As a homebuyer looking to qualify for a VA home loan in California, you must secure a Certificate of Eligibility. The official VA website has the following, helpful chart breaking down the amount of required time in service to be eligible:
When you put down less than 20% of the purchase price, Conventional loans (those backed by Fannie Mae or Freddie Mac) require Private Mortgage Insurance (PMI). Before we look at ways to manage the PMI imposed on you, it’s important to know that (Conventional) PMI is a different animal to the Mortgage Insurance that comes with FHA loans. And…… Read More »
The Seller can contribute a total of 8% towards a Veteran’s home purchase There’s much misunderstanding in the Lending industry, even amongst Loan Officers and Underwriters regarding how much the Dept of VA allows a Seller to contribute on a home purchase transaction. The confusion arises from misinterpreting the VA’s definition of “Seller concessions”. You see, in the VA’s eyes,…… Read More »
Private Mortgage Insurance (PMI) is a necessary evil when you borrow more than 80% on a Conventional loan. But in 2007 the Govt. passed the Mortgage Forgiveness Debt Relief Act which allowed PMI to be tax deductible if you fit certain income criteria. Unfortunately that Rule expired in 2011 which meant in 2012 homeowners couldn’t write off PMI as a…… Read More »
Did you know you can remain in Bankrtupcy and still purchase a home with FHA financing? Also, some buyers are eligible for FHA financing just 1 day after short sale ? Watch this informative video (40 mins) when you have time. http://www.youtube.com/watch?v=hXZSEXBvCKY
Someone asked me the other day if a Reverse Mortgage could be done on a property that had recently been acquired by the Seller (less than 90 days ago) Unfortunately for Reverse Mortgages (also known as HECM , i..e Home Equity Conversion Mortgage ) HUD doesn’t allow property flips. Below is an additional FHA related flip rule : If a…… Read More »
Yes he/she can! And yes , with a VA loan! Federal Tax Liens are basically the last stage of the collection process by the Internal Revenue Service, after a Levy. A lien basically ties up assets owned by the debtor. How can a VA loan be approved under these circumstances ? If the Veteran has a Payment plan (Installment repayment…… Read More »
How Long After Bankruptcy, Foreclosure, Short Sale Can I Buy a home?
The majority of transactions involving financing are ‘arms-length’ transactions where Buyer and Seller are strangers and have had no previous relationship. However, often a parent wants to sell to their kid, or a similar family-2-family sale happens where the buyer has no money for a standard FHA downpayment (3.5%). Is there a way for the buyer to take out a…… Read More »
If the mortgage the Veteran was foreclosed on was a non-VA loan (e.g. FHA, CONV etc) then he/she is eligible for VA financing after 2 yrs. However if the loan that was foreclosed on was a VA loan, some restrictions come into play. The Dept of VA is going to assess how much their $ loss was through that foreclosure……. Read More »