VA Loan Eligibility – Home Buying

VA Loan Eligibility – Home Buying

Millions of veterans and military service members have been able to buy the home of their dreams with the aid of VA loans. The loan has a great many advantages, one of which is a no-down payment requirement. However, keep in mind that a VA Loan is only eligible for a primary residence. You can’t use a VA Loan for an investment property. So how do you know if you’re eligible for such a great loan? The VA-backed loan has some distinct guidelines for eligibility. To receive a VA Loan, you must be a: Veteran Active duty personnel Reservist or National Guard member A surviving spouse of a veteran or service member who has died in service or due to a service-related disability. If you meet the above requirements, you must complete a VA Form 26-1880, Request for a Certificate of Eligibility and submit it with a proof of military service. If you don’t have proof of military service, the VA may be able to establish eligibility for you. Some lenders have access to the Certificate of Eligibility for you through the Web LGY system. However, it’s important to note that not all cases can be processed through Web LGY and it’s important to talk to your lender about this method for more advice. Guidelines for proof of military service depend on your unique situation Regular active duty – current – You must have an original statement of service signed by the adjutant, personnel officer or commander of your unit. This…

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Cash Out Refinance and 2nd Mortgages

Cash Out Refinance and 2nd Mortgages

It’s the age old dilemma. Cash-out refinance or home equity loan – which one should you use to pay off your debt? First of all, if you need cash you probably want it pretty fast. Technology has made that extremely possible in this day and age of instant financial transactions and online purchasing. Second, you have equity in your home because you bought wisely, spent a little bit to update your “castle” and now it’s worth more than you owe. That was smart of you. Good job! Third, you want to borrow at a low rate and you want the possibility of tax-deductible interest. Who doesn’t, right? So, you investigate and compare a cash-out refinance against an old-fashioned home equity loan or line of credit. Without getting into too many specifics here, more often than not, a cash-out refinance will cost less and make more financial sense (keep in mind, lots of stuff influences final mortgage numbers so you’ll need to have a mortgage professional review your situation to make absolutely sure). Here’s why. Why choose a Cash-Out Refinance? A home equity loan or home equity line of credit are usually second mortgages. In other words, they are mortgages that you take out on top of the first, or main, mortgage that you have on your home. This makes them second liens against your property and therefore they are more risky and expensive for both you and your mortgage company. A cash-out refinance is not a second loan; it is…

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Home Loan Closing

Home Loan Closing

Ok, you’ve found your dream home and you’ve applied for a mortgage; now comes time to close on the house. Closing is the completion of the real estate sale and mortgage loan transaction. Many parties may attend the closing besides you including (but not limited to): the seller, a representative for the lender, attorneys (yours and the seller’s), and a representative from the title company. Closing Documents At the closing, you’ll have to review and sign several documents which will complete the entire process. These include the HUD-1 settlement statement which lists all the closing costs and fees you’ll need to pay in connection with your loan; the mortgage note which says you promise to repay your loan; the mortgage or deed of trust which provides a detailed legal description of the property you’re buying and confirms that you are pledging the property as collateral for repaying the loan; the Truth-in-Lending statement which states your annual percentage rate (APR); and the monthly payment letter which shows a breakdown of your monthly mortgage payment-it may also contain payment coupons. Closing Fees You will have to pay closing costs which are settlement fees that may include: the appraisal , credit report , processing fees, attorney fees, underwriting fees , and purchase points . Closing costs will vary by geographic location, so make sure you ask your mortgage banker what costs you’ll have to pay so that you don’t run into any problems on the day of closing. Learn more about closing costs.…

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VA Jumbo Loan: Higher Mortgage Loan Amounts for Veterans

VA Jumbo Loan: Higher Mortgage Loan Amounts for Veterans

Are you a veteran or member of the U.S. military who needs a very large loan amount for your home? Good news! Quicken Loans is proud to offer the VA Jumbo loan for amounts over $417,000 – up to $1,094,625. If you live in Alaska or Hawaii, the maximum loan amount is $1,500,000. VA Jumbo Loans are a top benefit for veterans and military personnel because it offers more flexible requirements and higher loan amounts than conventional loans. Contrary to popular belief, the Department of Veterans Affairs (VA) actually don’t write the mortgages. Instead, the VA insures the loans that are written by banks and mortgage companies. Financing (or refinancing) with VA loans are only available for veterans and active members of the U.S. Military (and spouses – even widows, as long as they don’t remarry). The Benefits of VA Jumbo Loans The VA Jumbo loan offers higher refinancing amounts than many typical conventional loans. These flexible guidelines often allow more homeowners to refinance in difficult housing and financial markets. Here are some of the benefits of refinancing with a VA Jumbo loan: VA loans allows up to a 90% refinance limit – higher than most conventional loan limits. No PMI when refinancing with a VA loan. No prepayment penalties on VA loans. VA assistance to veteran borrowers in default due to temporary financial difficulty. Ability to roll the VA funding fee into the refinance amount (no funding fee for disabled veterans). If you’re buying and not refinancing a home, the…

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Mortgage Applications

Mortgage Applications

Be Prepared! Applying for a mortgage for the first time can be intimidating and sometimes overwhelming. But if you have all the right documents prepared ahead of time, it will make the process go much smoother and faster. First, lenders will need to know your date of birth and Social Security number in order to pull a credit report. They do this to find out how risky you are as a borrower. Generally, the higher your score, the less risky you are and the better rate you’ll qualify for. Then, you’ll need to give your lender: Documents you will need: The signed purchase agreement Copies of your W-2 forms Proof of income (original pay stubs, verification of employment, or two years’ worth of tax returns) Proof of assets (bank statements, investment statements, etc.) to show you have money to cover closing costs Copy of the earnest money deposit Copy of your homeowners insurance It may take some time to gather all of them, but it will be worth it when it comes time to close your loan. Not everyone will be able to document everything and that’s ok. There are very flexible loans available with little documentation. But generally speaking, the more documentation you provide, the better interest rate you’ll get on your loan. A Quicken Loans home loan expert can help you figure out exactly which documents you’ll need to prove your income and assets. They can also tell you whether you’ll need other documents other than the ones…

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Homeownership Preservation

Homeownership Preservation

Life is full of surprises. Sometimes, events beyond our control interfere with our best intentions – like paying our bills. Luckily, there’s help for homeowners who face challenges in making their payments. If you’re at risk, it’s important to realize you are not alone. Millions of homeowners face foreclosure each year. If you are having difficulty making your payments, your first course of action should be to contact your servicer as soon as possible. Whether you intend to sell your home or stay in it, your servicer can help with a variety of programs to support your goals. Resources for Every Homeowner Foreclosure isn’t good for anyone. That’s why the U.S. Department of Housing and Urban Development offers resources to help homeowners find the best solutions for their unique circumstances. Be cautious of those who claim they could help – sadly, there are scams that take advantage of homeowners in need. Only trust your servicer or HUD-approved counseling agencies when seeking information. HUD-Approved Housing Counselors Find foreclosure-prevention counseling in your area. 800-569-4287 Homeownership Preservation Foundation A HUD-approved housing counseling agency 888-995-HOPE Making Home Affordable Loan Lookup Tool Find out if your loan is eligible for a lower rate with Making Home Affordable Quicken Loans Programs for Homeownership Preservation If Quicken Loans is your servicer, and you’re having difficulty making your payments, your best course of action is to contact our servicing team directly. At Quicken Loans, we know that your home can be your most powerful asset and your key…

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