When considering Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, VA and CHFA/VA Mortgages should be at the top of the list for Veterans. But unfortunately many Veterans do not take advantage of these Loan Products here in Connecticut. Therefore there is a need for us to make more of an effort to inform our Veterans of this valuable benefit that is available to them.

VA or CHFA/VA Mortgages are just what the name implies, these Loan Programs are meant for and only available for our Veterans. The only differences between a VA and CHFA/VA Mortgage is that VA Mortgages are funded by Lenders and Insured by VA. CHFA/VA Mortgages are Funded by CHFA at a below market interest rate, but Insured by VA. A Veteran can purchase a house with a VA Mortgage up to four times. CHFA/VA Mortgages are only for Veterans who are purchasing a house for the first time. VA Mortgages do not require any Downpayment, but the Veteran still has to come up with the Closing Costs, whether from his/her own money or Seller Paid Cost. CHFA/VA can be 100% Financed though a second loan (DAP). CHFA/VA Mortgages must also meet the Income and Property Limits that apply to all CHFA Loans.

Just like with the other Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, VA & CHFA/VA have requirements that have to be meant in order to qualify. Some of them are obvious, and some of them not so obvious.

Those who are eligible:

• Honorably discharged
• Widow/widower of eligible service member or spouse of an MIA or POW
  
•  Wartime service – a minimum of 90 days active duty
  
•  Peacetime periods – 181 days of continuous active duty
  
•  Actively in service or a valid VA Form DD214
  
•  Have certificate of eligibility

VA and CHFA/VA Mortgages are not available to Veterans who intend on purchasing a property with a Co-Borrower that they are not married to, unless the Co-Borrower is also a qualified Veteran.

VA and CHFA/VA Mortgages are such a huge benefit for our Veterans who are especially looking for Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, because of the following.

VA Mortgage benefits for a Veteran:

• No down payment
  
•  No PMI
  
•  Seller concessions allowed for up to 4% of the sales price
  
•  Loan amounts up to $417,000
  
•  Assumable mortgages

Just like not all Borrowers are not able to do Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, neither are all properties eligible for Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, and VA and CHFA/VA Mortgages are not an exception to this rule. VA and CHFA/VA Mortgages are only eligible for properties that Veterans are going to purchase as their primary residence, and they are limited to 1-4 Units Properties, and VA Approved Condos and PUDs.

The only exceptions to the primary occupancy rule is if the Veteran is on active duty, his or her spouse may occupy the property, therefore, certifying occupancy. Also in the case of single or married service members deployed from their permanent duty station, they are considered to be in a temporary duty status and are able to certify intent to occupy. In that case there is no need to have a spouse certify occupancy.

All of the Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut presently are all government insured Loan Programs, and as a result all these programs have an Upfront Funding Fee. On VA and CHFA/VA Mortgages the Upfront Funding Fee varies depending on the number of times the Veteran has used this Benefit. On a VA Mortgage the Upfront Fee can be rolled into the Loan, but on a CHFA/VA Mortgage the Upfront Fee cannot. If a Veteran does not have the money to pay the Upfront Fee on a CHFA/VA Mortgage, they can either have it included in Seller Paid Closing Costs, or borrow the Upfront Fee as part of a Downpayment and Closing Cost Assistance Loan (DAP). There exceptions to the Upfront Closing Fee.

A Veteran may be exempt from paying the VA Funding Fee for the following:

• Veterans receiving VA compensation for service connected disabilities that are at least 10% disabled.
  
•  Veteran’s who would be eligible to receive VA compensation for service connected disabilities if they did not receive retirement pay.
  
•  Surviving spouses of vets who either died in service or from service-connected disabilities.

In Conclusion Just as in the case with our other Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, VA & CHFA VA try to take steps to insure that our Veterans don’t get themselves over their head financially. The qualifying Debt-To-Income Ratio’s are much stricter for this 100% Finance Loan Program, and VA further requires that a worksheet be done to show that the Veteran will have residual income once the Mortgage is approved.

If you did not have the opportunity to have read my previous blog on Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, CHFA/FHA Mortgages, please follow the link.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, andConventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com