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VA Home LOANS

Why FHA Loans and VA Mortgage Rates Are Typically 0.5% Higher

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In referencing to the rates on FHA and VA loans, they are typically 1/4-1/2% higher than FNMA/FHLMC rates. This is because the GNMA funds are based on the faith and credit of theUnited States... they are NOT based on the yields from the 10 year note which drive conforming/conventional rates.

Income Documentation Changes For FHA Loans & VA Lending (2011-2012)

The guidelines for FHA mortgages and VA loans are pretty much the same and have remained so for as long as I can remember. I have been in the business since 1992 and changes to these kinds of loans are slow to be made and slow to be implemented. The major difference to VA and FHA financing is in the area of paper work.

Where Can I Find Sub-prime Loans Today??

Sub-prime loans are a thing of the past. The days of easy money are gone and no one wants to take any risks on bad credit, high LTV’s, low FICO scores, high DTI’s and bad properties, especially where the foreclosure ratios are very high for a given area.

How To Avoid VA Loan Mistakes, Scams & Frauds

VA Loan Scams & Fraud Precautions

How to spot a VA loan scams and fraud attempts. One of the best home loans available today, are the Veterans Affairs loans, known as VA loans. These loans are secured by the department of United States Department of Veterans Affairs helping military personnel to be able to be homeowners with little to no money down payments. There are millions of military personnel who use these VA mortgage loans to finance their home all over the country.

Unfortunately there are cases where financial crimes are committed by people who takes advantage of the military personnel. In this short review you can read more about VA loan scams and fraud attempts, VA foreclosure traps worth to avoid.

Early Stages VA Loan Mistakes

Some of the VA loan mistakes begin at the early stages of the ‘mortgage shopping’ when the Vernen is still trying to figure how to get a VA home loan mortgage for buying a home. Because the VA loans are the best home loans available today, they allow getting zero down mortgages, and getting a loan even with bad credit where other options are simply not available.

Because of these unique terms, many are desperate to be able to qualify for VA mortgage loans, and that is where the problems begin. When a veteran gets advise from people and mortgage brokers who do not know enough about VA loans. These people are not ‘scammers’ yet they do have websites that build high expectation and promises to be able to get VA loan qualifications to any veterans or military personnel. They may not be truly an expert or experienced in such processes, in some cases they are not familiar with all the documentation needed and all the military ‘fine print’ and legal aspects of what they fill in the VA loan application.

Avoiding VA loans trouble, first tip would be working only with experienced VA loan brokers and only through the Department of Veterans Affairs local representatives and VA state centers.

It’s Not A Scam It’s Just An Unprofessional Advice

Some borrowers do a crucial mistake and listen to advice of people who VA loans is not their profession. If you are a military personnel and inquire about a loan, some people down the road may advise you to report False documentation. Dishonest advisers might encourage VA loan borrowers to report a higher yearly income or try to claim a different duration in certain military units or fabricate the kind of military service you were engaged in. Veteran Affairs have seen too many attempts to bypass the strict guidelines of the VA mortgage eligibility by filling false information in order to get approved.

Any such applications with incorrect data or dishonest reporting, will cause the application to be immediately disapproved. Since these applications will be scanned by experienced personnel and software checking and validating everything, these ‘mistakes’ if found are dealt with very seriously as VA fraud attempts by the borrower!

The VA Cross Payments Scam

One scam which is easy to fall into, and is easy to carry out for the scammers, is sending a very impressive letter to the VA mortgage borrower, announcing that the loan was purchased from the original lender and now belongs to some other lender. The scammers make sure the envelope they send seems very official, with all the right logos and government acronyms, the paper is a thick expensive looking paper, adding mortgage coupons with all the CEO CFO signatures assuring the content of the claim

The ‘new lender’ sends the new bank accounts for the borrower to continue their monthly payments, they ‘thank’ the borrower for following through and cooperation.

The veteran or their spouse or who ever is the scam’s victim changes the monthly payment and transfers the money to the scammers bank account. In the meanwhile the original lender sees that one payment was missed, and sends their letter to the VA mortgage borrower. Until the scam is detected a few month may pass, the borrowers was scammed by thousands of dollars and now has their credit report damaged by not being 100% current on the mortgage payments.

To avoid such VA mortgage scam, the veteran borrower needs to verify any suspicious requests they receive by email or by letter announcing ‘changes’. The best thing wold be to bring the letter to the original lender and verify with them any strange or ordinary request.

The Low Ball VA Mortgage Scam

The ‘low ball’ name for this scam comes from the marketing ‘low ball’ pitch, which is when the sales person asks for a small request which is difficult not to cooperate with if the person agrees there will be a second request, which is a higher risk request, which most people will cooperate with because they are already engaged and committed.

For example, at the mall and someone approaches and says: “Hi my name is Mike, I am from Green.com, can I ask you just few questions?” Since questions are low risk, people usually agree to answer. The person will ask “What do you think about global warming?” and then will follow with “Do you think enough is done to save our planet?” If you answer that global warming is a risk, and not enough is done to stop global warming, the person may ask you straight forward: “Thank you, would you be kind to donate as little as $5 to help us fight for a greener planet?” Most people would donate!

Take note that the VA mortgage scammers may send first a letter with a small or regular announcements, such as change in a phone number or the contact email, and request the borrower to make an initial call or email. Once the borrowers calls or sends an email, the scammers will reply politely and keep in touch with the borrower for small minor issues and ‘updates’. Soon the borrower is deep in their trap, because when the ‘scam letter’ arrives, or a higher risk offer is placed the borrowers are believing they are contacted by their original lender and not by the scammers.

Always be doughtful, double check with your lender before signing any documents.

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Be the first to comment - What do you think? Posted by admin - July 8, 2011 at 2:12 am

Categories: VA Home LOANS Tags: loan frauds, loan scams, mortgage scams, VA home loans, va loan scams, VA loans, VA mortgage scams

What Are The 2011 VA County Loan Limits

VA home Loan Limits For 2011

The new VA home loans limits for 2011 are now available to the veterans interested in the VA home loans. These VA loan limits are published each year by the Department of Veterans Affairs. The county limits for 2011 are relevant for all loans closed between January 2011 and will expire by September 30 2011, then new limits will be published as VA loan limits for 2012.

VA Loan Limits Formula Factors

There are three factors to accumulate the VA loan limits, these factors are permanent and concern any loan limits for this year or next years (unless changed). Many veterans ask “What is my VA loan limit? What is the maximum sum I can borrow with a VA loan?”.

The simple answer is that there is no answer to the question “how much” will I get, as this depends on:

The price of the property
The percentage of entitlement for the VA buyer
The place where the property is located

While the first and the second factors can be known to the prospect VA borrower, it is the third factor that is changing from year to year, depending on the real estate market for the specific county.

VA Home Loans Fantastic Terms

The VA loan is given to the veteran in an incredible mortgage terms, on which the best known term is the $0 down payment. Yes, zero down payment VA mortgage. Does this means that a veteran can pick a home and buy it, getting a 100% mortgage finance on the house? Well, the answer is yes… and no.

VA Mortgage Less Than The County Limits

The amount of money that will be granted for a VA loan with zero down payment, will be up to the VA county limit. For example if a veteran sees a home for sale at $350,000 and the VA loan county limit is $410,000, that means he can get the $350,000 with the full zero downpayment mortgage.

Buying A Home Over The County Limits

What happens in cases that the home mortgage needed is above the VA county limits for 2011? In our example if a veteran sees a home which is for sale at $450,ooo but the VA home loan county limits are $410,000? Will he be able to get the VA mortgage?

Yes. The veteran will get $410,000 mortgage with zero downpayment, because this is the county limit for VA mortgages. The rest of the funds needed ($40,000) to complete the transaction, will be given as a mortgage too, but for those there will be 25% downpayment needed. 25% from $40,000 are$10,000 downpayment. So the veteran will get the $450,000 mortgage but will need to place $10,000 as down payment on the whole deal.

More Factors On VA Mortgage Limits 2011

There is a list of all county VA loan limits at the VA website, if your specific county is not in the list, the VA has a fix limit of $417,000. Veterans may not use the entire VA loan limit in two cases: if the home market value is less than the limit or if the veteran has already used some of their entitlement for VA loans, and the left VA entitlement is not enough to reach the limit.

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Be the first to comment - What do you think? Posted by admin - May 8, 2011 at 9:22 am

Categories: VA Home LOANS Tags: 2011, 2011 mortgage rates, no money down loans, no money down mortgage, VA home loans, VA loans