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Good news for our veterans and their mortgage...

By Joyce Windschitl Hercules

Mortgage and Lending with Prime Mortgage

August 31, 2007 03:53 AM

Thank you to all our veterans and our government appreciates you too. Ginnie Mae has announced that it is eliminating the cap on the size of VA loans that may be placed in Ginnie Mae pools effective September 1st. On any VA loan, the available guaranty and veteran cash downpayment must equal 25% of the purchase price or CRV, whichever is less. Accordingly, for loans over $417,000, the veteran must make a cash investment of 25% of the amount over $417,000. The maximum no downpayment VA loan remains $417,000. VA requirements remain the same.

This is good news for our veterans.

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Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Joyce. This has been in effect for years. Generally, VA buyers that I meet can do better for loans over $417,000 in the conventional market because of the high cost of the funding fee.

If they really wanted to help VA buyers, they would reduce the funding fee.

Aug 31, 2007 03:57 AM

unknown lender

Geneva, IL

Good point, Lenn, but I think the VA program is largely underutilized because most loan originators don't understand it. Joyce gave us a valuable post from that perspective ...

Furthermore, not ALL vets are well served by the conventional markets because many of them (the younger ones especially) have never established much credit ... or have some credit issues because of their social security numbers being widely "available" (identity theft is huge with servicemen and women) or because of frequent moves or deployments. VA takes all of this into consideration, so can be an excellent option for those just exiting the service (who also usually have no rental or housing history).

Thanks, Joyce for an informative post ... and the VA should consider lowering the funding fee ... that would be a huge leg up to homeownership for our largely underpaid and overworked military.

Aug 31, 2007 04:06 AM

Joyce Windschitl Hercules

Prime Mortgage - Chanhassen, MN

MN, FL, WI & CO Mortgage Consultant

I agree that lowering the funding fee would be nice.

However, this is new as of August 27, 2007. If you or anyone would like me to send you a copy of the announcement I would be happy to forward it to you.

Aug 31, 2007 04:09 AM