit easier than a conv loan.

A GOOD broker should be able to better assist you.

Anonymous · ‎07-31-2007

Unless the rules have changed...it has been several years since we used a VA loan...but the VA waived the origination fee if the eligible veteran had a service conected disability and was receiving a disability payment. My wife has a 40% disability and we got the 2% origination fee waived. One downside of the VA is I found you pay slightly ligher interest rates...not much, but a little higher. Also, the VA I believe requires the borrower to open an escrow account. Some people like escrow accounts as they make for automatic saving for insurance and taxes. I prefer to set aside money on my own and draw interest myself instead of letting the bank sit on my money in an escrow account.

Contact your local VA office for more information. You can probably get most general information from the VA website. One thing you will need prior to shopping for a loan and house (the VA doesn't write loans, they just guarantee what would be the downpayment) is a certfificate of eligibility from the VA. To get the Certificate of Eligibility you will need a copy of the veterans DD-214 aka separation paper, discharge paper, etc. as proof of eligible military service. This is all covered in one of the many booklets the US Govt likes to print.

Message Edited by Jasper320 on 07-31-2007 09:19 PM

Anonymous · ‎08-01-2007

Va loan has better rate for people with fair credit because as exp;ained as lender Va loaNS HAS THEIR OWN RATINGS/ So with your credit score it is better to have Va loan/ If your get a letter about these 36 grants it means that you are already eligible for this/ And certificate of eligibility may this letter. 36 grants is 25 % of the loan amount equial 140000. By the you dont have to put downpayment but you have to pay fo closing fees / You cant include them in the loan. This a good site sitehttp://www1.va.gov/opa/IS1/5.asp#Closing www.valoan. com You can find useful information here I have a question where you can see official interest rate for Va loan. I found on valoan.com but they are commercial organisation. I want to show it to my lender because her rate and rate on the Va loan is little different. Thanks a lot

Anonymous · ‎08-02-2007

The 2% origination everyone is referring to is actually the funding fee required by VA. It is actually 2.25% and is used because VA loans are a great solution. The mortgage is guaranteed by the VA and offers no mortgage insurance with rates that are great when you have little to no equity. You can in deed see the funding fee reduced or waived if there is a disability attached to the eligibility of the veteran. Rates on VA loans aren't credit score driven so don't be concerned about that aspect. Debt to income ratios will be and also your credit past for the last 12 months. If you don't have any outstanding collections or judgements you are fine as well. If you have filed a BK7 it needs to be 2 years from discharge as well. Good luck!

Message Edited by Raine on 08-06-2007 11:58 AM

Anonymous · ‎08-03-2007

Hi - Thanks for posting to my question. You also posted to my other question on refinancing and suggested FHA loan. My husband does have a partial (or full - hard to determine depending on which government agency we are dealing with - he was USAF/Civil Service - but he does receive payments monthly from VA) disability which caused him to leave the reserve. Would it be better to go VA? What is the best way to find a good mortgage broker. The company I have the house financed with at this time has a program if you refinance with them, the cost is $375-I don't know if they do VA/FHA or not. Also, my husband is not on my current mortgage.

Thanks for all your input! Lynn

Anonymous · ‎08-03-2007

You will want to see what the funding fee comes back as and that will only be done once the certificate of eligibility is received. You know how the government works. Thought it is not like you have to make a decision on FHA or VA until the appraisal is done which you can wait until you get this information back to make the right choice. As far as the positives and negatives of each of the loans. Here is a snapshot~ FHA , financed MIP 1.5%, and .0005% monthly mortgage insruance (but only about $65 on your loan. Rates are a tad bit stronger on FHA then VA because it is backed by HUD. VA, typically 2.25% funding fee (unless there is a reduction or elimination due to disability). No monthly mortgage insurance, yet the rate may or may not be .125% or so higher then FHA. As for fees, well that is a different game. I can structure a loan for a client where there are no fees (meaning they aren't even wrapped into your loan amount). It is what we do with premium pricing your rate to pay those fees for you, and is very easy on an FHA and VA loan. Where are you located? It isn't without reason that we could help make sure you were taken care of, and potentially even do it for you.

Anonymous · ‎08-03-2007

Hi - We are in Indianapolis, IN. What type of servicese do you offer.

Anonymous · ‎08-11-2007

There is a great article on the comparison of 3 loans. VA, FHA and conventional. Take a look at it at: http://www.valoans.com/monthlynewsletter.cfm

Anonymous · ‎08-12-2007

Interesting news letter-

You have a huge mistake on the calculations.
The total on the conv is off $800

That all by itself is enough to flag.