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

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.