VA Loan: The Perfect Loan For Veterans

 

VA Loans – A Great Option for Veterans

A VA loan is a mortgage loan guaranteed by the U.S. Department of Veteran Affairs (VA) that is available to most US service members. It offers some very great benefits to those that have served our country.

Benefits of VA Loans

• You can buy a home with no money down.
• You can refinance your home up to 100% of the value of your home.
• You never have to pay PMI (Private Mortgage Insurance).
• Sellers can pay your closing costs.
• They are usually easier to get because the Government insures the loan so that there is much less risk to the lender.
• If you already have a VA Loan you might be eligible for a VA Streamline Refinance.
• Disabled Veterans may qualify for a waiver of the Funding Fee if they receive any disability payments from the VA or if they are considered to be at least 10% disabled.

Who is eligible for a VA Loan?

As a rule of thumb, almost all active duty or honorably discharged service members are eligible for a VA loan.

You may be eligible for a VA loan if any one of these statements describes you:

• I served 181 days during peacetime. (Active Duty)
• I served 90 days during wartime. (Active Duty)
• I served 6 years in the Reserves or National Guard.
• I am the spouse of service member who was killed in the line of duty.
• I currently receive disability payments from the VA.

What is the VA Funding Fee and is it required?

Yes, it is required. It is a fee paid directly to the Department of Veteran’s Affairs so that they can guarantee your loan and provide you with the opportunity to receive a loan with little to no money out of pocket.

How much is the VA Funding Fee?

It depends on several factors including: Whether you are Active Duty, Retired, Guard or Reserve and whether you this is a first time use, subsequent use, or a cash-out refinance as well as how much of a down payment you are putting down. The fee can range from as little as 1.25% up to 3.3% of the loan. Generally, the more money you put down the lower the VA funding fee. Please contact us and we will help you to determine how what the exact cost of the VA Funding Fee would be for your particular situation.

Do I have to pay the VA Funding Fee out of pocket?

No, you can include the VA Funding Fee in your loan and pay the funding fee over the course of your loan.

Do I still have to pay other normal closing costs like Appraisal, Title and Escrows?

Yes, however with a VA loan if you are purchasing a new home the seller can pay for all or part of your closing costs.

What is a VA Streamline Refinance?

A VA Streamline Refinance is a refinance option that is available if you already have a VA mortgage and you want to lower your interest rate with little or no out-of-pocket closing costs. You don’t have provide bank statements, W2s, job verification or paychecks.

You can reach Travis Newton, Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

Looking to get PRE APPROVED? Go HERE

Your Loan, On Time, Every Time!

Travis Newton

503.931.4490

Sales Manager

OR MLO 269195

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Are You Ready To Buy A Home?

 

Seek a Qualified Mortgage Lender to Ensure the Best Results

Home Buyers Face Decisions that Affect Their Long-Term Financial Picture

Taking the step into home ownership is one of the most important financial decisions a person will make in their lifetime. There are many factors to consider when embarking on this venture. Literally hundreds of loan programs are available, and it is important to find the one that best fits your personal long-term goals.

First and foremost, you must have a mortgage consultant in your corner that is willing to take the time to know what your long-term goals are. Communication is the key factor here.

Curious prospective home buyers sometimes turn to Internet-based services just to see what current interest rates are. But a faceless web site will not take the prospect’s future financial planning into consideration or guide the potential borrower through the many nuances of the loan process. When shopping for a home loan, be wary of web-based services that offer programs to reel prospects in with attractive rates that are based upon unrealistic time frames.

If a lender is offering a terrific rate based on a 10-day lock-in period, it is unlikely that the potential home owner would actually be able to find their dream home, get through the negotiation process and win approval from a lender within such a short period of time. This is called short-pricing, and when it comes time to close the transaction, the rate that was originally offered is simply no longer available. As a result, the unfortunate prospect is bulldozed into a loan program with a higher interest rate.

It is highly unlikely that a qualified loan originator whose business is based upon referrals will use unscrupulous tactics such as this to get new customers in the door!

Once you have found a mortgage consultant that you feel comfortable working with, lay your goals out on the table because it will have a tremendous impact on choosing a loan program that meets your specific needs. One of the most important factors to consider is how long you wish to borrow the money for. For example, if you know you will only be in the home for five years, it wouldn’t make sense to opt for a 30-year loan program or pay points up front to secure a lower interest rate. You would not be in the home long enough to benefit from such action.

Your mortgage consultant should be able to narrow down a selection of programs based on the information that you have provided, and present you with an easy-to-read spreadsheet that clearly defines viable options for your interest rate and amortization schedule, monthly payment and any potential savings you may realize by paying points up front.

Moreover, a reputable loan originator will not hesitate to share this information with your tax consultant or financial planner so they may offer additional feedback on your behalf.

Home ownership imparts a rewarding vehicle for building wealth and a strong financial future. The mortgage consultant that you choose should be there not only when your loan closes, but should also provide you with ongoing service to assist you in managing that debt over time.

If you have yet to find a Mortgage Lender you love and trust, please contact me at 503.931.4490! I would love to help you realize your dreams!

By the way, be sure to ask about our Homes for Heroes program! If you or anyone you know is a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST, MEDICAL ASSISTANT, CNA, Etc, you may qualify for our Homes for Heroes program! You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

FHA Changes That Make It Easier To Qualify

FHA Credit Policy Change Makes it Easier to Qualify 

Effective immediately, policy changes in the way the Federal Housing Administration (FHA) views certain derogatory credit will make it easier for some borrowers to qualify for purchasing a home. Allowances will be made for certain “Economic Events” resulting in poor credit ratings, which previously would cause borrowers to be ineligible.

What do the new rules say? Potential borrowers who experienced a decrease of income by 20 percent or more for at least six months, and that resulted in serious derogatory credit such as a short sale, foreclosure, or bankruptcy, may still be eligible as long as:

1. The loss of employment or income was due to an extenuating circumstance beyond his or her control and can be documented;
2. A satisfactory credit history has been restored for a period of 12 months; and
3. Housing counseling has been completed.

Other changes effective October 15, 2013 include amendments to underwriting guidelines in the area of outstanding, prior judgments and collections, including the exclusion of unresolved medical collections from the underwriting decision.

If you or anyone you know has been previously denied for a home loan based on an isolated credit incident, I may be able to help! And I’m always happy to answer any questions you may have.

By the way, be sure to ask about our Homes for Heroes program! If you or anyone you know is a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST, MEDICAL ASSISTANT, CNA, Etc, you may qualify for our Homes for Heroes program! You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

Why Rent When You Can Buy?

 

Why should I buy, instead of rent?

Paying rent is like lining your landlord’s pockets — you pay while they build equity, write off the interest on their mortgage and deduct their property taxes. When you own your home, it is an investment. Over the long-term, the worth of a home generally increases, which means your home may make you some money when you decide to sell, or may play a huge role in your retirement. Plus, your home is yours, to paint, decorate and renovate any way you like! We have many amazing loan programs to help your home buying dreams come true.

What is the difference between a mortgage broker and a mortgage lender?

A mortgage broker is a middleman who acts as a go-between for the borrower and the lenders. We are a direct lender, so you’re dealing directly with the company that will actually lend you the money to purchase or refinance your home.

What is my first step in obtaining a home loan?

Getting pre-qualified is your very first step. You’ll give me information on your income, credit and bills, and we’ll tell you whether you may qualify for a loan and a general idea of how much it might be for. We’ll discuss any questions you have about mortgages and financing too. Once we determine that you should be able to secure financing from us, we can put you in touch with a real estate agent who can help you find that perfect home!

When you are pre-approved, you’ll know exactly how much home you can afford, which will make your home shopping easier (and less painful since you won’t waste time looking at — and falling in love with — houses that are out of your range). Where pre-qualification is a sort of educated guess of the buyer’s purchasing power, pre-approval says you would definitely be approved for the loan.

It’s important that we look at your total financial situation and decide what payments you will be comfortable with. Buying a home is the biggest purchase most people make in their lifetime. Let’s do it the right way.

By the way, be sure to ask about our Homes for Heroes program! If you or anyone you know is a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST, MEDICAL ASSISTANT, CNA, Etc, you may qualify for our Homes for Heroes program! You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

ZERO Down Home Loans Available In Salem Area

I know, it’s hard to believe that the USDA Rural zero down payment program can be used in the around the Salem Oregon area, but it sure can! It can be used everywhere outside the urban growth boundaries of Salem and Keizer. Small communities such as Stayton, Sublimity, Aumsville, Woodburn, St.Paul, Monmouth, Independence, Turner, Jefferson, Scio, Silverton, Dallas, Molalla, Aurora, Hubbard, Mt. Angel, Amity, Sheridan, Philomath, Dayton, Yamhill, Gervais, and many other towns are eligible for this zero down payment loan.

One of the biggest difficulties many first-time home buyers face is a lack of down payment and the necessary funds for closing costs. However, even with the widespread availability of “no-money-down programs” evaporating in the credit crisis, one national no-down payment program still remains: USDA Rural Development home loans, and we specialize in it!

Guaranteed by the USDA (United States Department of Agriculture), this program might make you think that you have to buy farmland or live “in the country” to qualify, but this is often not the case. In fact, you might be surprised to see just how many neighborhoods actually do qualify as rural development areas. For this program, the term “rural” really applies to those areas with a lower population or fewer homes, not necessarily those areas and neighborhoods far outside of the city.

There are several benefits of the USDA loan program besides no money down. The program also does not require the large monthly mortgage insurance payment (as FHA does), and the seller is allowed to pay all of your closing costs and pre-paid items up to 6.00% of the total sales price of the property. And while this is great news for first-time home buyers, it’s important to note that you don’t have to be a first-timer to qualify for a USDA loan.

Other than the location of the property you’re seeking to buy, there is one other limitation to this valuable program that you must consider: your income. Luckily, however, these numbers have recently increased to allow more potential buyers to take advantage of this special program.
The USDA program is edible in many areas, Rule of thumb is any town with less than 20,000 population, but as you read above, there are some exceptions.  You can always contact us to see if a home you like is eligible.

To find out more about USDA loans, give us a call. We can have an answer as to whether you qualify for this program in just a few minutes. 503.931.4490. I can also be reached via email at tnewton@englending.com

Be sure to ask about our Homes for Heroes program!

If you or anyone you know is a TEACHER, ALL MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST, MEDICAL ASSISTANT, CNA, Etc, you may qualify for our Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

 

The 5 Top Reasons People Buy

This is wonderful information from the KCM website that shows “why” people buy homes.

As you can see, the West is expected to increase in pricing very soon (it’s already happening) so, NOW is the time to buy or move up to that new home! Contact me, I can help with your loan pre-approval!

If you or anyone you know is a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST, MEDICAL ASSISTANT, CNA, Etc, you may qualify for our Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

 

 

USDA vs. FHA? You Decide Which Is Better

USDA or FHA? Which loan is better? 

Time again and again we always get asked which loan is better? What are the differences between these two programs and which one is best for my situation?

First it’s important to realize that both FHA and USDA are Government Home Loan Programs. This means that the Government insures or guarantees the mortgage.  This is a huge advantage when looking for a home loan. By the government guaranteeing the mortgage this can mean easier qualifications for you, less money out of pocket, and lower interest rates.

Here are the facts:

USDA Loans:

• 100% financing. No down payment
• Lower credit scores accepted
• Can use rental history in lieu of credit
• Income cap per the county
• No purchase price cap
• Small Mortgage insurance monthly payment

FHA Loans:

• Eligible for rural and urban areas
• 3.5% down payment needed
• Lower credit scores accepted
• Can do repairs or Improvements (with 203K loan)
• No income cap
• Loan cap usually around $295,000 (more in some counties)
• Can be used for mobile home, building a home
• Hefty Mortgage insurance payment (over 3 times that of USDA Mortgage Insurance)

In summary, If you are looking for a home outside Salem, Keizer, Portland, Albany and Corvallis, I would opt for the USDA loan. It’s a great loan program for places like, Silverton, Stayton, Dallas, Woodburn, Independence, Monmouth, Aumsville, Jefferson, Sublimity, Turner, Scio, Mt. Angel, Molalla, Aurora, Wilsonville, Sherwood and many other small communities. 

You may also be eligible for additional savings If you are a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST MEDICAL ASSISTANT, CNA, Etc, you may qualify for our Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

If you have more questions please contact us at 1 (888) 202 4479

 

♦ Do You Owe More Than Your Home Is Worth? We Can Help! ♦

♦ HARP ♦

Help for Homeowners  Making Home Affordable Refinance Program

Finally, there is help for homeowners that are underwater on their mortgages:

Can you answer YES to any of these questions?

• The value of my property has fallen.
• I owe more than my home is worth.
• I have been turned down for a refinance loan in the past.
• I am having trouble making my house payments.
• I have an adjustable rate mortgage.
• I don’t qualify for loan modification.
• I can’t afford my mortgage payment.

Well, then we may have the loan program to help you lower your monthly payment significantly.

The Making Home Affordable Refinance Program is a government backed mortgage program that allows most borrowers with existing Fannie Mae and Freddie Mac loans to refinance their homes even if they owe more than their home is worth, have an adjustable rate mortgage, have been turned down for a refinance loan or loan modification in the past, or just can’t afford their mortgage payment anymore.

HARP Phase II’s goal is to help you stay in your home by making it more affordable for you to continue to make your monthly mortgage payments and keep your dreams of affordable home ownership alive. We can help you qualify for the HARP Phase II program if we can show that you are receiving one or more of the following benefits:

• A lower monthly mortgage principal and interest payment;
• A lower interest rate;
• A shorter amortization term (a loan for fewer years); or
• A more stable mortgage product; for example, movement from an ARM to a fixed-rate mortgage.

So if you’re looking for a lower interest rate, a fixed mortgage, a lower payment, or a better mortgage then refinancing your home through the Making Home Affordable Program might be just the right answer for you.

How do I know if I’m eligible for HARP?

You may be eligible for HARP if you meet all of the following criteria:

1. Your mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
2. Your mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
3. Your mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
4. The current loan-to-value (LTV) ratio must be greater than 80% (even if you owe more than twice what your home is worth you can still qualify).
5. You must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months.

HARP is a critical part of the Obama Administration’s broad strategy to help homeowners avoid foreclosure, stabilize the country’s housing market, and improve the nation’s economy. Eligible homeowners can lower their monthly mortgage payments and get into more stable loans at today’s low rates.

Additionally, in an effort to be responsive to the needs of today’s homeowners, there are also options for homeowners who owe more than their homes are worth by providing options with more lenient underwriting.​

After March 2012, you can secure a HARP refinance loan from any FannieMae or FreddieMac approved lender. For more information about HARP or any other loan program, please contact us at 503.931.4490.

You may also be eligible for additional savings If you are a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST MEDICAL ASSISTANT, CNA, Etc, you may qualify for our Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

 

A Must Read For First-Time Home Buyers

5 Tips for First-Time Home Buyers

Here’s a great article I came across by Becky Flanigan

 

Buying a first home can be a scary, confusing and stressful process. Many would-be buyers are understandably nervous at the prospect of making the largest purchase of their lives. Rather than diving in and hoping for the best, you should prepare carefully before you begin the house search.

Following some useful tips will help you turn an overwhelming and intimidating experience into an exciting search that yields the right home!

1.) Establishing a Realistic Price Range

A common mistake among first-time home buyers is purchasing more house than they can afford. You should not rely on banks to determine what you can comfortably spend on a new home. Banks are adept at determining the amount of monthly debt in the form of mortgage, insurance, credit card, student loan and auto loan payments. They have no way of knowing, however, what you spend each month on groceries, entertainment and utilities.

You should make a list of all monthly expenses, excluding rent or your current mortgage payment. Whatever is left after monthly expenses is the amount available for a mortgage payment and housing expenses such as taxes, insurance and home maintenance. Carefully consideration of your budget saves time by weeding out homes that you cannot afford and guards against overspending.

2.) Seeking Pre-approval

Getting pre-approved for a mortgage prevents a deal on a dream home from falling apart due to failure to obtain financing. You should compare loans from several lenders to see which one best suits your needs. A pre-approval letter will give you some power to negotiate on a home’s price because the seller will view a pre-approved offer more favorably than an offer that comes without lender pre-approval.

Keep in mind that pre-approval is different from pre-qualification. During pre-qualification, the lender estimates what you can afford. Pre-approval is a more involved process in which the lender looks at your credit report and performs an extensive financial background check. At this point, you will get a good idea of the mortgage interest rate as well.

3.) Setting Priorities

You should compile a list of what you need and want in a house. Needs might include the number of bedrooms, square footage, high-quality schools and commute time. These needs are aspects of the house that either cannot be changed or cannot be changed without substantial cost to you.

Wants, on the other hand, are something you would like and that can be changed. Wants may include a pool or hot tub, landscaping, finished basement or hardwood floors. Making a list of wants and needs helps you focus on what is really important in a house, narrowing the list of prospective homes. Ideally, the new house will include all of the needs and a few wants.

4.) Choosing the Right Neighborhood

Crime statistics, insurance rates, property taxes and school quality are important considerations for you. Because the neighborhood makes up a large part of a home’s value, take your time to find exactly what suits your needs. You should also consider job commute, traffic during rush hour and proximity to amenities such as shopping, churches and libraries.

Driving through the neighborhood at various times during the day and night will provide a more complete picture of the location. Don’t forget to talk to potential neighbors, who can be a good source of information regarding the neighborhood and residents in the community. Take note that bad neighbors can bring down the value of a house.

5.) Finding the Right Home Inspector

You will also need a professional home inspection. Even new houses may present costly problems evident only to a home inspector.

You should talk to several inspectors before hiring one. You should ask about the inspector’s qualifications, scope of the inspection, how long it will take and the nature of the report you will receive at the end of the process. Main areas covered by the inspection should include quality of construction, integrity of the foundation and condition of plumbing, electrical, heating and cooling systems. If the inspection uncovers serious issues, such as cracks in the foundation, you may decide to back out of the contract or ask the seller to repair the problem.

If you (or anyone you know) are a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST MEDICAL ASSISTANT, CNA, Etc, you may qualify for the Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

 

Still Searching For A Zero Down Loan?

Great news from USDA and your search for a Zero down loan

On March 26, 2013, “H.R.933 — Consolidated and Further Continuing Appropriations Act, 2013” was signed by the President.

It provides USDA Rural Development funding through September 30, 2013.  This same legislation also preserved the mapped locations of USDA loan eligible rural areas from September 30, 2012 to September 30, 2013 for rural housing programs.

Obviously this is very good news for first time home buyers! The USDA Rural Development “Eligible Location” map is going to stay the same for a while. You already might know that the approved locations for the USDA home loan program were scheduled to be changed this very month, but due to the above legislation, it isn’t going to happen.

USDA regularly reviews locations and makes these alterations based on statistical material from the U.S. Census reports. This year, such normal map changes have been delayed.

So, first time home seekers wanting 100% financing have the opportunity a bit longer to find that perfect home, but now is the time. If you are looking to purchase a home in a more populated area, we advise you to do it soon while the USDA map locations are maintained.

This spring is shaping up to be a great time for house hunting and mortgage seeking. If you have questions either about the above announcement from USDA, HARP, FHA or other mortgage issues, including our very popular Homes for Heroes program, we’d be very happy to chat!

If you are a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST MEDICAL ASSISTANT, CNA, Etc, you may qualify for the Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.