Home Loans. Mortgage for veterans and militaries


Abstract, 2014

13 Pages


Excerpt


Buy or Refinance a Home without down Payments

Are you are veteran? Are you worried of where you can get refinancing to get the home of your dreams? Well, worry no more. VA loan is the appropriate package for any veteran and military. It is tailored to ensure that cater for VA mortgage Loan as well as Military VA loans. The better part about the loan is that, the repayment is very much friendly. The rates are all low; the terms are favorable to all those who desire it, and lastly, zero down payment.

0$ DOWN PAYMENT UP TO THE VA LIMIT

Never say die! It is now clear that Veterans and Military can have a life that they desire. They can live in homes of choice and locations of their choice. This is courtesy to the program that is well made to take care of their needs. The VA mortgage loans and the military VA loans requires 0$ down payment. What much better would be realizable? They enjoy benefits that cannot be advanced to any other ordinary citizen from any financial institution. Default of pay or lack of pay is next to impossible for them because the repayment is fair and tailored to meet their financial muscles.

Important to note though, not all of the veterans are qualified to get the VA home loans. The veterans have to meet the criteria set forth by the department of Veterans and then they get issued with it upon cutting then minimum threshold. Upon qualifying, the loan is issued by private lenders. The requirements of the loan are as elaborates below. The veterans and the military should avail the following:

1. The residential address for the place they have lived for the past two years
2. The employers and their addresses for the past two years of their work
3. Their social security number
4. The gross payments supported with W2 and recent check stabs for the past two years
5. All the account numbers that they hold and the specific banks with the proper details of the exact names, monthly payments and monthly repayments.
6. Those who have their own business will need to proof compliance to taxation by offering tax returns, current income statement and finally the balance sheet of the company.
7. Finally, all those who own a property and would wish to benefit of this loan, after application they are to get the property appraised and pay for credit report.

Types

As always, are available to ensure that you enjoy every bit of getting a loan. May it be the Veteran VA mortgage loan, VA home loan, military VA loan? It is best that the decision you make will not be worthy regrets in days to come. That is our ultimate joy. Never worry that it’s your first time, we know that you deserve information to be at par with those with knowledge.

Crucial to note is the considerations made before issuing the loan. It is therefore imperative that all those who wish to apply know so that, they do not get offended after realizing they are not qualified at late stages. Those who qualify are the military personnel who have served for a period of not less than 90 days during a time of war, or a period of not less than 181 days during a peaceful period or not less than six years as a National Guard. Those who served in the peaceful period, the days given previously are to be continuous service without any break.

The law indicates that for the veterans to qualify, they should have served the military at least for two years if you joined after 7 September 1980. It is likewise for an officer who begun work after October 16, 1981.

Guidelines to follow:

1. The debt-income-ratios are the best solutions for military and veterans who wish to obtain news homes. They should make calculations to know what VA loan mortgage they can manage.
2. Finally, it is important to note that, the loan may not be approved. It is therefore advisable that the ones who desire to have house seek preapproval; before looking for one. Once it is approved, it gives them assurance and confidence while looking for the home of their choice. It is also best for those who sell. They get the assurance that the buyers are serious with the offer and that they mean their word.

Debt Ratios

It is a directive that before a loan is issued the debt ratio of either the applicant or that of the spouse is able to meet the expenses associated with owning a home.

PAYMENT

The payment of the debt is fixed and it is compared against income which is said to be effective. The debt ratio which is acceptable for that particular case is equal or less than 41%.It is however important to note that there are exceptional conditions which allow an individual with a debt ratio of more than this percentage to be accorded an opportunity. The calculations are done on the basis of adding up the total mortgage payment (principal and interest, escrow deposits for taxes, hazard insurance, homeowners' dues, etc.) and all recurring monthly revolving and installment debt (car loans, personal loans, student loans, credit cards, etc.). Then, take that amount and divide it by the gross monthly income.

VA Refinance Loans

This is a loan program me which has been tailored to finance those people who previously had another form of financing. It can be opted for because of various reasons. Firstly, it can be an option of consolidating other forms of financing which are expensive to service. Secondly, it can be a means of financing funding education. Thirdly, it can be as a result of making improvements in a home. Finally, it can be used for other purposes that are well highlighted at VAloan.com. It is made to have different categories from which a choice is made. The following are the available choices:

- VA Cash-out Refinance Loans
- Interest Rate Reduction Refinance Loans
- Streamline Refinance Loans

VA Cash-out Refinance Loans

This is the first option. The re-financing is done to Veterans and military who own homes. It is usually valid for those of them who aspire to own their own private residences. The good thing with either of the loan is that it does not require the owner of the home to have lived in it for a given period of time, or for them to have had a loan for a given period of time. The major requirement is that the home which is used to refinance is equally fit in the equity to refinance. The loan is usually refinanced up to 100% of the appraised home amount. The amount in question for refinancing can include the closing costs if they will be covered within the appraised amount.

Interest Rate Reduction Refinance Loans

This is the second option of refinancing which is open to those who were servicing their previous loans subject to eligibility requirements. This is a loan that is clearly meant to for lowering the rates that are previously being serviced. That is the concept of reducing the amount of money which will be paid at the end of the day. It is also a strategy which is used to ensure that the repayment being made periodically is minimal compared to the one the owner of the home is currently servicing.

VA Streamline Refinance Program

Under this is where the interest rate reduction refinance loans were realized. This is where those who previously service a VA mortgage are able to reduce the interest rate without getting into their pockets. That is the reason it is also known as streamline refinance or a VA to VA loan.

The essentials of VA stream line Loan

1. It is notable that once the deal goes through, there are no refunds.
2. Assumptions are forbidden
3. Unlike other forms of finance, there is no need for appraisal or any type of report is it the termite report or credit report. The mortgage though should have been paid as agreed in the past 12 months and must be up to date at the date of financing.
4. If there is any lien, it should be subordinate to VA loan.
5. The loan gives a provision to include all other costs to the new loan to avoid getting money out of personal pocket. The interest rate is made with that particular concept in consideration.

VA Loan Program

Fixed VA Loan Repayment System

This is accredited to be one of the best ways for owning a dream especially for those who are employed. The better part of it is that they are able to do the calculations of the debt-income ratios in order to know the option which is best for them. The option which is best for them is the one which allows for them to be in a position to cater for the expenses that keep rising.

Truth is told; selling or buying a dream home can be difficult for an employee. Would you imagine saving for more than 20 years to get the home of choice. That is a long period! Not only that, it is next to impossible to save for that long because, idle money will never meet emergencies and get used up. The best part of the VA mortgages for the Veterans and Military is that they are extended for years regarding the mortgage and them agreement that is reached at by the client and the private lender.

The fixed form of repayment becomes the best because; the owner of the loan will know the exact amount that they will part with at the end of each agreed fixed date in the long duration up to 30 or more years depending on nature of the agreement. That way, it is possible to budget for income and live in a dream house as early or as young as one wishes.

The use of ratios in determining what kind of a dream house an individual wishes to live in is a financial requirement which is meant to ensure that the family to the veteran lives well even after acquiring the home. This is not the only criterion which is set in determining who qualifies for the loan. There are other things which are always observed. They include the credibility and credit worth history of the individual in need of a loan.

A summary of what is needed to qualify for the VA Loan

- The credit history should be clean.
- The history of credit should show that you used the money well and in the right way.
- To have the lowest possible debts from other avenues.
- Ensure that you are employed permanently or for the long run.
- Have liquid assets or the assets which equated to ready cash.
- Should have enjoyed the benefits of the military.

Partnership in bettering the debt-Income-Ratio

It is imperative to note that a partner is the one who can be legally indentified. As to whether one can use a person they are aspiring to marry in days to come as their co-borrower? That can never work. There is no legal evidence that the two are partners or if they will ever be in the future. This case is much applicable between a man and a lady. Either of them may be a veteran and may not qualify to get a loan. Some think to get their future wife and husband to cover them, but that is totally impossible. It is not until they are married and have the evidence of the marriage certificates can they use such a procedure.

However, there is an exception to all this. The exception indicates that, if at all the loan has to be issued to the veteran; it has to be limited to the interest the total amount or property of which s/he owns.

Are the benefits of the Veterans enjoyable by either the Children or their spouses on their absence?

It is imperative to note that, the benefits that were not enjoyed by a veteran cannot be enjoyed by the children under whatever circumstances. There are no debates about that, because that is how it has been. The veteran may likely not be available because of death or going missing on the online of work or duty. The spouses too are not allowed; though there are different circumstances which allow them to enjoy the benefits. The following are the exemptions:

1. If the veteran died as a result of service or related factors.
2. If the Veteran when missing in Action for a period when in line of duty
3. Finally, if the veteran a prisoner of war for 90 or more days

VA ARM (Adjustable Rate Mortgage)

What about it?

Just like loans, VA ARM is loan in form of a mortgage which has a lifetime which is agreed between the parties involved. This is the mortgage that is preferred by most of the veterans who want to have their homes of dreams financed. They love it because it is fair enough to consider their plight in increasing or minimizing the interest rate of payment on a yearly basis.

Further, it is also good to know that ARM has two branches. The very first branch is traditional adjustable rate mortgage. This is the most common. The interest rate can go to a maximum of 1% in year and a maximum of 5% on it lifetime. The adjustment is usually applicable after the first one year because a fixed rate is usually applied on the mortgage initially.

There are millions of advantages to using this option of ARM. The most central of all the advantages is that it reduces the cost of operation. The cost is usually brought down because the veterans are able to negotiate on the closing costs so that they are brought down as much as possible. It is also important to note is that the veteran can negotiate the interest rate of payment with the lender. Well, it is also fine to note that, it is not compulsory for those who own such kinds of loans to pay monthly insurance premiums. The better part of the mortgage type is that there are no penalties for delayed payment. What a better offer would anyone be in need of!

[...]

Excerpt out of 13 pages

Details

Title
Home Loans. Mortgage for veterans and militaries
Author
Year
2014
Pages
13
Catalog Number
V284074
ISBN (eBook)
9783656845355
ISBN (Book)
9783656845362
File size
500 KB
Language
English
Notes
None
Keywords
home, loans, mortgage
Quote paper
Orders Pap (Author), 2014, Home Loans. Mortgage for veterans and militaries, Munich, GRIN Verlag, https://www.grin.com/document/284074

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