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VA Loans: Eligibility and Financing

Jan 11th, 2012
by Kathy Rain.
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On average, VA loans are typically easier to qualify for than a conventional lending program. The program still provides significant financial benefits despite the fact that only a fraction of our nation’s veterans and service members have taken advantage of their benefits.

What is even worse, is according to a study by the Department of Veterans Affairs, nearly 20 percent of veterans don’t even know the program exists.

  • Qualifying for a VA loan
    VA loans are fairly easy to qualify for. Prospective buyers must have only:
    Served 181 days on active duty during peacetime or 90 days during wartime
    Served six years in the National Guard or Reserves
    Be the spouse of a fallen service member who died due to a service related injury.

Those who fall into one of those categories must take the next step of filling out a Certificate of Eligibility, or COE. This official VA document proves you are able to participate in the program and have met the service requirements. Applicants can obtain these through the VA directly or through an approved VA lender.

VA officials must look over the Certificate of Eligibility and ultimately determine whether a prospective borrower can participate.

The Department of Veterans Affairs doesn’t give explicit income or credit standards to qualify for the program, since the VA doesn’t issue the loan. Income and credit standards are given by VA-approved lenders, which generally require a minimum score of 620 to qualify.

Interest Rate Reduction Refinancing Loan (IRRRL)
The VA’s IRRRL, or streamline refinance, gives current VA home loan holders the opportunity to take advantage of the market’s low interest rates.
Prospective borrowers should remember that for this to be worth their while, they should make sure the new interest rate is lower than the current rate and that you can’t refinance a FHA or conventional loan through the IRRRL.

This program isn’t for everyone, but for those looking to lower their current interest rate, it is a great option. For more information on the VA home loan program and the VA’s IRRRL, contact a VA-approved lender like Veterans United Home Loans, the nation’s leading dedicated provider of VA home loans. Kevin Pearia is a mortgage commentator for Veterans United Home Loans, the nation’s leading dedicated provider of VA home loans.

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San Mateo Book Club Meeting

Jan 6th, 2012
by Kathy Rain.
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If “read more books” is on your New Years Resolution list then you are in luck! Here in San Mateo, there is a great opportunity to be more involved with your community while reading and learning more.

There will be a book discussion of “When Things Fall Apart- Heart Advice for Difficult Times” by Pema Chodron on January 9th from 6-7:45pm in the Cedar Room at the Main Library.

Through reflections on the teachings of mindfulness, Pema Chodron orients readers and gives them language with which to shape their thinking about the ordinary and extraordinary traumas of modern life. Connect with others who are seeking to become more aware of themselves and the world around them. Read Chapters 7-8 in advance and come ready to discuss them. For more information call (650) 522-7847 or email dscheifler@cityofsanmateo.org.

Meet like minded people in San Mateo and enjoy checking a goal off of your 2012 New Years Resolution list!

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What is the VA Home Loan Program?

Jan 4th, 2012
by Kathy Rain.
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The VA Loan Guaranty program was created over 65 years ago to honor the service members returning from World War II. Since then, the program has serviced over 20 million active-duty and veterans, providing them with flexible, low-cost lending.

Service members have long had a history of constant moves and deployments, which tends to have a negative effect on one’s finances. That transient lifestyle can take a toll on a service member’s ability to plan for and build toward the future, including providing the high down payment required by most conventional loan programs. This is the main reason why the VA loan program has proved to be so crucial for the last 66 years.

VA loans come with a guarantee from the U.S. government. In short, the VA agrees to repay up to a fourth of a borrower’s mortgage if he or she defaults on their loan. That guarantee gives a greater degree of confidence to lenders, which, in turn can offer qualified borrowers competitive interest rates and flexible loan terms.

In fact, the VA Home Loan program is one of the few remaining zero money down mortgage options available. Veterans and active duty across the nation see not having to place a down payment as one of the greatest benefits, and without it, they would not have been able to acquire proper housing.

Interest in VA loans is surging across the country. Amid a tight credit environment and a rollercoaster of a housing market, service members are turning to the safety of these government-backed loans in record numbers.
 
In the past year, a surge in VA home loan refinance has been responsible for the VA Loan program guaranteeing nearly 360,000 single-family loans for the fiscal year ending September 30.

Kevin Pearia is a mortgage commentator for Veterans United Home Loans, the nation’s leading dedicated provider of VA home loans.

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