Recently, I heard a radio commercial on the radio about “special” financing for certain veterans. The ad continues to imply this “special” loan is available for a limited time only. The good news is that the VA offers loans to members of the armed forces who have generally served for two years in peace time, or 90 days during conflict. Members of the National Guard or Reserves who have served for six years are eligible along with widows of veterans if the veteran died in a service-related incident. There are special circumstances for some veterans regarding eligibility.The Maximum VA loan amount is $417,000. Two-veteran households qualify for the same amount. Non-married co-borrowers are not permitted. VA loans for new construction require a builder warranty, and home purchases with VA loans must be the borrowers’ primary residence. 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 for family support. A borrower may get into a home with absolutely no money of their own.
The VA offers zero money down program. Closing costs can be paid by the borrower, the seller, or a combination of both. Closing costs generally include; VA Appraisal, Credit Report, Origination Fee, Discount Points, Title Search & Insurance, Recording Fees, Survey and applicable taxes. 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. Veterans with service-related disabilities may not have to pay a funding fee. Cash-out refinances up to 100% incur the same fees as above. Rate reduction refinance incurs only a 1/2% funding fee.
VA Loan Highlights:
- No Down Payment-100% Loan Financing
- Cash out or rate and term refinancing
- Loans up to $417,000
- No Mortgage Insurance Required
- 30-Year Fixed Rate or 3-1 Arms
- No Pre-Payment Penalty
St. Louis MORTGAGE INTEREST RATES for July 6, 2011:
- Conventional 30-Year Fixed 4.750%/ 5.125% APR
- Conventional 15-Year Fixed 3.875%/ 4.10% APR
- Conventional 5/1 ARM 3.500%/ 3.277% APR
- FHA/VA 30 Year Fixed 4.500%/ 5.00% APR
- Jumbo 5/1 ARM 3.125%/ 3.000% APR
- Jumbo 15 yr Fixed 3.750%/ 4.125% APR
- Jumbo 30 yr Fixed 5.125%/ 5.425% 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; we just celebrated our 40th anniversary. Great rates and programs are secondary to what is most desired in a lender relationship. The most sought-after aspects in this industry cannot be easily translated onto paper…learn more about us here.
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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