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.
Highlights of the VA Loan Program:
- No Down Payment
- 100% Loan Financing
- No Mortgage Insurance Required
- 30-Year Fixed Rate or 3-Year Arms
- No Pre-Payment Penalty
St. Louis MORTGAGE INTEREST RATES for December 15, 2011:
- Conventional 30-Year Fixed 4.00%/ 4.190% APR
- Conventional 15-Year Fixed 3.375%/ 3.565% APR
- Conventional 5/1 ARM 2.500%/ 3.159% APR
- FHA/VA 30 Year Fixed 3.875%/ 4.085% APR
- Jumbo 5/1 ARM 2.750%/ 3.011% APR
- Jumbo 15 yr Fixed 3.625%/ 3.875% APR
- Jumbo 30 yr Fixed 4.875%/ 5.125% APR
*The above mortgage rates are based upon an 80% LTV, o/o single family with FICO scores of 720.
Paramount Mortgage is a locally owned Mortgage Banker celebrating our 41st year. Great rates and programs are secondary to what is most desired in a lender relationship: Integrity, Communication and Customer Satisfaction. Be to check out our website: www.paramountmortgage.com
For more information or if you have questions on mortgage rates 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.
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