The Veteran Guide to Home Ownership

By
Mortgage and Lending with Absolute Home Mortgage Corp

Each Veteran deserves an ez-pass to obtain home ownership in the United States of America! There are plenty of online resources that are creditable, but none of them can explain the home buying process. Here are three common questions all home owners have. What are the lending requirements? How much can I afford? How much money do I need?? Here are three common problems. The VA.GOV website is two hard to navigate through with so much condensed content, other websites ask you to fill out data and they transfer it to some in another state, and local banks don't hire underwriters at the local branches. Please consider this guide as a strong resource when preparing for home ownership in any localized market place!

Being ready to apply for home credit requires having an established credit history, a savings pattern, and work history. Credit history should be clean of delinquencies, collection accounts, and judgments. Regardless of the circumstances I will always recommend paying past collections prior to applying for mortgage credit as your application should exemplify responsible efforts to pay all creditors to gain the motivation from underwriting to grant the ez-pass for approval. Credit score requirements are at 640 and yes there are lending opportunities at lower scores. Those opportunities offer higher interest rates and costs. When borrowing the largest amount of money ever consider getting the best terms rather than rushing to buy.

 

Establishing a monthly housing budget will help you gauge on a desired housing market sector as each can vary the cost of living (taxes). There are debt-to-income ratios restrictions for VA loans as a portion of income must remain for living expenses. The basis of calculations include adding all revolving unsecured/secured credit(student loans, credit cards, car payments) and dividing by the monthly gross income. For example, if the total of liabilities is $1500 per month and salary is $5000 per month the debt-to-income ratio without the added proposed housing payment is 30%. The remaining allowable proposed housing payment is 11% of the $5000 per year or $550.00 per month. VA limits the housing debt-to-income ratio to 41% but allows underwriting to exceed this number if compensating factors exist (additional savings, strong credit, and work history) To calculate your debt-to-income ratios accurately you should consult with a licensed mortgage professional.

 

 

 Closing costs vary on each individual home and market place. For example, in Pennsylvania transfer tax varies by County. In Philadelphia County the buyer is responsible for 2% transfer tax and in Bucks County only 1%. Also, property taxes are collected at different times so that will change the amount of required reserves the lender requires to hold back. For all VA and FHA loans escrows (taxes and insurance) must be paid for by the lender. There is no exception for this rule/requirement and additional down payment will not influence any change. To offset closing costs the seller and lender can grant credits. The seller can grant up to 4% of the sales price proceeds towards the closing costs. The lender can give credits from the premium being paid from the rate. All of my personal VA applicants get a lender credit from Absolute Home Mortgage Corp. and $0 underwriting/processing fees. The appraisal and home inspection is the only required closing cost that the buyer is responsible for. The VA funding fee gets financed and can be waived if disability benefits are received. Currently the funding fee is 2.15% on a no down payment loan for first-time use. Reserves and National Guards pay 2.4% with no money down. Consult with your licensed mortgage profession for an accurate quote on the closing costs for any desired home.

 

My primary VA lending achievements have been in the Philadelphia, Montgomery County, Bucks County, Berks County, Chester County, and Delaware County regions of Pennsylvania. And 99% of all of them have been from local realtor recommendations. Please consider me for VA lending opportunities in Pennsylvania, New Jersey, and Maryland. 

Yours truly,

 

 

 

Edward Dubinsky
Branch Manager
Office: 267-296-9309

Cell: 215-808-5353
Fax: 215-701-9198
E-MaIl: edubinsky@ahmcloans.com

Web Site: edubinsky.ahmcloans.com

NMLS # 138324

 

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