Northern Virginia Home Buyer Quick reference guide for VA loans
Northern Virginia is blessed with highest per capital income and low unemployment. Our Real Estate market is unique than rest of the country. We do have great veterans presence in our area, who would like to access their rights and get a VA loan.
In yesterday's post, I provided some basic guidelines for the standard FHA loan and the benefits to the home buyer. In today's post, I am providing a quick reference to basic guidelines for VA loans and the associated benefits to home buyers. Feel free to call or email (or leave a comment) if you have any quesitons regarding any of the loans in this series. Tomorrow I will be discussing conventional loans. Here you go:
For your VA buyer with the right credentials, nothing beats a VA loan.
Program guidelines:
Loan-to-Value: 100%
Debt-to-Income Ratio: as high as 55%
Minimum Credit Score: 640+
VA Funding Fee (no monthly mortgage insurance):
1) 2.15% for first-time users (financed)
2) 3.30% for subsequent users
Reserves: None required
Bankruptcy: Need re-established credit
1) Chapter 7 – eligible 2 years from the discharge date
2) Chapter 13 – eligible 1 year from the filing with Trustee’s approval
Foreclosure / short sale: eligible three years from the foreclosure date or sale date.
Benefits to the buyer:
1) No down-payment requirement – 100% financing
2) higher debt-ratio allowances – as high as 55%
3) no reserve requirements
4) more flexible than conventional financing with regard to credit issues
5) Seller can pay up to 6% in closing costs
6) Lower payment than FHA since there is no monthly mortgage insurance
D. Jed Wunderli
Certified Mortgage Planner
Alterra Home Loans
702-812-1214
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