I hope you had a wonderful weekend, and sorry for the delay in getting this out today.
I was looking over underwriting changes that VA has made recently, and I thought I would let you know about a couple of them and also update you on a few more things that I feel are important for your VA buyers:
VA Buyers can now pay for wood-destroying pest inspection fees and repairs.
VA can waive the funding fee for active duty service members with a disability pending. Funding fee waivers can get tricky and take some time, specific forms need to be filled out, and the Government is involved. So do it ASAP!!!
The two above are the changes, and below are some key things you need to know:
VA only allows the seller to give a 4% Closing cost credit.
If a veteran buys with his significant other, they have to put 12.5% down, and each buyer needs to qualify for at least half of the mortgage.
Disabled Veterans don’t seem to have debt-to-income ratio requirements. We see many of them get approved with 75-80% debt-to-income ratios, almost double the norm!
VA Buyers can buy with 0 down with no Maximum Loan amount! The old rule was to put down $1.00 for every $4.00 they purchased above the regular loan limits.
VA buyers may have enough eligibility to buy a second VA property without selling their first property. Sometimes they need to put in a down payment to give them full eligibility. This is case by case!
Detached Condos MUST BE VA Approved! Unlike FHA, where a detached Condo does not require FHA approval! Don’t get this stuff confused. LOL!
A veteran can pay the difference between the appraised value and purchase price.
Interest rates have increased slightly over the past three days, but nothing too dramatic. We will see many ups and downs between now and the Fed meeting next week.
30-year Government Loans (FHA / VA) are in the highs 4’s and low 5’s
Conventional Loans up to $647,200.00 – Mid to high 5’s.
High Balance Loans $647,201.00-$ 970,800.00 are in the mid to high 5’s
Jumbo loans above $970,801 are in the mid to high 5’s
5/1, 7/1, 10/1 Arms are in the 4’s for over $647,201. Under that, don’t bother right now!
Bank statement loans – They are available with 10% down again! 6’s+ depending on down and credit score.
Stated income loans – I have one bank with 30% down, but everything else has to be perfect! Interest rates are in the high 6’s.
0 down loans are in the 5’s – 620 credit score min right now! Mid 6’s, for the most part, up to $670,000.00.
0 down Jumbo to $975,000.00 – 680 credit score – call for a quote
Private Money lenders – hard Money Loans – 35% down!
No Ratio Loans 30% down
Debt Service Coverage loans with as little as 25% down
Bridge Loans – are typically 6.99% with limited fees – But they get you where you need to go!
Interest rates are subject to change without notice! Above are LA County Loan Limits.
I will be around all week if you have any questions or if someone interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 xt. 2222. Please text me at 661-714-6258 or email me at Mike@AugustaFinancial.com. Have a great day and a better tomorrow! Please call me when you have a client that needs to borrow!