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VA Guaranteed Home Loans

New Jersey VA Loans

What is a VA – Guaranteed Home Loan?

They are Loans made by private lenders (banks, savings and loans, and mortgage companies). There loans are made to eligible veterans for the purchase of a home for themselves and their families. The home you purchase must be a 1-4 family house that you will occupy. Investment property purchases are not allowed. Again, the home must be for your own personal use.

VA does not actually make any loans. The Veterans Administration only guarantees the loan. They guarantee the lender who makes the loan will not lose money if the payments are not made. This encourages lenders to make loans to veterans with more favorable terms, such as 100% financing, low rates, low fees, and reduced closing costs. The guarantee is not automatic. You must still qualify for the loan based upon the lending guarantee guidelines set by the VA. This insures they are only backing qualified borrowers and lessens their risk of loss.

What can this Loan be used for?

A VA Loan can be used to buy a home, condominium, townhouse, or co-op. It may also be used to build a home, repair or improve an existing home, add energy efficient improvements (solar heating/cooling systems, water heaters, insulation, storm doors and windows, etc.), or to refinance a home to reduce the interest rate.

Who is Eligible for a VA Loan?

  • A Veteran (served 181 days during peacetime or 90 days during war)
  • Reservist or National Guard (served 6 years)
  • A Veteran Married to a Non Veteran
  • Two Married Veterans
  • Unmarried Surviving Spouse of a Veteran (Veteran must have died due to service or service related causes)
  • Spouse of any member of the Armed Forces serving active duty who is listed as M.I.A or a P.O.W. and listed for more than 90 days

What are some of the advantages of a VA Loan?

  • Zero Down Payment
  • Limited Closing Costs
  • No Monthly Mortgage Insurance
  • VA Funding Fee can be Financed
  • Mortgages are Assumable
  • Easy Refinancing to Lower Rates

How Do I Prove that I am Eligible?

The good news is now most information can be accessed online in a few minutes! A lender will need your Certificate of Eligibility.

Full instructions are available on how to register and access your Certificate of Eligibility (COE) from the United States Department of Veteran Affairs on their website. There”s also an instructions link on my website (below).

Thank You for Your Service to Our Country.

Information on the Modification of Home Loans

The following paragraphs contain information on modification of home loans and how it can prevent a foreclosure to your home. In most cases this option is for those people who can no longer afford the monthly mortgage payments, but are able to pay a lower amount. The loan modification is basically revising the terms of the initial agreement of payment.

The terms are revised in such a manner as to lower the monthly payments on the mortgage to ones that you can afford. The two ways this can be done is by either lowering the interest. If after lowering the interest you still cannot afford the payment; then you can negotiate for an extension of the payment period or a reduction in the amount owing on the principal debt.

The advantage of home loan modification as opposed to re-financing the loan is that you are not taking on the weight of another debt. Taking on another loan will most likely make the situation worse. This is because you are already having problems with payments; a refinancing loan will have higher interests and higher payments. Defaulting on these payments could result in you losing your home. It’s always best to have enough information on modification of home loans when you make decisions.

You are not in the best position to approach your lender and try and convince him to reconsider the terms of your deal. There are companies that specifically deal with the modification of mortgage payments. They will be able to come up with a workable situation that you and your lender can agree to.

These companies have all the information on modification of home loans that you would need to know. Some are better than the others. Look for one that will keep in you in your house whilst you improve your financial situation.

Mortgage Brokers – Why You Should Consider Using a Mortgage Broker For Your Home Loan

A mortgage broker will save you time, effort and most likely money in selecting a home loan. To do this, they will do the following:

Assess your needs

A mortgage broker takes the time to discuss your needs and circumstances with you. This gives the broker the opportunity to determine which type of home loan is most suitable depending on your current needs and financial circumstances.

As part of the process, you will need to provide documents to support your identity and financial situation. This includes a 100 point check list for identification, personal bank statements to demonstrate savings (if applicable), tax returns, pay-slips, any outstanding loans, statements, etc. Your mortgage broker will advise you of the relevant documents that you will need to bring with you to your meeting to facilitate this process.

Once your mortgage broker has a clear understanding of your financial situation and goals, they will discuss the various home loan products available. They will provide you with home loan comparisons and inform you of proposed mortgage repayments and any upfront and ongoing fees.

Find a suitable home loan for your situation

Your mortgage broker will search their database containing hundreds of home loan products from their panel of approved lenders. This will include major banks, smaller banks and other lenders. This database is constantly updated and has details of the latest deals. Sometimes, they can have access to some exclusive mortgage loan products which are not available elsewhere. The mortgage broker will then recommend a product or products, which suit your needs. You should also be provided with a copy of the mortgage lenders comparison rate schedule. Comparison rates include both the interest rate and fees and charges relating to a loan and are a tool to help you identify the true cost of a loan.

Manage the process

If you wish to proceed, the mortgage broker will help you to complete the necessary paperwork and liaise with the lender on your behalf. This will include the completion and submission of your mortgage loan application and the on-going communication between all parties until your home loan is approved and settled. Your Australian mortgage broker is also required to inform you of their complaints process. This is called an Internal Dispute Resolution procedure and all members of the MFAA (Mortgage & Finance Association of Australia), COSL (Credit Ombudsman Service Limited) and BFSO (Banking and Financial Services Ombudsman) have requirements in this regard.

Provide advice at every step

There are many steps in the mortgage loan process and your mortgage consultant will help you from your initial steps, such as getting pre-approval (where your loan is “approved” based on certain conditions such as loan value) right through to possible refinancing at a later stage.