Real Estate
October 18, 2019
link to facebook link to twitter
More Stories
Seven common mortgage mistakes What to expect in today’s loan process? How to use rental income to qualify for a mortgage How to plan the optimal time to buy a rental property The loan process and what not to do Why waiting for mortgage rates to get better is a losing proposition A factor that can drive your mortgage cost up How child support and alimony can affect your ability to get a mortgage What to look for when getting a mortgage on a manufactured home Why getting a 30-year fixed-rate mortgage is a smart financial move How to lower your cash to close when buying a home What you need to know about securing a VA mortgage How mortgage lender credits work Five quirky refinance scenarios that work Two mortgage loan programs get a better interest rate The #1 mistake consumers make when getting a mortgage… Things that affect your first-time buyer mortgage options Be wary about paying off this type of mortgage Best benefit for your first-time home buyer A bank statement program might help get a mortgage Read the fine print Cash-out refinance or home equity Should you refinance with today’s mortgage rates? Should you buy and build or buy a single family home? Don’t make mistakes when getting a mortgage refinance Home value when refinancing Should you go FHA or conventional for purchasing your first home? Mortgage rate sounds too good to be true Finances matter when buying a home FHA requirement might hurt buying chances How to get a mortgage without providing tax returns The new way to get a mortgage with 1 year income tax returns Four common home buying mistakes to avoid How to create wealth with your income and finances Should you buy a house with monthly mortgage insurance? 2019 conforming loan limits rise FHA loan limits for 2019 increase Working two jobs makes now easier to get a mortgage How much of your mortgage income should be going towards an auto loan? How much are closing costs when you purchase a house? Self-employed income Common questions on financed mortgaged insurance loans A loan program you may be eligible for based on your credit score Can you use roommate income to get a mortgage? Pulling credit may not make sense Cash to payment formula when buying a home Lender knows how to purchase business? Be careful getting a mortgage if you have a bankruptcy How expensive your mortgage will be due to bad credit? A non-traditional program for self-employed mortgage borrowers What you need to know about the mortgage 4506-t document Two mortgage process problems you will want to avoid How the mortgage process gets ugly if you have a difficult picture Could the 30-year fixed mortgage get to 3 percent? Purchase price should not be most important factor Three reasons you should not buy a home Three quirky issues that will hurt your mortgage Why your mortgage payment keeps changing The credit score it takes to get a mortgage How 1031 tax-deferred exchanges work Six to avoid when purchasing a home Mortgage inquiry makes your credit score drop? Transfer property to family and be protected under Prop 13

Why the VA mortgage is the best home loan

By: Scott Sheldon
April 12, 2019

If you served in the military, a VA mortgage, if you can qualify, supports the maximal amount of borrowing power with the lowest possible payment. Here are some things to consider when looking at a VA mortgage…

The US Department of Veterans Affairs guarantees loans up to 100 percent loan to value for purchase rate and term or cash out refinance loan scenarios. The VA mortgage contains a funding fee which will vary based on the size of a loan that you’re seeking, but the big benefit is you can finance with no monthly mortgage insurance of any kind. The VA will require you to provide a family budget with your loan application explaining how your monthly budget and finances work.

Other nuances to VA loans include other homeownership costs. The veteran is not permitted to pay per federal requirements; these include some specific fees that your lender will have to cover for you, so you automatically can receive a lender credit to cover such fees making this loan very affordable. VA loans are also very profitable loans to mortgage companies. As a by-product of this the rates on VA loans are exceptional, typically beating FHA and conventional loans in rate and on price on any given day.

To get a VA mortgage the property must clear a pest report. The veteran can pay for that pest report when refinancing. When buying a home, the pest damage can be paid for by the seller or buyer.

The property must clear a section 1 termite report, and if the property is on well-water and septic tank it must pass a well and septic report If the property is rural or in a county area with no city access.

If the property is on a shared private road with no public utilities in terms of road maintenance, there will need to be a shared private road agreement in place to get a VA mortgage on that property.

VA loans are for military veterans and their spouses and they also allow co-signers to co-sign on a VA mortgage. You must have at least a 15 percent equity position and the other people co-signing must live in the home.

VA mortgages also contain no maximum loan limit, so for example, looking at Sonoma County, in California the maximum loan limit for a VA loan is $704,950 for a 1-unit home which is the conforming high balance loan limit in that area.

You can get a VA mortgage far above and beyond this amount however the difference must be made up in the form of equity which is a function of your entitlement and a 25 percent coverage which is the portion of the loan the VA guarantees.

The reason this mortgage has the best mortgage by far is because the rates are extremely favorable, underwriting on this mortgage make sense and very “pro story” in terms of their credit decisions and these loans are very flexible and allow for higher debt to income ratios.

Scott Sheldon is a local mortgage lender, with a decade of experience helping consumers purchase and refinance primary homes second homes and investment properties. Learn more at www.sonomacountymortgages.com.