VA Loans and Mortgages Future Military Homeowners

  • VA Loan Terms Stop at 30 Years. Here's Why

    VA Loan Terms Stop at 30 Years. Here’s Why

    You can get a VA loan for 30 years, and you can get a VA mortgage for 15 years, but you can't get VA financing for 40 years. What's up with that? Until the past few days, you might have gotten a non-VA mortgage with a 40-year-term, but that's no longer possible under new rules just issued by the federal government. From this point forward, the longest new home mortgage is effectively limited to 30 years. It's n…

  • What Does the Fiscal Cliff Deal Mean fo VA Borrowers?

    What Does the Fiscal Cliff Deal Mean fo VA Borrowers?

    After months of debate and political jousting, the fiscal cliff debate has now ended, and the results look like this. First, from a real estate and mortgage perspective, VA and military families did well. Second, the debates aren't over. For the typical household with a VA loan, the debate results found in the American Taxpayer Relief Act of 2012 (H.R. 8) look like this: The Mortgage Interest Deduc…

  • Why Cash is King in VA Loans

    Why Cash is King in VA Loans

    One of the great curiosities of the VA loan program is that you can get a mortgage with little or no cash. The VA allows lenders to make loans with no money down, a huge cash savings for qualified borrowers. In the usual case VA borrowers only need cash for closing costs and points or any difference between the loan amount and the purchase price. VA loans without cash are a practical reality in situations where a …

  • Why Military Families Get More Mortgages

    Why Military Families Get More Mortgages

    The 2012 FHA annual report is out and it says there are a lot of VA loans. Actually, it doesn't "say" any such thing, but if you read between the lines, that's the plain message. In the fiscal year that ended Sept. 30, the FHA insured 2,575,653 loans; that's 27.2 percent of the market. The report also says that the VA guaranteed 7.4 of all new loans during the same period, or roughly 700,000 mortgages. …

  • Why VA Loans Have The Least Borrower Risk

    Why VA Loans Have The Least Borrower Risk

    The past few weeks have been a time of celebration for the Department of Veterans Affairs. The festivities are all about VA loans – since 1944 the government has insured 20 million mortgages for vets and their families. Today there are some 1.7 million VA loans outstanding and they have a market value of about $284 billion. Just in 2012 the VA has guaranteed an additional 540,000 mortgages. These are big numb…

  • Can You Get A VA Loan With An 8 Percent Discount?

    Can You Get A VA Loan With An 8 Percent Discount?

    When it comes to discounts, everybody would like a little bit more. That's just the way it works in commerce and business, and it's also true when it comes to VA loans. The good news is that the VA rules allow concessions and contributions which are worth as much as 8 percent of the property's appraised value. Whether a VA borrower can get some or all of such discounts depends on the bargaining process and the des…

  • Should Veterans Get Free Home Appraisals?

    Should Veterans Get Free Home Appraisals?

    A new mortgage proposal is now floating around Washington, one which intends to make the lending process clearer and less confusing – but not for VA loan borrowers. The idea comes from the Consumer Financial Protection Bureau and the intent is pretty good: mortgage borrowers should have a solid understanding of their loans and to do that lenders should make appraisals automatically available without cost at leas…

  • Why VA Loans Matter In The Presidential Election

    Why VA Loans Matter In The Presidential Election

    The election season is here and one of the groups that should most interest politicians are the military households that have VA loans and other benefits from their service. To understand the importance of the military community there are two factors to consider. First, as November looms ahead it's usually argued that there are nine swing states which will determine the presidential election. These stat…

  • Should VA Loans and FHA Mortgages Be Combined?

    Should VA Loans and FHA Mortgages Be Combined?

    Are VA loans and FHA mortgages alike? How about VA mortgages and financing from the Agriculture Department's Rural Housing Service (RHS)? Such questions are not far-fetched. A new report from the Government Accounting Office says the time is ripe to "increase collaboration and consider consolidation." But is this really a good idea? After all, could not the government save a few dollars and cut the deficit by c…

  • Are There Too Few Homes For VA Mortgage Buyers?

    Are There Too Few Homes For VA Mortgage Buyers?

    The latest worry on the real estate front is that VA borrowers face a shortage of homes to consider. This seems like an unusual concern given that during the past few years there have been major foreclosure centers where it's been tough to give away a house. But now, according to the National Association of Realtors, we have an inventory shortage. “What we need now is additional inventory in the lower price r…