VA Mortgages .............. Overview

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

Last week I posted the first blog in this VA Loan series.  As I stated last week, in most cases I would start off by giving the highlights of the program as an introduction to the series of blogs that I plan to do, but in this case I start off by addressing the Condo Market first. My reason for doing this was because, a large number of Condo's came off the FHA Approved Condo List at the end of last month, making it more difficult for those who are looking to purchase a Condo to do so. VA like FHA has an Approved Condo List but right now it is very different than the FHA Approved Condo List, because VA is not going through the whole re-certification process like FHA is, and therefore will provide a big advantage to a Veteran looking to purchase a condo.

Having said that lets get into what I would normally have started the series with, an overview of the VA Mortgage Program.

VA Mortgage benefits for a Veteran:

  • 100% Financing - No down payment
  • No PMI or MIP
  • No Funding Fee - If Veteran has a service connected disability or a surviving spouse of a Veteran
  • Loan amounts up to $417,000 (see note below)
  • Assumable mortgages by another Veteran as well as a Non-Veteran.
  • Benefit can be used multiple times

Those who are eligible:

  • Honorably discharged from any of the Armed Force Branches.
  • Widow/widower of eligible service member or spouse of an MIA or POW
  • Wartime service - a minimum of 90 days active duty.  This includes Reserves and/or National Guard Members.
  • Peacetime periods - 181 days of continuous active duty
  • Actively Serving
  • VA Form DD214
  • Have Certificate of Eligibility (I will provide instruction on how to obtain a Certificate of Eligibility on a separate blog). 

VA Mortgages can also be combined with State Bonded Loan Programs like Connecticut Housing Finance (CHFA) here in Connecticut. If a Veteran is a First Time Homebuyer, they can do a CHFA/VA loan, in which they can combined all the advantages of a VA Mortgage with the below market interest rates that CHFA offers. CHFA also reduces their already low rate to Veterans by an additional .125%.

NOTE:  My friend Lenn Harley pointed out to me a website that VA publishes their Loan Limits by County on http://www.benefits.va.gov/homeloans/docs/2011_county_loan_limits.pdf  The reason why I used $417,000 as the Loan Limit is because right now most Investors, at least here in Connecticut, will not purchase loans on the Secondary Market (including VA Loans) that are over the Conventional (Conforming Loans) Loan Limit which is $417,000.  So even though VA will let a Veteran borrow over the Conventional Limits, if a Lender can not sell the Loan on the Secondary Market, it is highly unlikely that they will underwrite the loan.  Lenn thank you for pointing that out so that I would further explain it.

The next blog in this series I will go into more depth on the VA Funding Fee.

 

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Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional 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 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Lenn Harley 06/01/2011 07:30 AM
  2. Virginia Gardner 06/01/2011 01:13 PM
  3. Heather Littrell 06/02/2011 02:02 AM
Topic:
Mortgage / Finance
Location:
Connecticut
Groups:
Realtors®
Mortgages
Military Relocations
1st Time Buyers
Real Estate Rookie
Tags:
va mortgages in connecticut

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Rainer
364,837
J. A. Michail
Real Property Management of Sarasota & Manatee - Sarasota, FL
Real Property Management of Sarasota & M

Good advice for veterans! Thank you for sharing it!

Jun 01, 2011 07:32 AM #1
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

John thank you.

Jun 01, 2011 09:00 AM #2
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Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

George this is a good deal for anyone who qualifies.   I can always count on you to keep everyone updated on mortgage products.

Jun 01, 2011 11:48 AM #3
Rainmaker
627,599
Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

I enjoyed the read today, thank you for getting it out to us today.

 

Patricia/Seacoast NH & ME

Jun 01, 2011 12:17 PM #4
Rainmaker
1,649,405
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

George, this is an excellent reminder to blog about VA loans...they are such an incredible deal for our Vets to use...look forward to the next installment here...

Jun 01, 2011 12:18 PM #5
Rainmaker
506,773
John Elwell
CENTURY 21 Bill Nye Realty, Inc. - Zephyrhills, FL

Unfortunately I have run into several mortgage brokers who had no idea what the requirements were for VA products. And in the end, they made mistakes that cost my buyers money. They are supposedly the experts, yet they did not know their business. We as agents do not handle commercial properties if our specialty is residential sales. Mortgage brokers should either be experts on the products that they handle or they should step aside and let someone more knowledgeable handle the financing.

Jun 01, 2011 02:12 PM #6
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Judi K Barrett
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma - Idabel, OK
BA, Integrity Real Estate Services -IDABEL OK

George,

Just the post that needed to be written.. the va guaranteed mortgages have increased in percentages of total loans that my buyers have gotten over the past few years..   Nicely done!

Jun 01, 2011 03:32 PM #7
Rainer
126,716
Brian Doubleday
Brian Doubleday - IML RealEstate - Orange County, CA Broker - Ladera Ranch, CA
Ladera Ranch, Foothill Ranch, Lake Forest, Mission Viejo
This is a great post, VA loans are one of the most misunderstood parts of the mortgage business
Jun 01, 2011 04:40 PM #8
Rainmaker
1,308,795
Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566
Looks like you are going to have some good reblogs coming up!
Jun 01, 2011 08:35 PM #9
Rainer
244,946
Shay Campbell
Universal American Mortgage Company - Raleigh, NC
Raleigh, NC

George, VA loans has always been a favorite of mine.  In North Carolina, a veteran who has been honorable discharged in the past 25 years, is treated as a first time home buyer when doing a NCHFA loan.  Keep up the informative blogs.

Jun 02, 2011 12:56 AM #10
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Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

George, I haven't dealt with many people that use the VA program. Is it a one time only program or can a veteran have access to the program with any home purchase they make over their lifetime?

Jun 02, 2011 01:07 AM #11
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Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

George: Thanks for the education. I appreciate it! VA loans are indeed a great way to go!

Jun 02, 2011 01:17 AM #12
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Jennifer glad you found this information useful

Patricia you are welcome

Ginny, yes they are, and unfortunately this loan program does not get used as much as it should around here.

John, unfortunately many LO's shy away from this produce because they are not familiar with the documentation and how to go about putting it into process.  As a result many Veterans miss out on the benefit of using this program.

Judi I am glad to here that, it would be great if more Veterans everywhere were taking advantage of this Loan Program.

Brian, you are right, and I don't understand why, it is not a difficult Loan Program to do.

Cheryl, feel free to reblog as many as you like :)

Shay, that is an excellent side benefit.  I wish we had the same thing in our State.

Ed, I am going to get more into that in the next blog, but the quick answer is yes, a Veteran can use this program multiple times.

Paul I agree, and Veterans should be using it more than they do.

Jun 02, 2011 01:33 AM #13
Rainer
17,457
Zak Lovenson
Zorell Investments, Inc. - Thousand Oaks, CA

Thanks for the updated info.. Just make sure VA buyers ask for $$ towards closing costs instead of "repairs" on their offers.  We just received an offer from a VA buyer who wanted the seller to give them money to fix a structural wall.  I don't think any lenders will be okay with that so we are just giving them more money towards closing..

Jun 02, 2011 02:34 AM #14
Rainmaker
592,421
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

George,

I don't know how I missed this,

Excellent!

Bill

Jun 02, 2011 12:39 PM #15
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