If you are an active duty or retired military service member, you are probably very familiar with the benefits of a VA home mortgage loan. If you meet the various length of service requirements, and were discharged under conditions other than dishonorable, you are entitled to special mortgage loan benefits including the ability to purchase or refinance a home with little to no equity and more flexible qualifying criteria than many other traditional mortgage loan programs. The following is a listing of some of the lesser known provisions:
Energy efficient improvements up to $6,000 or more can be added to your loan amount whether acquiring or refinancing an existing property. This can be a great way to make needed improvements without additional out of pocket expenses for new windows or a new HVAC system.
Veterans who have a service-related disability may be entitled to a grant of up to $60,000 to acquire a specially-adapted home, to remodel an existing home to make it suitable for a disabled resident, or to build a home for this purpose. Any grant amounts not used may be subsequently requested at a later date for a subsequent home purchase.
Qualified service members who have declared personal bankruptcy may still qualify for VA financing if the bankruptcy has been discharged within the last two years. Homes purchased with VA financing may be pursued under a Chapter 13 bankruptcy if the applicant has a satisfactory payment history over the past 12 months on their repayment plan, and the new debt is approved by the Trustee or Bankruptcy Court judge.
An existing VA loan may be refinanced to a lower interest rate at discounted costs and without using additional entitlement. Interest Rate Reduction Refinancing Loans (IRRRLs) may be secured up to 100% of the home’s value without any underwriting approval or the need for an appraisal. While no “cash out†is permitted, energy efficient improvements and closing costs may be added back to the loan.
Loan amounts are available over $417,000 as the VA will guarantee 25% of the original principal loan amount up the maximum guaranty amount which varies according to geographic location. This results in a potential loan amount of over $1 million in Texas.
VA loans remain one of the most flexible mortgage financing programs available today, and virtually the only one that still provides 100% financing. Becoming familiar with some of the lesser known features can insure that our service members receive the benefits they deserve. Additional details on these benefits can be found by calling your local VA office or through your mortgage lender.
Disabled military Veterans who currently reside in Texas or who listed Texas as their home of record at the time of entry into the military are eligible for significant home loan discounts through Home Loan Specialists’ Texas Veterans Loan program. These reductions include no money down financing and lower mortgage rates.
Texas Vets who are 30% or more disabled with a compensable, service-related disability as verified by the VA, are entitled to a half percent discount off of already discounted rates. Current rates are available by visiting www.mytexasvaloans.com. The maximum loan amount is $325,000.
The Veterans Administration also offers a specially adapted housing grant program for Veterans who have a service-related disability. An eligible Veteran may receive a grant of no more than 50% of the cost of a specially adapted housing unit up to a maximum of $50,000. These Veterans are also entitled to a waiver of the VA Funding Fee which can amount to a savings of up to 3.3% of their loan amount, or up to $6,600 on a $200,000 loan for a subsequent user of VA loan guaranty benefits.
As with other Texas Vets, disabled Veterans can utilize VA home loan benefits as long as they were not dishonorably discharged. VA loans allow “no down payment†mortgage financing and reduced out of pocket closing costs through allowable seller contributions not permitted with conventional mortgage loans. These loans are among the only one that can be structured to allow a Vet to purchase a home with virtually no money having to be brought to closing.
For more information on this program or if you have any questions regarding a Texas VA Loan, please contact Mike Lesmeister at Home Loan Specialists at (832) 286-1601.
Average rates for the benchmark 30-year fixed mortgage, as reported by Freddie Mac, stood at 4.50% this week. This represents a change of +.01% over last week’s average which reached a new low for 2011.
The average for the 15-year fixed amortization equaled 3.67%, down .01% on the week. The 15-year average represents yet another new low for 2011.
Mortgage-backed security prices remain strong in contrast to the extreme volatility noted in the equity markets this week. This is largely a result of European economic instability particularly with respect to Greece.
Today, Home Loan Specialists is posting par rates of 4.25% on 30-year fixed conventional and FHA loan programs. 15-year conventional rates are listed at 3.5% with 10-year rates available as low as 3.25%. These rates do not include origination fees.
Now is an especially attractive time for active military and Veterans to take advantage of VA-guaranteed home loans and Texas Vet Home Loans. According to the Texas Veterans Land Board, current rates on a 30-year fixed rate purchase loan stand at 4.26%. These loans are particularly attractive for Texas Veterans because in most cases they require no down payment and many closing costs can be funded through seller contributions. Vets can purchase home at substantial discounts due to the weak housing market and afford even more home due to the low rates available. Additional information can be found by visiting http://www.mytexasvaloans.com.
Average rates for the benchmark 30-year fixed mortgage -Â as reported by Freddie Mac -Â stood at 4.50% this week, unchanged from the previous week. The average for the 15-year fixed amortization equaled 3.69%, up .02% on the week.
This week the European Union and the International Monetary Fund announced an agreement to keep the Greek economy from collapsing with a 5-year austerity plan. This has had a calming effect on the mortgage-backed security markets, which are now poised to react to the impending US debt crisis.
Home Loan Specialists is posting par rates of 4.25% on 30-year fixed conventional and FHA loan programs. 15-year conventional rates are listed at 3.5% with 10-year rates available as low as 3.25%. None of these posted (par) rates have changed over the past week.
According to the Texas Veterans Land Board, current rates on a 30-year fixed rate purchase loan stand at 4.25%. VA loans are particularly appealing to Texas Veterans because they can purchase home at substantial discounts due to the weak housing market and afford even more home due to the low rates available. Commonly, these loans require no down payment and many closing costs can be funded through seller contributions. Additional information can be found by visiting http://www.mytexasvaloans.com.
Reverse mortgage applicants were stunned this week as Wells Fargo and Bank of America announced plans to discontinue originations of these Home Equity Conversion Mortgages. This leaves MetLife as America’s largest participant in this market. Home Loan Specialists originates HECM products for Texas seniors over 62 years old that hold a minimum of 50% equity in their homes.  Contact Rick at 832-286-1591 or at Rick@HLSTX.com if you have any questions, or if you are interested in a reverse mortgage consultation.
July 8, 2011 Average rates for the benchmark 30-year fixed mortgage as reported by Freddie Mac stood at 4.60% this week, up .09% from the previous week. The average for the 15-year fixed amortization equaled 3.75%, up .06% on the week.
The only relevant news came with this morning’s deeply disturbing unemployment report. It had been forecasted that unemployment would remain unchanged at 9.1%. However, the report illustrated an actual increase to 9.2%, a clear signal that more and more Americans are losing their jobs.
Rates on VA loans remain very attractive – as low as 4.5%. For more information, check out our Texas VA Mortgage Rates here.
Home Loan Specialists is posting par rates of 4.375% on 30-year fixed conventional and 4.25% on FHA loan programs. 15-year conventional rates are listed at 3.625% with 10-year rates available as low as 3.25%. Rates appear headed to lower levels as a result of the jobs data.
Our recommendation is to lock into fixed rates during the coming week. For buyers who have been pre-approved, this is a golden opportunity to secure great long-term fixed-rate programs.
The lesser of two evils is giving homeowners another clear shot at refinancing to a lower rate, a shorter term, or both.
The two evils are: the impending US budget crisis which, if the debt ceiling isn’t increased by August 2nd, will threaten to cause the government to default on credit obligations; and the rapid deterioration of several fragile European economies including Greece, Spain, Italy, and Ireland.
Fixed-income investors are choosing to favor dollar-based securities over those backed by the Euro. As demand for (US Treasuries et al) has risen, bond prices have increased, thereby pushing rates back down below rolling 12-month averages.
- 30-year fixed mortgages (at par) can be locked in the 4.25% to 4.5% range
- 15-year programs are available at 3.5%
- 10-year amortizations as low as 3.25%
- Even more attractive are 3 year ARMs in the mid 2s
- Investors can also reap these benefits with rates that are only .5% to .75% higher than the par rates stated above available on primary residences.
- Jumbo loans (>$417,000) are also at bargain basement levels with 30-year fixed terms in the low 5%s and 15-year at 4.25% to 4.5%.
Once an agreement on the US budget is reached, all bets will be off. If the highly contested debate ends with a compromise that leaves any lingering scent of possible inflationary pressure, bond prices will likely fall and rate increases will likely be dramatic and instantaneous.
Their active duty may be complete, but we should always remember the sacrifices they made. Our military veterans dedicated themselves to protecting Americans, defending the constitution and strengthening the United States through their service.
Help the Astros and Gallery Furniture honor our great community of retired military for their valor, excellence and timeless service. Thank a veteran for their service by nominating them for Operation Veteran Appreciation.
For every Astros home game starting July 15, one veteran will be selected to receive two Astros tickets, each loaded with $15 that can be spent at the ballpark. Their tickets won’t be for just any seats, but specially designed patriotic seats that will let all fans know that the individuals sitting in them have served their country.
Please click here to be directed to the website for more information and to complete the nomination form.
The Federal Housing Finance Agency has announced that conforming loan limits in Texas will remain unchanged for 2011. This announcement affects conventional loans underwritten to Fannie Mae and Freddie Mac standards, FHA loans, and VA home loan guarantees. There had been significant speculation that lower loan limits for FHA were in the works as a result of an expiration of temporary increases and lowered home values. Conventional loans in Texas will continue to be available up to $417,000 through September 30, 2011. The $271,050 limit on single family FHA loans will also be extended to September 30th. VA loans do not have a formal loan limit, but instead guarantees 25% of loans made up to $417,000 through September 30th for veterans who have their full entitlement available. Loan limits for 2012 will be announced later in the year.
