Monday, December 17, 2012

2013 VA Loan Limits and Program Highlights


The 2013 county VA loan limits have been published... see link at the bottom.

The VA Loan is a great choice for qualified Veterans as they typically carry a lower APR than most other mortgage programs available. It is important that your Loan officer know the loan program well, it is easy to run into trouble in underwriting that could ruin your chances of getting approved. Don't be afraid to ask how much experience they have with VA Loans upon application. 

Some highlights of the VA loan program include:

Purchase Loans:
  • No down payment may be required. *Depending on loan limits and entitlement. 
  • Up to 4% of closing costs can be paid with seller concessions *this may include other debts owed by the Veteran.
  • Funding fee from 1.25% (regular military with 10% down) to 3.3% for subsequent use.
VA Streamline - IRRRL (Interest Rate Reduction Refinance Loan): VA to VA
  • Funding fee of only .5%
  • No credit report, appraisal, nor income verification may be required.
  • The loan to value will allow for up to 100% or more. *Lender requirements may vary
  • Notes: The new loan amount must be less than the original plus "allowable" closing costs. There is an exception to this if your loan is delinquent so that late charges and/or legal fees can be included. Your payment is only allowed to increase if you are refinancing out of an ARM. Funding fees may be financed if loan limits allow.
VA Cash-Out: Regardless if you are taking cash out or not, go figure.
  • Funding fee of 2.15%, 2.4% for Reserves/National Guard, or 3.3% for subsequent use.
  • Loan to value up to 90%
  • Loan being refinanced does not have to be a VA Loan.

Other perks:
  • Never any PMI (private mortgage insurance).
  • Loan amounts up to $417,000, higher limits available in certain counties around the states. *Funding fee included.
  • Flexible underwriting, we will leave it at that, too many what ifs, ands, or buts.
  • All VA loans may be assumed by another qualified Veteran with only a .5% funding fee.
  • Veterans with a service connected disability of 10% or more the funding fee is waived.
  • Jumbo loans available *Down payment equates to 25% of the VA county loan limit or 25% of the loan amount, whichever is less.
  • Construction, and Manufactured Home Loans are also available, other restrictions apply.
To apply for a VA loan you'll want to provide a copy of your DD214. Your lender can request your  Certificate of Eligibility or COE for you electronically, no need need to make a special trip.  To apply for this o any other loan program contact me today!

Additional Resources: