Right now as most people know it is a buyers market, but most are expecting that the market has pretty much hit bottom. Not only that but as the economy improves home loan rates will most likely climb as well. For those of you who are Veterans like myself, and looking to purchase a home, the VA Home Loan Guarantee program may be your best bet. I am currently buying a home with no money down, and the closing costs are rolled in. There is no Mortgage insurance to pay, because you pay an upfront "VA Funding fee, which can also be rolled into the mortgage. If feel this may be a good option for you here are some things to consider.
If you have the money for a down payment it is always better to go that route. Your mortgage payment will be cheaper and there will be no need to pay the VA Funding Fee.
The VA does not provide or guarantee that you will get a loan. You have to have a reasonable credit rating and a Income to Debt ratio of 41% after your mortgage payment is calculated. the VA is basically guaranteeing your downpayment, which is why there is no PMI.
VA loans limits vary depending on where you live, but right now is Typically $417,000 in major metropolitan areas.
For more info check with your lender and the VA's website: http://www.homeloans.va.gov/
*right now I am waiting on appraisal and final loan approval, but the tenative closing date is July 10th.
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