HadIt.com Elder allan Posted October 25, 2008 HadIt.com Elder Share Posted October 25, 2008 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/> . Link to comment Share on other sites More sharing options...
Teac Posted October 26, 2008 Share Posted October 26, 2008 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. Link to comment Share on other sites More sharing options...
HadIt.com Elder Pete53 Posted October 26, 2008 HadIt.com Elder Share Posted October 26, 2008 If you are 100% the loan will have most of the fees not included. No points either. Veterans deserve real choice for their health care. Link to comment Share on other sites More sharing options...
gdsnide Posted October 26, 2008 Share Posted October 26, 2008 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 gdsnide Link to comment Share on other sites More sharing options...
Teac Posted October 27, 2008 Share Posted October 27, 2008 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. Link to comment Share on other sites More sharing options...
admiral7 Posted February 12, 2013 Share Posted February 12, 2013 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. it's me! Link to comment Share on other sites More sharing options...
Teac Posted February 12, 2013 Share Posted February 12, 2013 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 Link to comment Share on other sites More sharing options...
Question
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/> .
Link to comment
Share on other sites
Top Posters For This Question
3
1
1
1
Popular Days
Oct 26
3
Feb 12
2
Oct 25
1
Oct 27
1
Top Posters For This Question
Teac 3 posts
Pete53 1 post
gdsnide 1 post
allan 1 post
Popular Days
Oct 26 2008
3 posts
Feb 12 2013
2 posts
Oct 25 2008
1 post
Oct 27 2008
1 post
6 answers to this question
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now