A Special Program for Members of the Armed Forces: VA LOANS
- No Down Payment
- 100% Loan Financing
- No Mortgage Insurance Required
- 30-Year Fixed Rate or 3-Year Arms
- No Pre-Payment Penalty
Members of the armed forces who have generally served for two years in peace time, or 90 days during conflict are eligible for a guaranteed VA home loan. Members of the National Guard or Reserves who have served for six years are eligible. Widows of veterans are eligible if the veteran died in a service-related incident. There are special circumstances for some veterans regarding eligibility. A Certificate of Eligibility and DD214 are required.
A borrower may get into a home with absolutely no money of their own. Closing costs can be paid by the borrower, the seller, or a combination of both. The seller can pay off debts for the veteran – up to 4% of the loan amount. The funding fee is an administrative fee paid to the VA and can be financed into the loan. The funding fee is 2.15% for veterans and 2.4% for reservists who have not used their eligibility, or 3.35%for anyone who has used their eligibility. A down payment of 5% or more reduces the amount of the funding fee. Veterans with service-related disabilities may not have to pay a funding fee. Cash-out refinances (up to 90% LTV) incur the same fees as above. Rate reduction refinance incurs only a 1/2% funding fee.
Two-veteran households qualify for the same amount. Non-married co-borrowers are not permitted. Home purchases with VA loans must be for the borrowers’ primary residence. The VA offers loans to: Purchase a New or Existing Home, Rate Reduction Refinance, and Cash-Out Refinance. Borrowers are evaluated by their credit worthiness and their ability to show stable and sufficient income, to cover the costs of owning a home, cover other obligations and expenses, and have enough left over for family support.
St. Louis Mortgage Interest Rates – September 22, 2010
- 30-year fixed-rate 4.250% no points
- 15-year fixed-rate 3.750% no points
- 5/1 adjustable rate 3.250% no points
- FHA/VA 30-year fixed rate 4.375% no points
- Jumbo 5/1 ARM 3.625% no points
- Jumbo 15 year fixed-rate 4.250%
For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
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