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VA Loan / Veteran Mortgage News
SPONSOR:
Pioneer Military Loans offers responsible military lending solutions that can help
service members avoid or break the debt cycle. Pioneer serves active-duty and career-retired military service members,
as well as Department of Defense employees.
JUNE 2003
Rates Keep Falling
Mortgage interest rates kept dropping as we moved into the summer months. Recently rates
were at their lowest points in almost half a century! Veterans and active duty military now have
the chance of a lifetime to gain fabulous financing terms when buying or refinancing their home.
Even if you considered purchasing a house or refinancing recently, you might be
surprised at how much more today's rates work to your advantage.
Households are finding they can accomplish goals now that seemed far-fetched just a year ago.
Taking the time to look into how today's rates can help you may pay off big for you in years
to come.
Let us be your guide in today's exciting mortgage marketplace. We'll make certain you have
the opportunity to consider different loan programs. Choosing a mortgage that suits your
individual finances and temperament is just as important as obtaining a low rate. You may
want a 15-year mortgage, so you can retire debt-free.
Or you may find now is the perfect time to move up to your dream home, while enjoying
affordable payments. Households eager to make their all-important first home purchase
also should act now. You'll find that we listen to you, and work hard to gain the financing
you want. Call us right away, and start enjoying the benefits today's great rates offer you!
The GI Bill Can Change Your Future.
We have partnered with the following schools and service providers. Visit their content centers and
fill out an instant inquiry to receive more information!
DeVry University
DeVry University offers flexible scheduling and the convenience to study at any of 80+ locations, online or a combination of both. Earn a respected associate degree, bachelor’s degree or master’s degree from an accredited university.
Westwood College Online
Westwood College’s online program offers you the flexibility you need to earn your degree when and where it’s most convenient. Degree programs include business, criminal justice, design and technology.
Colorado Technical University Online
At Colorado Tech Online, you can earn a career-relevant degree in just 15 months. Every CTU Online degree includes multiple Professional Certificates without additional courses or cost. Learn more today.
Capella University
As an accredited university with online degree programs in five schools, Capella University is committed to helping you accomplish your goals through a high-caliber educational experience.
Strayer University Online
Strayer University Online offers degree programs designed to fit your busy schedule. Attend real-time courses via the Internet, or complete coursework at times most convenient to you.
Walden University
Balance your personal and professional commitments while earning a respected Ph.D., master’s degree, or bachelor’s degree online at Walden University. Programs offered in management, education, psychology and health and human services.
American Military University
American Military University’s online programs can prepare you to succeed in a civilian or military career. Choose from more than 50 Associate, Bachelor’s and Master’s degree programs.
Kaplan University
Advance your career and get the distinct competitive advantage you need with an online degree from Kaplan University. And do it without missing a day of work.
University of Phoenix
As a regionally accredited university, and a long-time member of Service members Opportunity Colleges (SOC), University of Phoenix is approved by all branches of the military for tuition assistance and is approved for veterans training.
South University
South University enjoys a long-standing tradition of excellence in education and personalized student attention. Enjoy the convenience of earning your bachelor’s degree entirely online.
AIU Online
Earn your Associate’s, Bachelor's completion—even an MBA—from the comfort of home at AIU Online. Choose from career-track programs such as Visual Communication, Information Technology and more.
The Art Institute of Pittsburgh -- Online Division
Whether you’re just starting out or are a seasoned professional, you can jump-start your career with an associate's or bachelor's degree from The Art Institute of Pittsburgh -- Online Division.
Everest University Online
Expand your career horizons with an online degree from Everest University Online. Balance work and family while you study for your Associate’s, Bachelor’s, or Master’s degree.
Virginia College Online
Earn your associate's, bachelor’s or master’s degree from Virginia College Online. Our extensive programs are offered 100% online, so you can launch the career of your choice from the comfort of your own home.
Grand Canyon University
Grand Canyon University is currently offering programs through our Online Campus in our College of Education, Ken Blanchard College of Business, College of Nursing, and College of Humanities and Social Sciences.
Grantham University
Looking to advance your career or enhance your professional skills? Earn your degree online at Grantham University. Programs include Business Administration, Criminal Justice, Computer Science and more.
Jones International University
Earn a high quality degree in Business, IT, Education, or Communications. Jones International University® offers self-paced bachelor’s and master’s degrees tailored to your needs.
Ellis College
Take your career to the next level. Ellis College offers customized, flexible online degree programs for busy working professionals like you.
Baker College Online
Pay less than half the tuition at Baker College Online, a fully-accredited and highly-respected online school. Click to learn more about the over 30 programs.
Why Are Rates So Low?
Continued slow economic growth has encouraged the Federal Reserve to keep interest rates
at historically low levels. Reduced borrowing costs encourage businesses and individuals
to spend and invest.
Yet America's economy has remained sluggish, in spite of falling rates. Excessive expansion
by firms in the boom years of the late 1990s has led to a period of reduced activity now.
Currently America's economy is growing, although the pace isn't strong enough to generate
new jobs. Some economists fret that the U.S. economy in the future could deflate, which
means that prices would actually be going down.
Right now that possibility seems slim, largely because the Federal Reserve is taking
action against it. Deflation most likely would be preceded by a harsh recession, in which
many households saw their incomes dropping.
Fortunately, today many Americans are taking advantage of current economic conditions to
lock in incredible financing terms. Don't hesitate to contact us if you have questions
about how today's real estate market and the outlook for interest rates affect you.
Secrets to the VA Loan Lending Limits, Co-signors, and Occupancy Requirements
VA LENDING LIMITS
Since the VA will guarantee a maximum of 25 percent of a home loan amount up to $60,000, the
maximum VA home loan amount is $240,000, inclusive of the funding fee being rolled into the
loan. This maximum amount applies to all jurisdictions in the United States.
VA JUMBO LOANS (GREATER THEN $240,000)
Veterans who live in high cost areas or who wish to purchase or refinance a home loan with a
price in excess of $240,000 can now use their VA status to do so. In cases where the new loan
amount exceeds that amount, the VA will allow the new loan amount to go up to $322,700
(conventional conforming loan maximum), with the stipulation that the veteran either
put down a 25% down payment on any amount over the $240,000 or have sufficient equity
in their property for that amount.
An example would be an eligible veteran wanting to purchase a new home for $265,000.
The maximum VA loan amount would be $240,000 with a $0 down payment, and the veteran
would need to come up with a cash down payment of 25% of the amount over $240,000
which is $25,000. This equals to a $6,250 down payment. In this example, the Veteran could
purchase this home for a down payment of $6,250 and obtain a mortgage in the amount of
$258,750. Because this is a Jumbo VA loan, the funding fee must be paid in cash.
Here are some great reasons for getting a jumbo loan:
- Standard VA underwriting guidelines apply
- Higher debt-to-income ratios
- No private mortgage insurance is needed
- Competitive conventional conforming rates
VA RULES ON CO-SIGNORS OR JOINT LOANS
The VA guidelines recognize legally married spouses of qualified veterans as co-signors on VA
loans and can include their income. These loans can be fully guaranteed by the VA. The VA
guidelines will allow for more than one eligible veteran(s) to purchase a home. If more
than one eligible veteran is involved, VA divides the entitlement charge equally between
them, if possible. These loans can be fully guaranteed by the VA.
While the VA guidelines may allow for a non-veteran to co-sign for a mortgage loan, they
will not fully guarantee the loan. The VA Guarantee is limited to that portion of the
loan allocated to the veteran's interest in the property. That means the VA will not
fully guarantee this type of loan and our company cannot originate loans that are not
fully guaranteed by the VA.
THE VA LAWS ON OCCUPANCY
The law requires a veteran obtaining a VA guaranteed loan to certify that he or she intends
to personally occupy the property as his or her home. As of the date of certification, the
veteran must either (1) personally live in the property as his or her home, or (2) intend,
upon completion of the loan and acquisition of the dwelling, to personally move into the
property and use it as his or her home within 60 days after the loan closing (reasonable).
The above requirement applies to all types of VA guaranteed loans except Interest Rate
Reduction Refinancing Loans (IRRRLs). For IRRRLs, the veteran need only certify that he or
she previously occupied the property as his or her home.
Economy Set to Pick Up
Demand has been weak in 2003, and many companies are hesitating before hiring additional workers.
Yet economists expect the picture to brighten later this year. Some say growth then could
accelerate at more than twice the pace seen during the first half of 2003. More new jobs
and improved consumer confidence will result.
Lower energy prices will help both businesses and consumers to find extra funds in their
budgets in coming months. Reduced taxes also will give America's consumers more spending
power. Home sales will stay strong, although we'll see rates moving up as the economy
strengthens. Eventually the Federal Reserve will raise rates to keep inflation at bay.
Now is a great time to act on your home buying dreams. Moving is easier than you might imagine,
with mortgage rates today around 40-year lows. Yet no one knows how long these rates will
be available. Contact us right away to find out how today's opportunities can help you
achieve your home purchase goals.
Financial Security - And More
Stocks have not been kind to investors recently. More than three out of four individual
investors recently surveyed said they lost money on equities during 2001 and 2002.One out of
five investors noted that they would delay retiring as a result. Today U.S. homes are worth
more - at a total value of $12 trillion - than the nation's stock portfolios.
Enjoying living in a home and watching it go up in value form emotional and financial
cornerstones in the lives of many Americans. Of course, no investment can be guaranteed
to increase in price over time. But owning a home has consistently anchored our financial
security for generations. Tangible benefits are provided to homeowners - from current tax
deductions to financial freedom in retirement.
Thank You!
Our business wouldn't be having such an exciting year without the support of important people
like you. Most of our loans are repeat business from past customers, or their referrals. Thanks for
keeping us in mind, and mentioning us to your friends, co-workers, and relatives. With your help,
we'll continue serving our community's home financing needs.
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