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Liberty Mortgage, Inc.
509 W. McKinley Avenue
Mishawaka, Indiana 46545
Telephone 257-0629
or 888-568-1786
Fax 574-257-0632 |
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The Veterans Administration was created shortly after WWII to provide $0 down financing for veterans,
active duty, reservists or national guard. Your eligibility amount will be determined by how long you've
served. VA does not credit score, however, if you've filed bankruptcy, you have to be out for two years
with no bad credit since the discharge. If you've had bad credit, you have to be clean for the last 12
months. Seller can pay up to 4% of your loan amount towards your closing costs. When you make application,
you have to bring in your DD214 or an existing Certificate of Eligibility. We will need between 10-14
days to send it to Cleveland, Ohio, to get your eligibility updated. After you close on your home, the
VA will send you back your Certificate with any unused eligibility. Keep it because when you sell your
house and you want to use VA again, the Certificate will have to be sent back to Cleveland to be updated.
VA properties have to be clean from defects and you can price any repairs into the contract. All
repairs mentioned by the appraiser or by you the buyer will have to be done before closing. The current
maximum loan amount on a VA loan is $203,000.
VA does not have mortgage insurance, but they do
have a "funding fee." If this is your first VA home it is 2% of the loan amount, financed into the loan
over the base loan amount. If this is your second VA home, it is 3%. These amounts are for vets or active
duty.
Two important things to remember about VA loans: 1) If you are not married, your boyfriend's
or girlfriend's income cannot be used to qualify. 2) They figure ratios quite different. VA takes your
gross monthly income and minuses out federal, state and social security taxes, then all your minimum
debt payments per month including your new house payment, then subtracts a monthly amount for house maintenance
and utilities based from a chart of age and square footage of the home, which then results in a net figure.
This figure is charted on a "residual income" chart, which is based on family size (including children)
and loan size and if your net is not equal to or greater than the amount the chart says you need, you
will not get approved. This may be quite different than the 41% ratio used in conventional underwriting.
Terms Available:
15 or 30 year fixed
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