Enhanced Va Mortgage Options Now Available For Veterans

[allan]

FOR IMMEDIATE RELEASE

Enhanced VA Mortgage Options Now Available for Veterans

Of Potential Benefit to Those in Financial Distress

WASHINGTON (Oct.24) -- Veterans with conventional home loans now have

new options for refinancing to a Department of Veterans Affairs (VA)

guaranteed home loan. These new options are available as a result of

the Veterans' Benefits Improvement Act of 2008, which the President

signed into law on October 10, 2008.

"These changes will allow VA to assist a substantial number of veterans

with subprime mortgages refinance into a safer, more affordable, VA

guaranteed loan," said Secretary of Veterans Affairs Dr. James B. Peake.

"Veterans in financial distress due to high rate subprime mortgages are

potentially the greatest beneficiaries."

VA has never guaranteed subprime loans. However, as a result of the new

law VA can now help many more veterans who currently have subprime

loans.

The new law makes changes to VA's home loan refinancing program.

Veterans who wish to refinance their subprime or conventional mortgage

may now do so for up to 100 percent of the value of the property. These

types of loans were previously limited to 90 percent of the value.

Additionally, Congress raised VA's maximum loan amount for these types

of refinancing loans. Previously, these refinancing loans were capped

at $144,000. With the new legislation, such loans may be made up to

$729,750 depending on where the property is located.

Increasing the loan-to-value ratio and raising the maximum loan amount

will allow more qualified veterans to refinance through VA, allowing for

savings on interest costs or even potentially avoiding foreclosure.

Originally set to expire at the end of this month, VA's authority to

guaranty Adjustable Rate Mortgages (ARMs) and Hybrid ARMs was also

extended under this new law through September 30, 2012. Unlike

conventional ARMs and hybrid ARMs, VA limits interest rate increases on

these loans from year to year, as well as over the life of the loans.

Since 1944, when home loan guaranties were offered with the original GI

Bill, VA has guaranteed more than 18 million home loans worth over $911

billion. This year, about 180,000 veterans, active duty servicemembers,

and survivors received loans valued at about $36 billion.

For more information, or to obtain help from a VA Loan Specialist,

veterans may call VA at 1-877-827-3702 or visit www.homeloans.va.gov

<http://www.homeloans.va.gov/> .

[Teac]

Yes but who pays the 4-6K to refinance the loan? The veteran because finance companies are goin to get their money one way or the other.

[Pete53]

If you are 100% the loan will have most of the fees not included. No points either.

[gdsnide]

Pete,

I now have a (I think 6.85... 30 year note)

Not having any problem with it but have been looking to get a lower rate.

Do U know the specific rate for the loan & I am 100% & how much does it cost for the loan & is the cost of the loan put on the tail end of the loan?

My house is appox. 1/2 paid off.

Thanks,

GARY

[Teac]

If you are 100% the loan will have most of the fees not included. No points either.

Pete,

On the average $150K home the closing cost are between 4 and 6 thousand dollars. The only thing that a disabled veteran does not have to pay on a va loan is the va funding fee which on average is 1 1/2% of the value of the loan. Veterans rated 100% do not get any addition discounts. I have used my VA loan on four different homes, so I am quite schooled in these facts.

I bought a new hom just over a year ago, and ever since I receive at least 2 offers to refinance my loan every week. I presently have a 6.5% loan. It will cost me over $4000.00 to refinance to get a 5% loan, then I will have to stay in the home at least 6 years to break even or the refinance would be a waste of money...

If you get lucky on the inital loan a veteran can almost always have the seller pay some or all of teh closing cost, but in reality the buyer is still paying the cost.

Now unless the recently passed legislation does away with all the closing costs ( and I don't think it did) then nothing has really changed as far as the fees to refinance or get a new loan.

[admiral7]

Does anyone have information on how to split mortgage allowanc to be able to have two VA loans?I was told this by a lady at North American Savings bank this morning.She claims I can hve two houses with a VA loan.

[Teac]

Does anyone have information on how to split mortgage allowanc to be able to have two VA loans?I was told this by a lady at North American Savings bank this morning.She claims I can hve two houses with a VA loan.

I don't really know how this works.. At one time I did have two separate active VA loans.. This was back in the 1990's, when I let a non-veteran assume my first loan. One home was about $86000 the other $53000. I was actually given an eligibility certificate that showed the remaining VA Loan eligibility

Since then both notes were paid off. I purchased another home in 2007 and requested that VA provide me with a VA certificate of eligibility showing the remainder VA eligibility and I was told by a VA employee that the VA will not guarantee two homes at one time anymore... So I don't know if the rules changed or if the employee was blowing smoke. I do know depending on your location you have a maximum amount that the VA will guarantee.

What you should do is to contact the VA eligibility Office for answers: http://www.benefits.va.gov/HOMELOANS/contact.asp