Who
says 100% financing
isnt possible for first time home buyers? If
they did, then they dont know about one of the great loan programs
available to Veterans. I had to go back in an edit this blog I forgot to mention that with a VA Loan there is no PMI payment! With veterans day right around the corner I felt
it was an appropriate time to discuss VA Loan Benefits. Here are some
frequently asked questions about the VA Loan program.So what is a VA Loan & Who can use it?
The VA Loan also know as the The GI Bill it provides veterans with a federally guaranteed home with no down payment. That's right no down payment, regardless of the real market. This was put into place to ensure the dream of home ownership became a reality for millions of veterans.
Eligibility for the VA loan is defined as Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime. There is a two-year requirement if the veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981. There is a six-year requirement for National guards and reservists with certain criteria and there are specific rules concerning the eligibility of surviving spouses.
What is the VA Loan Limits?
For Orange & Seminole County the maximum loan for a $0 down payment is $417,000
What Kind of Closing Costs do I pay?
A veteran can pay closings costs. They most often times think that VA will pay these for you. They can however be rolled into your loan, but a better scenario is still to have the seller pay your closings costs. But with a VA Loan the veteran can pay a maximum of all reasonable and customary amounts for any and all of the "Itemized Fees and Charges" designated by VA as defined below plus a 1% flat charge by the lender plus reasonable discount points. Some special provisions apply to construction, alteration, improvement and repair loans.
What is the Maximum Debt to Income Ratio?
Add up the total mortgage payment (principal and interest, escrow deposits for taxes, hazard insurance, homeowners' dues, etc.) and all recurring monthly revolving and installment debt (car loans, personal loans, student loans, credit cards, etc.). Then, take that amount and divide it by the gross monthly income. The maximum ratio to qualify is 41%.
Here's an Example:
Total amount of new house payment: $1,100
Total amount of monthly revolving debt: $500
Total amount of monthly recurring debt: $1,600
Borrower's gross monthly income (including spouse, if married): $4,000
Divide total house payment by gross monthly income: $1,600/$4,000
Debt to income ratio: 40%
This is not the only determining factor and there are some extenuating circumstances that will help over look a high debt to income ratio.
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For
information on buying, selling, or auctions in Central Florida, Orange
County and Seminole County, new
construction,
bank
owned, short sale and foreclosure properties and Relocation services
contact your Lake Mary Real
Estate Agent Heather Joubran @ 407-810-6304 or hjoubran@remax.net.
Seminole County consists of Lake Mary, Sanford, Heathrow, Longwood,
Altamonte springs, Winter Springs, Oviedo, Casselberry. Orange County
consists of
Orlando, Downtown Orlando, Baldwin Park, Windermere, Apopka, Winter
Park, Maitland, Disney, UCF, East Orlando, Lake Nona.
I can help you with all your housing needs from Luxury Homes to First
Time Home Buyers
"Always work with a
Realtor when selling a home. Would you hire a
Realtor who has never sold a house before, knows nothing about real
estate law, contract negotiation, or sales? Of course not –
but that describes you. Don’t hire yourself – hire
a real estate sales professional." ~ Ric Edelman