VA Loans Figures in 2015 surpasses the strong performance seen in 2013

The Home Loan Guaranty program of the U.S. Department of Veteran Affairs (VA) has seen a staggering rise in the numbers in 2015. Experts suggest that the strong performance was due to the heavy refinancing on low interest rates.

Compared to the fiscal year 2014, VA Loans grew at a rate of 44% by numbers and at a rate of 54% by volume in the fiscal 2015, which ended on September 30, 2015.

The VA Loan numbers in 2015 surpassed the figures achieved in 2013. Although, most other loan programs did see a rise in volume and numbers compared to 2014 but failed to surpass the levels achieved in 2013.

The number of VA Loans in 2014 was 438,398 and in 2015, the figure stood at 631,142, which was a growth of about 44%. VA Loans also grew on volume as well. In the fiscal 2014, the balance was about $99.6 billion and in 2015, the balance was about $153.5 billion which was an increase of 54% compared to 2014.

Over the past seven decades, the Department of VA has provided the guarantee to the home loans taken by eligible veterans, active duty personnel of the U.S. Armed Forces and their surviving spouses. The loan program comes with several benefits like zero down payment, lower interest rates and others.

The Department of Veteran Affairs has stated that it has witnessed a surge in refinance loans, due to the low rates.  The VA Interest Rate Reduction Refinance Loan, also known as the VA Streamline Refinance, accounted for almost 31% of the total VA Loans, by volume. The Department of Veteran Affairs has also stated that the volume of Purchase loans, which are the loans people take to buy a home, continue to remain strong

To benefit a greater number of people, the VA has also increased its outreach and reduced the processing time with a considerable amount of time. Around 66% of the borrowers are getting their Certificate of Eligibility (COE) instantly. Others, who are not processed by the system, are also getting their COE in just about two days.

These benefits along with several others make the prospect of getting a VA Loan quite lucrative for military home buyers in America. The leading VA Loan Lenders in the United States have their offices in almost every major state in the country. So, if you are looking for Texas VA Loans or VA Loans in California, it is always better to take the advice of such VA Loan experts and get the most out of the benefits of VA Loans.  If you are a current or a past member of the U.S. Military, then you can easily fulfill that dream of yours by getting a VA Loan with the help of the expert

Save Mortgage Rates on Texas VA loans through VLB

If you have heard about the VLB then we would like you to know that veterans and their families living in Texas, can take the help of this loan to save money on home mortgages. For a veteran who has been planning home ownership, taking the help of lenders who offer VA loan facility is the most convenient path towards home ownership However, they do not know that the additional savings they would be entitled to if they combine the VA home loan guarantee with the low interest loan rate of VLB, is something that no other authority can offer them. Veterans Land Board or the VLB lenders were the people who actually initiated the VLB home loans. The mortgages initiated by the VLB home loans are divided into three categories - FHA loans, conventional and VA loans. Taking advantage of the lowest interest rates as well as the down payment options in the market, can help them fulfill their dreams without taking things too hard on the pocket.

 Competitive rates of interest

The very reason why people should consider getting a VLB loan is because these loans offer competitive rates of interest. Veterans get low interest rates through this policy and those who apply for veteran disability discount can enjoy further benefits. If a Texas veteran has been offered a service-related disability rating of 30 or above by the board, can receive some great discounts on home loan rate. Such discount benefits on Texas VA loans are also available for surviving spouses as well.

Finding an appropriate lender

The entire procedure of applying for a VA loan and reaping benefits from it cannot be conducted without the help of a professional. Today there are several consultants and advisers in Texas, who have got complete knowledge in VLB and VA loans and in exchange of a nominal fee they offer helpful guidance to veterans. In most cases VLB asks lenders for one percent origination and long with one percent participation fee. Both are negotiable.

We would like to inform you that every home loan is different from the other. The fees that a lender charges mainly depend upon loan amount, credit rating and term of loan. Fees charged while closing the home loan include origination fees, down payment, mortgage insurance, earnest money and appraisal fees. This implies that if even if one is a veteran, he must always be prepared for certain out-of-the-pocket expenses. Nevertheless, you can always get in talk with your lender and spread out costs throughout the duration of the loan.

Eligibility requirements for acquiring a VLB

You can settle for any type of mortgages, but there is need for submitting some paperwork for qualifying for the loan. For participating in the home loan programs, you would need a score of around 620. Also, you should be a resident of Texas and should have the necessary documents to prove that you have been discharged from duty honorably. You should also get your status checked with VLB before getting certified for eligibility.

What Your Lender Can Ask You During a Mortgage Application Process

The Department of Veterans Affairs of the United States of America, cares for the citizens of country as well as their need to have a home of their own. A VA loan is something that has been designed to help veterans and their families find a home for themselves and ensure their security. Finding a VA approved lender may not be that difficult, but convincing the lender to sanction you a definite amount as loan can be more difficult than you think. You are probably aware of the various impediments including eligibility requirements, fixed income sources, good credit scores and several other such, that may come in your way of availing a home loan at low interest rates. However, you may not know that your lender can go full throttle over personal enquiries before they actually give a nod to your application.

Why would the lender ask you questions?

Simply because he is the person giving you money and he has the right to ensure that you have got the stability to pay him back. Enquiry, forms one of the crucial steps of a standard mortgage application process. Mortgage lenders ask certain basic personal questions that can often get a little too personal. But, in certain cases they are necessary. Like for example, one cannot hope to get a VA mortgage approved if he does not disclose his social security number. In case of home ready loans, one needs to present the source of his/her down payment. Now, though the lenders have got the right to ask you certain questions, they cannot tread into certain territories. So, before you actually take a leap it is better to know about the type of questions that your lender can ask and the ones that he cannot.

Questions the lender can ask

Let us take a quick look into the type of question you can expect your lender to ask.

Your marital status - He has to take a note of your eligibility requirements as in case of certain home loans like VA loans, the marital status of the borrower matters. In most cases, the lender wishes to know because a person who is divorced or is paying or receiving alimony from the other person will have his income affected. Naturally, he may or may not be in a position to repay the VA mortgages in time. Moreover, people living in “community property” states, need to present an account of the debts that both the spouses have.

Your age - The Equity Credit Opportunity Act offers fair treatment for all mortgage applicants. This implies that lenders cannot discriminate against borrowers. If your lender asks you about your age, it would be because he needs to ensure accuracy of the application. They also need to document that the borrower is at least 18 years of age.

Your lawsuit involvements - There are a series of questions that are asked for the purpose of declarations. These questions are in the form of ‘yes and no’. If you answer a ‘yes’ for lawsuits, that won’t turn your application down, but will only trigger a number of needful queries.

Questions about ethnicity - You can leave this question blank, but it does not harm to answer. This question is asked to help the government track whether the mortgage applications of a certain ethnicity are turned down or accepted.

Number of children - The number of children you have and their ages play a role in the process of loan approval. Your family’s monthly income, expenses and credibility to repay is calculated on the basis of it.

What he cannot ask

As we said previously, there are certain territories your lender cannot venture into. If he does, you can always object to it. For example, your Colorado VA loans lender does not need to ask about your health as that would be considered discriminatory by the government.

He should also not ask if you are planning a family. In case the borrower is pregnant, the VA loan lender in Colorado cannot ask about its details or whether one of the parents would stop working after the ‘child’ is born.

There are several other specific questions about VA loan in Colorado that overly-intrusive lenders ask. You, as the borrower, can object to it and deny from answering it.

How Can Assuming Someone Else’s Mortgage Help You in Home Purchase?

If you are a citizen in the United States looking to purchase a new home, you have probably already thought about applying for home loans. Whether you are a veteran of the armed forces or a just another home-buyer, you will need to have a mortgage if, of course, you aren’t paying in cash. As we know, mortgage costs are among the highest of the settlement statement fees that one needs to pay. However, that does not imply that you cannot hope to save on home purchase. Have you ever contemplated ‘assuming’ an old mortgage instead of taking a new one?

What does mortgage assumption indicate?

 The term ‘mortgage assumption’ is comparatively new and is therefore extremely confusing for first time home-buyers. Let us begin by saying that assuming mortgages is a great way of saving money. If you have come to know that the seller of your chosen home has financed his property using either of the VA, FHA or USDA backed mortgages, you can choose to ‘assume’ the amount of home mortgage due to the bank. This way you can have the same home mortgage rate as the seller.

If the buyer (you, in this case) assumes a particular mortgage from a seller, it indicates that the mortgage of the seller becomes the mortgage of the buyer. You therefore acquire both the home as well as the mortgage. The mortgage along with its various obligations and terms get passed down to you, and the original seller of the home is freed from any obligations towards it. It should be kept in mind that all loan types aren’t assumable. Every popular conventional loan type are non-assumable and only the FHA, VA and USDA loans can be assumed.

Is mortgage assumption advantageous?

As have been said before, one can save a lot of money through mortgage assumption. However, there are several other reasons why one should give a thought to this option. First, you can get a huge advantage in the form of a lower mortgage rate. For example, if a property owner used a fixed rate financing of 3% to purchase a home in 2013, the person he sells it to, would own the property at same mortgage rate in today’s times. Naturally, it is a much better deal. For every 100 basis points, there would be a considerable reduction. Once a seller’s mortgage is assumed, one gets to save close to $60 against every $100,000 borrowed. Additionally, closing costs would be much less.

If you are planning your home purchase this year then considering an assumed mortgage would avail you some great benefits. You should get in touch with a lender or a reliable consultant who would be able to guide you with the qualifications and get you a detailed account of the current available rates of VA mortgages. So, get the best deals on home purchases today!