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News You Can Use
I think we can agree that our service members and veterans are likely the bravest heroes we know. Do you also know the ins and outs of a VA loans? I do. In fact, when I first started lending, over 50% of my clients chose VA financing so this program is one of my favorites.
Remember these no down payment loans are available to most Active, Veteran and Reserve Service Members. While there is no monthly mortgage insurance on VA loans there is a funding fee which is a 0-3.3% upfront charge that can be paid at closing but is often rolled into the loan amount. Also the no down payment option is available up to a $417,000 loan amount.
Please know there’s not as much red tape as you might remember or have heard. When a lender is LAPP approved, the buyer’s loan is processed and closed by the lender without requiring VA’s approval or appraisal review. Furthermore, besides obtaining the veteran’s Certificate of Eligibility (which a lender can obtain for them) and VA assigning the appraiser, the loan process is very similar to other mortgage programs.
It is also worth understanding that VA loans can be used repeatedly. When a veteran purchases a home with a VA loan and then sells it, their eligibility is reinstated. This allows them to use their eligibility to purchase other home using VA financing as before.
It’s understandable to have questions about VA loans since they aren’t common in the Charlotte market. However, this is a program worthy of consideration so ask any questions you have, it’s an honor to serve those who serve.
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Rebecca Madej is a Charlotte mortgage banker who excels at helping clients choose the appropriate mortgage strategy and enjoys demystifying the financial process on her blog at rebeccamadej.com. She publishes a weekly “Mortgage Matters” e-newsletter and can be reached at 704.488.8883 or by email. -
News You Can Use
Tomorrow is Groundhog Day. What news will Punxsutawney Phil bring us this year? Will he see his shadow? If he doesn’t see it, Spring will come sooner…could warmer weather bring more sales contracts at higher prices, less mortgage defaults, and more jobs? No pressure Phil, but some thawing in these sectors sounds pretty good about now.
The Treasury Department announced last week that a homeowner’s attempt for loan modification will be more difficult, requiring more paperwork and verification. The goal is to make the process harder to start but easier to qualify for. HUD’s announcement last week about lifting the 90 day seasoning rule will make acquiring and reselling foreclosures simpler. The tax credit is still available for eligible buyers under contract by April 30th which is sure to help recipients’ pockets.
My point is there are resources for the changes and improvements we are sure to see in the upcoming months. Whether or not Phil predicts a shortened Winter, the groundwork is being laid for the market to turn around for many. My role at Cunningham & Company is to provide clients with trouble-free lending so let me know how I can help!
Featured Loan Program
VA
Cunningham & Company offers 100% financing through VA mortgages. These loans are available to past and present service members and require no down payment and no mortgage insurance.
- Maximum loan amount with no down payment is $417,000
- The funding fee can be financed into the loan
- VA eligibility can be used time and time again
- Fixed rates and ARMs available
- Reduced documentation available through automated underwriting
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