Veterans and service members sacrifice much of their civilian lives to serve our country, so programs such as the VA Home Loan program have been established to help our armed forces. Wisconsin service members and veterans are able to take advantage of the program that allows them to obtain a loan up to $417,000 without putting a cent down. The VA loan program is stacked with benefits that are specifically designed to help service members find the home of their dreams.

Saving for the upfront costs for a home is usually the biggest hurdle for both civilians and service members. Most service members have trouble building credit and saving for the large down payment required for a conventional loan, due to constant moves and deployments. The VA loan program has no credit requirements and offers the down payment as an option. In addition, lenders do not charge private mortgage insurance on the loan, only a VA funding fee to keep the program alive for the next generation of soldiers. The VA funding fee is only 2.15% of the total loan amount and can be rolled into the monthly payments.

The VA loan program also allows the use of borrowed or gifted funds. Conventional loans require an impeccable record of all monies used for the purpose of the home. Certain banks restrict conventional borrowers from taking gifts from family and friends. However, the VA loan allows monetary gifts; these gifts can be used for the down payment, the VA funding fee, or closing costs. Paying some of these fees initially, while not required, will result in a lower monthly payment.

Conventional loans often make it hard for a veteran to borrow because of the nature of a veteran’s occupation. Moreover, conventional loans create barriers for people who have no credit history or have had financial problems in the past. While bad credit is not encouraged, qualified VA lenders are willing to give veteran borrowers a little more wiggle room than conventional borrowers. Most VA lenders will require a credit score of 620, but everyone is encouraged to apply since loans with less credit have been made in the past.

Eligibility and Other Requirements for Wisconsin Veterans

The VA calculates a veteran’s income through either residual or debt to income ratio (DTI). DTI is calculated using the logic that the veteran's total debt should not exceed a certain percentage of the veteran's total income. The percentage cutoff usually falls around 41%.

Veterans will need to obtain a certificate of eligibility either through a lender or VA loan counselor. The certificate states that a veteran was discharged in good standing and served for the required 90 days on active duty during wartime or 181 days during peacetime or served at least six years in the Reserves or National Guard.

For more information on the VA Home Loan program, contact Dennis Herman or a VA approved lender today!

Matt Polsky is a blogger associated with VA Benefit Blog, a blog focused on providing veterans and service members with current news and information on the VA benefits they have earned through serving our country.

Milwaukee area VA lender:  Peter Cannon Home Mortgage Consultant Wells Fargo Home Mortgage | 16001 W Cleveland Ave | New Berlin, WI 53151 MAC N9810-011 NMLSR ID 400610 Tel (414) 224-4732 | Cell (414) 416-9194 | Fax (866) 944-7857 Peter.J.Cannon@wellsfargo.com www.wfhm.com/peter-cannon 

Feel free to add your local contact info to the comment section if you are a lender offering VA loans. 

June 2011

Is there a recovery on the horizon?  I have

 been in Real Estate only 7 years, so I have not been through a slump and total recovery period.  I have worked through one of the greatest increases in Real Estate sales history, which resulted in one of the most severe market corrections.

Based on market trends witnessed from 2004 to 2007, I can see a few glimmering hopes of a recovery, a shift from a buyer's market to a seller's market.  An economist may term a seller's market as a condition where listings out number buyers.  It is easy to define a buyer, or seller market, but what are the signs?  Here are a few details which made up the sellers market in 2004 to 2007. 

Properties often sold for more than list price. 

Properties sold in fewer than 90 days.

Properties received multiple offers.

All three of these conditions are resurfacing in the Milwaukee market today.  In 2011 I have submitted more than a dozen offers which had received multiple offers within the first 2 weeks, and sold for more than list price.  This is becoming a trend in more than one market area in Milwaukee and surrounding suburbs.  Many of these properties are REOs, which leads me to believe, they have reached the bottom of the market, and are now beginning a slow climb out of the cellar. 

This same trend is evident in homes offered by private sellers.  Many of them are receiving multiple offers within the first 2 weeks.  Since this trend began in May, I have not seen figures with actual sale prices, but I would suspect they are selling for prices, near, or above list price. 

This is good news for sellers, who have been waiting to see where the market would bottom out.  

Many of the REO properties in the Milwaukee area are offered with a 2 year home warrenty to owner occupants.  Details of this service vary from property to property, based on the company providing the warranty.  

http://www.linkedin.com/news?actionBar=&articleID=547607836&ids=0Tdz4Scz4MdjkIdzcUdP0SdPgRb3gNcj4Qcj0RdiMUej8UdPcVd3kId3AQdjwVejgR&aag=true&freq=weekly&trk=eml-tod-b-all-44

Here is a contractor, who offers Real Estate sign post installation with a discount price for multiple agents from the same office.   

http://aoreo.wordpress.com/2011/05/24/all-over-remodeling-and-real-estate-sign-post-installation/

Pricing:
Offices with 1-3 Agents registered         $35 per installation
Offices with 4 or more Agents registered        $30 per installation

I see a number of listings on the market offered only to owner occupants, City, and charitable organizations for the first 14 days, under the NSP program.  Does anyone know of a link showing the rules and regulations regarding this program?  I would like to know what incentives, if any the seller is receiving. 

It surprises me to think, we are supposed to be the experts in the field, but we know little about the function, goals, and success of the NSP program.  Other than a local city department, providing down payment assistance to first time home buyers, and news releases stating the federal government has released billions of dollars, I can find very little about the NSP program.

Knock, knock, whose there?  I don't think it is the asset manager. 

How many of you have seen this trend?  Submit an offer for an REO property, and wait.  Some offers have taken 6 weeks to receive an answer.  On the average it is taking 2-4 weeks to receive and reply.  Just wanted to know if this is an local problem in the Milwaukee area, or nation wide.  

Real Estate Sign Post Installation is offered by All Over Real Estate Sign Post Installation for local installation in the Milwaukee area.  Options are available.  

http://aoreo.wordpress.com/2011/05/24/all-over-remodeling-and-real-estate-sign-post-installation/

Serving the Greater Milwaukee Area.
Brown Deer,  Cudahy,  Fox Point,  Franklin,  Glendale,  Greendale,  Greenfield,  Hales Corners,  Milwaukee,  Oak Creek,  Shorewood,  South Milwaukee,  Wawautosa,  West Allis, Whitefish Bay,  Brookfield,  Butler,  Delafield,  Elm Grove,  Lannon,  Menomonee Falls,  Muskego,  New Berlin,  Pewaukee,  Sussex,  Waukesha,  St Francis

Here is a link to All Over Remodeling.  They provide serices to REO Brokers in the Greater Milwaukee area, from property clean out, re-key, lawn care, to painting and rehab.  They also provide Real Estate sign post installation, which is a good thing since most of the prices have gone up in the past few weeks.  

http://aoreo.wordpress.com/2011/05/24/ao-reo-services/

The National Association of Realtors board of directors has approved a $40-a-year dues increase to boost political activities, despite polls showing members overwhelmingly opposed it, and warnings from local association executives that a dues increase would accelerate membership declines.

Why is it, whenever it comes to political matters, they always tell us they know what is better for us, if we agree or not.  

http://www.inman.com/news/2011/05/16/nar-hike-dues-40

No matter what price range, or location you are searching for a home, condition is still a controlling factor.

I divide condition into three major groups, poor, average, and exceptional. This is true for every price range and location.

Homes is poor condition make up the majority of the market in the lower price range. Next the average home

s will be priced at market value for the area. Exceptional homes will be at the upper level of the price range.

Buyers searching in the lower price range will find the majority of homes in need of varying degrees of repair. These usually have few, if any updates. The major concerns will be foundation, roof, heating and cooling systems. Buyers generally will be faced with choosing between which repairs they are willing to take on. Most likely buyers will need a 203K or other remodeling loan in which repairs can be made after purchasing. Finding a lower priced home will require a great deal of research, and personal viewings before an acceptable property is located. It is not uncommon for buyers to spend 6 months or more viewing homes before locating an acceptable home. This problem is further complicated given the fact, many of the homes listed have few if any pictures to view on the Internet.

Average homes are usually not priced on the lower end of the market, but often present a better value after taking into account the cost of repairs on a lower price homes. Average priced homes often feature 1 or 2 desirable updates. There are 6 major updates, roof, kitchen, bath, finished basement, heating and A/C systems, and windows. Homes priced at market value are generally in good shape and well maintained. This is a wise consideration, often representing savings in the overall picture.

Exceptional homes are priced on the upper range of the market. These homes often provide 3 or more major

 updates, and are very well maintained. These usually offer features and upgrades not found in lower priced homes, such as decks, patios, oversized garages, baths, and kitchens. Searching is a more enjoyable experience based on the fact these homes most likely feature more pictures, and usually do not disappoint when viewed. Buyers usually find a home that meets, or exceeds their expectations within a short amount of time.