Aloha,
Mahalo for stopping at my first but not last blog. I am briefly going to cover some VA Loan basics. I have heard several different facts from various Loan officers so i would just like to clarify the rules from what I interpret them to be.
Loan amounts in Honolulu County not requiring a downpayment are still $783,750. This should be good through 2010 but one never knows what next week shall bring. If purchasing a property greater then the $783,750 up to 1.5 million, then 25% of the difference would have to be brought in plus funding fee and any closing cost not credited by seller. Simply put as far as leverage the VA Loan is still the most amazing financial vehicle towards home ownership.
In addition to giving concessions towards closing costs a seller can contribute to the buyers current debt. In many cases this will help the buyer qualify for the loan. I just closed a loan for a young couple with 3 children. The husband was the only bread winner. They had a balance of $7,800 owed on a car with a monthly payment of $450. With that debt their ratios exceeded what the underwriters would be looking for. The seller agreed to give a concession towards the car and this Saturday we are attending the clients house warming party. The VA Loan is the only loan out there that allows for this feature.
That's all folks. Should you have any questions please feel free to contact me at valoanhero@gmail.com
or (808) 382-7444
Dave White
The " VA Loan Hero"
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