From IndigoMortgage.net

Friday, January 27, 2012

Understanding VA Loans



Becoming a homeowner is the dream for many of you living in New Mexico and it may even be one of the top priorities for someone returning from overseas as part of the active military. Those in the military or those transitioning back into civilian life can take advantage of lending programs designed for them, also known as VA loans, which help those that often cannot qualify for a conventional loan.

Things to Know about VA Loans
Here are some things you need to know about VA loans before you get started:
·         The Veterans Administration does not actually make loans, but it does guarantee loans made by an approved institutional lender.
·         Only an eligible veteran may obtain a VA loan through a VA-approved lender who can provide them with an application and a loan process that fits their needs.
·         There is no down payment requirement up to a certain loan amount. 
·         There no mortgage insurance premiums required.
·         Assumable loans are available.

Requirements and Qualifications
Here are some things you need to know about qualifying and what the loan requires:
·         A veteran must have a Certificate of Eligibility to apply for a VA loan. The certificate will show the veteran’s entitlement or their right to obtain a VA loan.
·         If a veteran sells their home and the buyer gets a new loan that pays off the VA loan, then the veteran may restore their VA eligibility and apply for another VA loan.
·         There must be a specific VA appraisal called a Certificate of Reasonable Value (CRV).
·         Maximum loan amounts do vary by state and local values.
·         The veteran must live in the home as his or her primary residence.  
·         There are no prepayment penalties on VA loans. 
·         A veteran who may have had a foreclosure could still qualify for a special VA loan program.

What Indigo Offers
Indigo Mortgage offers a wide array of options for New Mexico homebuyers that qualify for VA loans. Here’s what we can do for you:

Purchases
  • 100% purchase money (zero money down for the veteran)
  • 4% of purchase price to be paid towards veterans closing costs
  • No mortgage insurance
  • Funding fee waived with 10% or more disability
Refinances
  • Up to 90% cash out or 90% refinances
  • Can pay off existing mortgage even if not a VA loan
  • No mortgage insurance
  • Funding fee is waived with 10% or more disability
Streamlines
  • No income verification
  • Streamlined to a lower rate or a shorter term
  • Must be current for last 12 months on mortgage
Get Started Now!
There is no time like the present to see if you qualify for a VA loan while housing prices in New Mexico are low and inventory offers a good selection to help you find and get you into the home of your dreams. Leave your questions here or contact us directly. We would love to help those of you who have served our country well.

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