Mortgage Workbench

VA County Loan Limits for 2012

MikeD — Fri, 16 Dec 2011 13:56:56 +0000

The VA county loan limits for 2012 have been posted on the Department of Veterans Affairs (VA) Home Loan Limits website. VA County Loan Limits

Loan limits for counties in the contiguous United States will range from $417,000 to a maximum of $625,500, depending on the median county home price. Loan limits in some counties have decreased but this does not impact Interest Rate Reduction Loan of IRRL transactions which remain at current limits. The VA is alerting lenders that it is possible that

Please note that the limits apply for loans closed from January 1, 2012 through September 30, 2012: http://www.benefits.va.gov/homeloans/loan_limits.asp

To Apply for a VA Home Loan, Please Use Our Secure VA Loan Application

2012 USDA Funds Available Under Continuing Resolution

MikeD — Thu, 20 Oct 2011 13:37:19 +0000

Fiscal Year (FY) 2012 funds have been made available for purchase and refinance type loans for the Single Family Guaranteed Loan Program under a Continuing Resolution (CR) which expires on November 18, 2011. However, refinance funds are very limited and are not sufficient to fund all refinance request that are currently on hand at this time

Rural Development FY 2012 fee structure:

2 percent up-front fee for purchase transactions;
1 percent up-front fee for refinance transactions; and
0.3 percent annual fee for both purchase and refinance transactions.

Rural Development FY 2012 Processing Priority:

Loans where a Conditional Commitment was issued “Subject to Commitment Authority,” will be processed first. Lenders must submit the closing package and appropriate up-front guarantee fee to Rural Development as soon as possible. Upon confirmation that all conditions of the Conditional Commitment have been met, and the appropriate up-front guarantee fee received, Rural Development will issue Form RD 1980-17, “Loan Note Guarantee,” to the Lender. An annual fee amortization table will be attached to the Loan Note Guarantee informing the lender of the annual fee amount that will be due to Rural Development 12 months from the date of settlement.
After the backlog of “Subject to Commitment Authority” Conditional Commitments has been processed and Loan Note Guarantees issued, new Conditional Commitment requests will be processed in date order received.

At this time we can only provide funding information through the expiration of the current CR (November 18, 2011), however, we will advise of any changes in funding as soon as they become available.

To Check Your Eligibility For a USDA Loan click here

To Apply For A USDA Loan Use Our Secure Application Now!

USDA Changes Funding Fee Effective October 1, 2011

MikeD — Fri, 23 Sep 2011 23:22:13 +0000

On October 1st 2011, USDA will change it’s funding fee structure. The new funding fee for purchases will be 2% upfront, and 0.3% annually. Refinances will stay the same at 1% upfront, but will also have the 0.3% monthly fee.

This change is not the best news for USDA, but the program remains to be the only program besides a VA loan that allows a borrower to buy a home with no down payment. The payment still ends up being favorable to the borrower.

To Apply for a no down payment USDA Home Loan, use our secure loan application.

VA Lowers Home Loan Funding Fee Effective 1 October 2011

MikeD — Wed, 21 Sep 2011 13:49:10 +0000

Great News for VA Loans. As of October 1st 2011 the VA funding fee is dropping down to 1.40% down from 2.15% for regular active duty and for National Guard / Reserve the funding fee will 1.65% down from 2.40%. This is a positive change for the VA and will lower the cost for a veteran purchasing a home.

We specialize in VA home loans, please use our secure VA loan application to apply for a mortgage today!

See the updated VA Funding Fee Circular.

Apply for a VA Home Loan Now!

How to Buy a Home With No Down Payment In the Current Lending Environment

MikeD — Tue, 13 Sep 2011 01:31:24 +0000

There are currently only two ways to get 100% financing for a single family owner occupied home in the current environment. The first method is a classic VA home loan that allows no money down financing with market interest rates. The VA loan requires the borrower to be an eligible veteran and is a great way to obtain 100% financing. The down side is that not everyone qualifies for VA home loans.

The second method is a source that you might not think of when it comes to obtaining no down payment home loan When most people think of the USDA (U.S. Department of Agriculture) they do not think of home financing, but rather cattle, farming, etc. I bet you would be surprised to learn that the USDA offers one of the best loan programs available and really the only loan of its kind.

The U.S. Government has appropriated funds to the department of agriculture rural development division to promote growth in rural areas. They guarantee loans so that home buyers can purchase single family homes and condos in rural areas with no down payment. There are restrictions and guidelines for USDA financing eligibility. The USDA loan can only be used to purchase single family owner occupied homes in eligible areas and the borrower’s income must not exceed the local area moderate income guidelines. Recently these income guidelines have been increased to allow more borrowers to qualify for the program.

It may surprise you to learn how many towns and properties around you are eligible for USDA financing. It is important that you search for homes with the financing in mind to make sure that you are looking for homes in eligible areas. The reason you may not have heard much about this loan is because not many loan officers know how this type of loan works so they ignore it all together. USDA loans are a bit more complex than the conventional loans they are used to originating.

It is very important to make sure you find a financing professional who understands and knows how the USDA loan works. Since automated underwriting is typically not an option as it is on conventional financing, a complete and correct loan package must be submitted to insure a trouble free and timely closing. It is important to use a USDA trained loan officer. For links to short training videos as well as eligibility tools, please see the resource box below.

Mike Dell’Ovo is a mortgage adviser who has been helping consumer with USDA financing since 2003. If you would like more information on USDA Rural Financing or would like to check your area and income eligibility, please visit to apply Secure Loan Application Also for a Video and to use the USDA Eligibility Tool.

Article Source: http://EzineArticles.com/?expert=Michael_Dell’Ovo