Crest Funding



	VA LOAN SPECIALISTS! We take great pride in helping Veterans buy or refinance using the financing that is available to them. Crest Funding will walk you through what otherwise could be a complicated process. What is a VA Loan? What are the benefits to a VA Loan? Who qualifies for VA financing? What are the costs associated with VA financing? What type of properties will VA do? How hard is it to qualify? What is a VA Loan? A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs. The loan may be issued by qualified lenders. The VA loan was designed to offer long-term financing to American veterans or their surviving spouses (provided they do not remarry). The basic intention of the VA direct home loan program is to supply home financing to eligible veterans in areas where private financing is not available and to help veterans purchase properties with no down payment. The VA loan allows veterans 100% financing without private mortgage insurance or a separate 20% second mortgage. A VA funding fee of 0 to 3.3% of the loan amount is paid to the VA and is allowed to be financed. In a purchase, veterans may borrow up to 100% of the sales price or reasonable value of the home, whichever is less. Since there is no monthly PMI more of the mortgage payment goes directly towards qualifying for the loan amount, allowing for larger loans with the same payment. What are the benefits to the VA loan? • No down payment requirement • Lenient qualifications • Low interest rates • No mortgage insurance • No asset requirements • Easy to refinance • Up to 6% Seller Paid Closing Costs (ask us how) Who qualifies for VA financing? You are qualified to apply for VA financing if: • You have had 90 days or more of active duty service during wartime • You have had 181 days of active duty service during peacetime • You were discharged for circumstances other than dishonorable • You are currently active duty personnel and you meet the above service requirements • Selected Reserves & National Guard – Completed 6 years as member of active unit – Honorable discharged & retired – Service connected disability • Un-remarried spouse who died while in Service • Spouse of service person MIA or POW • Discharged for service connected disability • Reduction in force after 20 months of 2 year enlistment What are the costs associated with VA financing? A VA funding fee of 0 to 3.3% of the loan amount is paid to the VA and is allowed to be financed. • The VA funding fee is required by law • Funding fee pays towards part of the cost of the program • Helps offset cost of program to taxpayers • Can either be financed, paid in cash, or split • Can be paid by either veteran or seller • The following persons are exempt from paying the VA funding fee; – Vets receiving VA compensation for service connected disability – Vets eligible for disability but receiving retirement pay – Surviving spouse of Vet who died from in service or from a service connect disability – Active duty personnel that have been rated to receive disability compensation What type of properties will VA do? • Purchases, Rate & Term, 90% Cash Out, & IRRRL (Interest Rate Reduction Refinance Loan) • Owner occupied only • SFR & PUD • Condos (Need Project Approved) • 2-4 Units (6 month of reserve assets required) • New construction – Need 1 yr Builder Warranty & 10 yr Protection Plan • Leased land (Need Lease Approved) • Manufactured homes - Not Offered How hard is it to qualify? • VA can only guarantee a loan when verified that: – The vet & spouse are a satisfactory credit risk – They have present & anticipated income to repay the loan – Can only use income that is verified (Full Doc) • 2 year employment history is required • Standard written documentation is required – Verification of employment (VA 26-8497), 30 days pay stub, W-2 for last two years, – 1040’s (tax returns) may be needed. • Bankruptcy? – Chapter 13 bankruptcy – 1 year satisfactory payments to court required + Judge approval –Chapter 7 - 2 years from discharge date