Posts Tagged ‘VA’

Disabled Veterans Get Triple Benefits With VA Loans!

Monday, July 16th, 2012

Many Disabled Veterans are not aware of all the potential benefits they are entitled to. It is my job, as a lender, to properly interview the Veteran to determine what he or she might be eligible for, in addition to the standard VA Home Loan Benefit.

Most Veterans are eligible for the VA Home Loan Program that allows for 100% financing up to loan amounts of $417,000. Higher Jumbo Loan Limits are available with small down payments and all VA loans have no mortgage insurance.Disabled Veteran

VA Loans require an upfront, financed, Funding Fee of 2.15% on all first-time users of the VA Loan Benefit. The amount is added to the base loan amount of 100% of the purchase price, making the total loan amount 102.15% of the purchase price. Veterans with 10% or more disability rating are eligible for the VA Funding Fee to be waived. On a $200,000 purchase price, this would be a savings to the veteran of $4,300. On subsequent use of the VA Loan Benefit, the funding fee is higher and the savings would increase to over $6,600.

Many Disabled Veterans are NOT aware of the Disabled Veterans Property Tax Exemption that is available to them. A 100% Disabled Veteran in is entitled to a property tax exemption of up to $119,285 if total household income is over $53,566 per year, and up to $178,929 if household income is under $53,566 per year. Using 1.25% of purchase price, on a $200,000 home purchase the normal property taxes would be $2,500 per year. The lower income, 100% disabled Veteran would pay only $263 per year after exemption.Disabled Veteran Tax Exemption

Now we can add a Mortgage Credit Certificate (MCC) for additional savings. With Qualifying Income Limits, Veterans can get a tax credit of 20% of the amount of annual mortgage interest paid. Unlike a TAX DEDUCTION that deducts mortgage interest paid from your taxable income, a TAX CREDIT is taken right off the actual amount of federal tax due. For example, a $200,000 loan amount with an interest rate of 3.75% would provide a first year tax credit of just under $1,500. The Veteran can still write off the remaining 80% of the mortgage interest paid each year as a TAX DEDUCTION.

Other Benefits for Disabled Veterans in California include waiver of DMV registration fees, free license plates and reduced annual fees for fishing and hunting licenses. Spouses, registered domestic partners, children under age of 27 and unmarried surviving spouse of a veteran with service-connected disability or who dies as a result of service related causes may qualify for waiver of mandatory tuition and fees at any State of California Community College, California State University or University of California campus.

Veterans have put everything on the line to protect us, so it’s our responsibility to make sure that we help make them aware of all benefits to which they are entitled. They need to go to the FRONT of the line for short sales and REO’s, not the BACK of the line where they currently are in many areas. While most of us have been safe in our homes, they have been away from their families for extended periods of time, taking care of us. Now it’s time for all of us to “STEP UP” to do whatever we can to help these HERO’S to purchase a home for their families and share the American Dream. It’s the least we can do for them.


Good News for Veterans – VA Home Loan Costs are Dropping Soon!

Tuesday, September 13th, 2011

Veterans Saluting American FlagThe Veterans Administration has just announced that the VA Funding Fee required for VA Home Loans, will soon be reduced for most VA home purchase loans. Effective October 1, 2011, the one-time cost will be reduced by approximately 35%. This amounts to an up-front savings of $2,250 on a purchase price of $300,000.

The VA Funding Fee is paid directly to the Department of Veteran’s Affairs for the VA Guarantee, which eliminates the need for monthly PMI or Mortgage Insurance. The funding fee does not need to be paid separately and is typically rolled into the loan. Veterans are not required to pay a down payment and they can finance the VA Funding Fee as well. The VA loan, when compared to an FHA loan for the same $300,000 purchase price, will result in a payment savings of about $280 per month, or $3,360 per year.

Until now, the VA Funding Fee for the first time use of a VA Guarantee has been 2.15% of the base loan amount. The new fee will drop to 1.40% with a savings of .75% of the loan amount. Since Veteran Familythe VA Loan Benefit can be used more than one time if the prior loan has been paid in full, the subsequent use of the benefit will drop from 3.3% to 2.80% after October 1, 2011. On October 1, 2012, that fee will drop again to 2.15% and again on October 1, 2013 to 1.25%. Those “second use” loans have always been higher due to the additional use of the benefit. Reservists pay slightly higher fees than Veterans and Active Duty personnel. The fee on Interest Rate Reduction Refinances will remain the same. Call me for more details.

Some Veterans and surviving spouses of those who died in the service, or from service related disabilities may be exempt from paying the VA Funding Fee. If you are a Veteran getting disability compensation for service-related medical issues, or are entitled to get compensation if you aren’t drawing retirement pay, you are exempt from paying the VA funding fee. The VA will always have the last word on who is exempt.

If you are interested in more information on the VA Home Loan or how these new changes will affect you, please contact us today!


Bounce Back and Buy a Home Again…
…Quicker Than You Might Think!

Friday, May 27th, 2011

Losing a house through a short sale or foreclosure doesn’t have to mean the end of the road to purchasing a home again. You may be able to bounce back and buy a home once again quicker than you think!* In fact, if you haven’t owned a home in the last 3 years, you might even be eligible to purchase a home as a ‘first-time homebuyer’ and only need 3.5% down*!

Depending on your particular situation the following time frames must pass in order to be eligible for a new home loan*:

Previous Short Sale

3 Years to apply for an FHA
1 Year to apply for a VA
2 Years to apply for a Conventional*

Previous Foreclosure

3 Years to apply for an FHA
2 Years to apply for a VA
7 Years to apply for a Conventional

In all cases, satisfactory re-established credit must be shown. There are sometimes exceptions on the above restrictions when there has been a life event that has occurred, allowing for shorter time frames to qualify. A life event would be considered a death, but would not include a job loss or divorce.

In addition, you may also qualify for a Federal Income Tax Credit* based on a percentage of the mortgage interest paid each year.

Contact me today for a personal qualifying and planning evaluation!

Photo of Jennifer Remedios

Jennifer Remedios
(916) 486-6954

* Restrictions apply. Not all borrowers will qualify. This is not a commitment to lend. Program guidelines may change without notice. VITEK Mortgage Group always encourages you consult the advice of a tax professional for tax related programs. VITEK Mortgage Group is licensed by the Department of Corporations under the California Residential Mortgage Lending Act.

Thinking of Buying a Home? Tip 7 of 10 to Help.

Wednesday, May 11th, 2011

Today I’m posting tip #7 of a 10-part series on things you need to know before you start your house hunt.

TIP #7. Choose your loan, before you shop for your home.

There are two main types of loan categories; Conventional Loans and Government Loans. The loan options available to you will be determined by:

  • Down Payment
  • Loan Amount
  • Loan to Value or need for Mortgage Insurance
  • Credit Score
  • Property Type

Down payment: If your assets allow a down payment of 10% or more, then a conventional loan may be a worthwhile consideration. The mortgage insurance (MI) costs will be lower and it may be possible to remove the mortgage insurance earlier than on government loans.

Loan Amount: If your loan amount will be $417,000 or lower and you are buying in the continental US, an FHA, VA, USDA or Conventional loan are all options for you. If over $417,000, then your transaction would fall into whats called a JUMBO loan. September 2011 is the latest that FHA loans may be funded up to the $417,000 loan amount. We will have to wait and see what the new maximum loan for FHA will be after that date.

Loan to Value: If your down payment will be less than 10%, then you will want to look at securing a government loan like FHA, VA or USDA. FHA still requires a 3.5% down payment, all of which could be a gift, or a combination gift/grant, etc. VA requires no down payment from qualified Veterans with full eligibility. USDA also provides 100% financing, however, the property must be located in a less populated or rural area.

Credit Score: Credit scores play an important role in your options for home-loan financing. The better your credit score is, the better your loan pricing and options will be.

Property Type: Not all loans are available for all types of properties. Most notably, condominiums. Condos need to meet certain requirements for both FHA and conventional loans. The approval requirements are quite stringent. Some condo’s meet FHA standards, some Fannie Mae, some both or some VA. Most condos will not be in an area that conforms to USDA requirements.

For all of the above reasons it is wise for buyers to start early with an informed lender before beginning their home search. It is important to work with a lender that will help you understand all options available to you. Getting pre-approved first, is as much about finding the right loan options available to you, as it is about satisfying the home sellers that you have the necessary financing in place to successfully and quickly close your home loan.

As always, I am here to answer any of your home-loan questions!

Photo of Ingrid Pierson

Ingrid Pierson
(530) 885-1545
Licensed – NMLS # 233666

Up to 3% ‘FREE Downpayment Assistance Money’!

Friday, December 3rd, 2010

VITEK is now pleased to offer the California Housing Finance (CHF) – Platinum Program as an ‘in-house’ program! The CHF Platinum Program will help increase homeownership opportunities for low-to-moderate income individuals and families in California. Here is some basic information on the benefits of the program:

Downpayment Assistance Grant from CHF:

  • May not exceed 3% of the 1st mortgage loan amount
  • The grant does not require any repayment
  • Proceeds may be used for downpayment, closing costs and pre-paids
  • There must be no cash back to the borrower from the Grant Fund proceeds
  • No second lien – does not need to be calculated into the CLTV
  • No monthly payment – does not need to be calculated in the DTI
  • VITEK will fund Grant at the time of loan closing

Mortgage Loan Types and Terms:

  • FHA & VA – insured loans
  • Ineligible for use with the Streamline 203(k) program

Maximum FIRST loan amount:

  • The lesser of $417,000 (not including MIP) or maximum loan amounts permitted by HUD

For more information on the California Housing Finance – Platinum Program or to discuss other loan programs that might work best for you, contact us today!

Photo of Philip Duncan
Philip Duncan

Executive Vice President

We'll walk you through each step of the loan process.
Contact us today to get started!