VA Home Loans…The Last Real 100% Purchase Mortgage – - – By Paul Proffitt
ByThe mortgage melt-down started with 80-20 home loans. Think about it- If you take a person renting with fair or poor credit and then give them a home with no money down you are lending with no collateral. If the property values declined and the adjustable mortgage rates rose – What would be the motivation for this 1st time homebuyer to stick it out? We know its not the down-payment, because with 80-20 loans there is no down payment and no mortgage insurance. The bottom line is that home values dropped and the variable interest rates rose…Of course most of these 80-20 borrowers bailed out and the foreclosure epidemic arrived. Needless to say that 80-20 loans has disappeared.
The only true 100% home financing left is the VA home mortgage loans. You need to be a veteran and the mortgage rates are low. The VA funding fee is only .5% and borrowers can buy a new home with no money down. like FHA underwriting, the credit scores with VA mortgage loans are not as important as income and job history. Veterans who already have VA loans can do streamline refincing up to 100% as long as they keep the new mortgage rate and term. If Vets want cash out theu can refinance up to 90%.
6 Comments
September 10th, 2008 at 2:25 am
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September 26th, 2008 at 7:20 am
More good insight Paul! I always enjoy your articles. Where have you been lately? With the banks dropping left and and right I have been wondering when I am going to find one of your recently published gems. Our VA lenders continue to report interest rates for Vets under 6%. Please send any of your turned-downed loan applications for military borrowers our way.
http://www.MortgageLoanExperts.com
October 13th, 2008 at 8:46 am
no doc loans…
Loans-Home-Commercial-Student Personal attention to your financial needs. Qualified loan officers who are licensed mortgage brokers in all 50 US states. Full range of Residential and Commercial mortgage products with knowledge and expertise to hand…
October 21st, 2008 at 10:14 am
FHA mortgage lenders…
Luckily reports are that borrowersare still able to get these FHA loans despite fewer mortgage lenders willing to give these bad credit home loans out to the limited credit borrower. The only difference many are mortgage reporting as compared to the past many banks are not comi…
December 13th, 2008 at 6:21 pm
FHA mortgage loans are coming back. Hopefully they will helps the borrowers who are struggling with an adjustable rate.
January 4th, 2009 at 5:10 pm
Home remodeling and construction financing is available with cash out home equity lines of credit. Thanks for your thoughful financing articles and helpful industry tips for originating second mortgages and FHA loans.