VA Certificate of Eligibility - An Infograph

Are you eligible for a VA home loan?

View this infograph below and find out! Want to read the whole article? Check out http://www.salending.com/va-certificate-of-eligibility.

Realtors: Introducing FNMA Renovation Loans

We’ve all seen the shows… I stay up late at night watching “Property Brothers” on HGTV. I admit it. I am hooked. I love to imagine the possibility of someone getting a really good steal because they have vision and a good understanding that you can pretty much take any house and turn it into your dream home. I love watching a total dump be transformed into a model home or something even better.

I know that you all have clients like this…they have these grandiose ideas of what they want in a home but have absolutely no clue as to what this type of homes actually cost. Their budget is $200,000 but the only house that has all of the items on their “must haves” is actually about $500,000. They are floored. Disappointed. Disillusioned. They think that they have to settle for something much less and most of them actually do.

Your clients may say something like, “This home is perfect…BUT we sure wish that it had another bedroom…” or “This house has great bones and it is in a great area, but the last time anyone updated it was 1972…” Do you have a listing that you have as a “CASH ONLY” house because of its foundation problems or perhaps smells of the hundreds of cats that used to inhabit the house? Does your client want a foreclosure that needs a LOT of work? Does someone you know want to purchase a fixer-upper in a great area of town without having to pay a premium for an already updated home?  Do you LOVE the house but wished it had a pool? If you have answered YES to any of these questions then, well do I have a deal for you!

Let me introduce the FNMA Renovation loan. It is a loan that combines a home purchase or refinance with home improvement financing in one loan with one closing. This type of financing provides a very convenient way for borrowers to make renovations, repairs or improvements for up to 50% of the “as-completed” value.

Popular improvements this year have been things such as:  an in ground pool, foundation repair, new roof, addition of bedrooms, total inside renovation and updating of homes…you name it and you can pretty much do it as long as it is a permanent type of repair/renovation/addition.

Here are some highlights:

• On a purchase, the maximum loan amount is calculated by using the lower of up to 90% of the purchase price plus the cost of improvements or the appraised value with the improvements completed.

• On a refinance, the maximum loan to value is 90% of the “as-completed” value (current value as if the improvements were already done).

• The maximum loan amount is $417,000.

• Completion of improvements must be completed within 9 months of closing.

• The purchase contract is written just like any other contract, but with a longer option period so that the buyer has time to get bids and pick out a contractor. The closing timeframe is typically 45 days from start to finish.

• There is one closing and the interest rate is locked at the time of contract.

• Payments are made on the full loan amount.

• Single family homes only and they must be owner occupied or second homes.

• The contractor must be approved by Benchmark Bank. We do a thorough check to make sure the contractor’s references, insurance etc. are valid.

• All draws must be signed and agreed upon by both the contractor and the borrower

• If there are excess funds left over after the renovations are completed, they will be applied towards the balance on the existing loan.

This is definitely one of the most under-utilized, but coolest loans out there today when it comes to renovations. It differs from the FHA 203k loan in the sense that there is definitely more wiggle room with the type of renovations that can be done. Additionally, if you have a client that actually wanted to put money down, the monthly MI options (or the ability to NOT have MI) far outweigh the FHA 203k. You can opt for 20% down on a renovation loan to avoid the monthly MI,whereas on and FHA loan, the MI NEVER goes away. This loan has definitely become more attractive especially with the new changes on FHA loans.

Affiliated Mortgage Home Loan Division of Benchmark Bank is very proud to be able to offer this loan to our clients with great interest rates. If you have ANY questions, please call Jennifer Guidry, NMLS #323935, at 210-491-2502 or visit the website at SALending.com

USDA Home Loans

Texas USDA Mortgage Program

By Jennifer Guidry

Within the vast state of Texas, there are many areas (even seemingly within the city) that may qualify for a loan program offered through the United States Department of Agriculture, also known as a Rural Development or USDA loan. In order to qualify for a USDA loan in Texas, borrowers will have to meet certain requirements based on the area in which they are purchasing or refinancing their home. You can find out if your area qualifies by checking out the USDA Rural Development website and searching for your current address or the address of the property you are interested in purchasing.

After you have determined whether your property address is in an approved location, you will need to meet other qualification guidelines. One of these is your income. There are limitations depending on where you live and how many people will occupy the home. You can view a list of USDA income requirements by area for Texas on this PDF provided by the USDA Rural Development website.

....More on USDA Loans

Texas Home Refinance Comparison

VA & FHA Refinancing Vs. Streamline Refinance

By: Jennifer Guidry

With now being a great time to refinance your mortgage loan, I’m sure you have heard all kinds of buzz words about the different kinds of refinancing available to you. What does it all mean? This blog is to help you understand the difference from a VA or FHA refinance as compared to a Streamline Refinance.

Refinance vs. Streamline Refinance Programs 

Available through the FHA and the VA 

There are many options available to you if you are looking to refinance your mortgage loan. Here, the focus lies on two different types of loan programs. They include the FHA Refinance vs. the FHA Streamline Refinance. From there the focus will shift to the VA Refinance vs. the VA Streamline Refinance. Obviously you have many government backed programs to choose from for your refinance needs.

FHA Loans

First, you must understand FHA is and what they do. FHA stands for the Federal Housing Administration. They are a government entity that provides insurance to lenders in case a borrower defaults. The FHA is not the lender, they only insure the loans. The lender must meet specific requirements outlined by the entity in order to qualify for the insurance. Now you need to recognize the two biggest differences between the programs and how they will benefit you. 

FHA Refinance

A regular FHA Refinance offers the borrower the opportunity to get a better interest rate on their home loan (if you have another type of mortgage, you can refinance into an FHA loan). The FHA Refinance Program benefits you if your home was lucky enough to increase in value during the mortgage crisis. The programs beneficial feature is to refinance your current mortgage into a new mortgage.

FHA Streamline

The FHA Streamline Refinance program benefits you by reducing the interest rate on your current mortgage. There is far less paperwork involved which reduces the amount of time it takes to close the loan. The program saves you time and money and lenders can quickly cut down the amount of time it takes lenders to work on your new loan. In order to be eligible for an FHA Streamline refinance, you must already have an FHA loan. You do not need to have equity in your home and are not required to provide an appraisal, but you do need to have a good history of making your mortgage payments on time.

VA Loans

The VA is the Veterans Administration. They too are a government entity that provides mortgage insurance to veterans along with other services. VA loans are only provided to Veterans and military service members that meet a certain criteria, but offer some of the most attractive terms as far as being financed up to 100% of the purchase of a home.

VA Refinance

The VA Refinance Program allows you (if you are a veteran) to refinance up to 100% of the value of your home. You are able to refinance under a VA loan if you have another kind of loan initially, but you must first meet the requirements of the VA and get a certificate of eligibility.

VA Streamline Refinance

The VA Streamline Refinance Program is also known as the VA to VA loan. The primary goal of the program is to continue to lower the original principal amount of the loan and to obtain a lower interest rate and payment amount. You cannot take cash from the equity in your home through this program. This program has a lot less paperwork as well which leads to a quicker close on the loan. This program also does not require an appraisal on the home.