VA Fixed Rate Mortgage

Loan Characteristics:

TYPE: Fixed rate mortgage for veterans which is insured by the U.S. Government (Veteran's Administration)

TERM: 10, 15, 20, 25, 30 years

RATES POSTED DAILY

ASSUMPTION: VA loans are assumable, but the veteran remains liable for the mortgage unless the new borrower's credit is approved and the new borrower is an eligible veteran with loan guaranty available.

Underwriting Guideline Synopsis:

MAXIMUM LOAN AMOUNT:

The maximum loan amount (currently $240,000).

MAXIMUM LOAN TO VALUE:

Owner occupied purchase - 100%

FUNDING FEE:

If Veteran: (If you are receiving VA Disability, you may be entitled to no VA Funding Fee.)

With downpayment less than 5%

If using entitlement an additional time, funding fee = 3.30%

If not using entitlement an additional time, funding fee = 2.20%

With downpayment of 5%, funding fee = 1.5%

With downpayment greater than 5% AND less than 10%, funding fee = 1.5%

With downpayment greater than OR equal to 10%, funding fee = 1.25%

If Reservist / National Guard:

With downpayment less than 5%

If using entitlement an additional time, funding fee = 3.30%

If not using entitlement an additional time, funding fee = 2.40%

With downpayment of 5%, funding fee = 1.75%

With downpayment greater than 5% AND less than 10%, funding fee = 1.75%

With downpayment greater than OR equal to 10%, funding fee = 1.5%

PROPERTY:

Single family dwellings, PUDS/CONDOS (FNMA approved or warrantable). House needs to be in good condition & a permanent source of heat in every room.

DEBT TO INCOME RATIOS:

The sum of house payment, total monthly obligations, and all installments with a remaining term over six months divided by total gross monthly income cannot exceed 41% WITH SOME EXCEPTIONS.

CREDIT REPORT:

Credit scores have to be 585 from 3 different agencies. A bankruptcy must have been fully discharged for 2 years and the borrower must have re-established good credit.

PREPAYMENT PENALTY:

There is no prepayment penalty.

REFINANCING

If you currently have a VA loan, you can only do a rate reduction.

ITEMS NEEDED FOR LOAN APPLICATION

In addition to the regular documentation needed on all loans, VA loans require the following: original paystubs, certificate of eligibility, DD-214, and original contract.

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