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March 14, 2011

VA Home Loan Requirements

Category: VA Home Loan News – admin – 2:16 pm

If you think you may fulfill VA loan requirements, you could be eligible for great benefits with VA home loans.  However, you may be preventing yourself from getting your hopes up until you understand every aspect of VA loan eligibility.  Here are the top points required of you to be accepted for VA loans. VA rates continue to be offered at extremely low interest rates.

The first topic of VA loan requirements is to have a certificate of eligibility.  This will be your proof of military service, which is the foremost requirement for VA loan eligibility.  If you do not currently possess proof of military service length, since you need to prove that you served for at least four years, you can obtain one from your local VA office.  It is also helpful for you to provide discharge papers if you are in the reserves or no longer serving.

Basic Prerequisites to be Approved for a VA Home Loan

Then, there are income requirements to be approved for a VA mortgage loan.  You will need to show income that can be documented as proof that you can pay your monthly mortgage and other costs involved with residential upkeep.  Along with having income that can be documented, your lender will also look at your other debts.  If you can, pay off outstanding debts before you apply to increase your chances of acceptance.

To qualify for a VA loan program, you must also meet occupancy requirements.  This means that either you or your spouse must reside in the property as your primary residence.  If you are on active duty, your spouse can meet this VA loan eligibility requirement by living permanently at the residence being financed with VA loans.

Like any other mortgage loan, VA home loans require you to have a certain credit score to qualify.  You should have a solid year of good credit history and a score of 620 or higher.  If you fail to meet this important aspect of VA loan requirements, you can work on your credit prior to applying for your VA home loan so you will not run into further problems.

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The last of the VA loan requirements is that you obtain your loan with income that can be documented and proof of military service for an approved purpose.  These include buying a home, building your own home, purchasing and renovating a home at the same time, or refinancing your current home loan.  By meeting all of these conditions for VA loan eligibility, you will soon benefit from your time in the armed forces as you obtain your new home.

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Home Equity Consolidation

Category: Published Articles – admin – 12:11 pm

Whatever you decide for your means of refinancing debt with a second mortgage, you will be glad to get rid of high rate credit cards with little harm done to your credit score.  You will need to make continual monthly payments on your debt consolidation loan to be rid of this debt soon as well.  Remember that most lending companies requiring 10 to 20% equity in home will be able to give you a great home equity rate if you fulfill good credit scores needed to qualify. Read the original article Consolidating Debt with a Home Equity Loan.

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Will Banks Continue Paying MSR’s?

Category: Published Articles – admin – 12:07 pm

The debate over loan officer compensation continues… If anyone thought the nation’s megabanks were going to take the “regulators’ medicine” with their mouths widen open, they thought wrong. I’m talking about the whole mess surrounding servicing fees, servicing standards and the big one: the servicing settlement with the AGs. The first piece of evidence is JPMorgan Chase selling off a large chunk of its MSRs to the servicing arm of IBM last fall. The next move is the story we broke over the weekend about a Wall Street firm offering a “sale-leaseback” option on MSRs.

What these two stories say is this: Okay, Mr. Regulator give us a hard time on servicing, and we’ll find a way to take it off balance sheet where your reach doesn’t extend. And then lastly, there’s the issue of the “Rising REITs.” Redwood Trust has completed two jumbo MBS deals. Provident Funding has filed with the SEC to raise $300 million via a REIT offering. Why are REITs looking so powerful these days? Answer: because they don’t have to answer to the Federal Deposit Insurance Corp. Article written by Paul Muolo.

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March 4, 2011

National Debt Commission Proposes Ending the Home Mortgage Interest Tax Deduction

Category: Mortgage Interest Tax Deductions,Published Articles – admin – 1:27 am

Real estate agents, lenders and homeowners are starting to get nervous about the Obama administration repealing the many tax benefits for homeownership, like the home mortgage interest deduction.  Among the tax expenditures the commission specifically targeted was the annual breaks that now flow to homeowners, including tax write-offs for lending costs on purchase loans, home refinancing and interest deductions on 2nd home loans, home equity and refinance loan transactions.  The commission was also considering property tax write-offs for $250,000 and $500,000 capital gains exclusions for single and married taxpayers, respectively, who sell their houses at a profit.

President Obama commended the broad goals of the commission but only included a minor reduction in mortgage interest deductions, a 28% deduction cap on write-offs by single taxpayers with incomes higher than $200,000 and married taxpayers earning more than $250,000 – in his own budget proposal for the upcoming fiscal year.

How Much More Would You Pay in Federal Taxes If Obama Repeals the Mortgage Deductions?

Obama’s budget proposal only called for ending home loan interest deductions for high-income taxpayers, but many believe it is only a matter of time before the President circles back for a complete overhaul that includes measures to end the tax deductions for homeownership as we know it. It’s no secret that Obama uses the national debt forum to promote the redistribution of wealth. 

We anticipate the legislative draft to be circulated to senators in March, already is controversial. For example, Senetor Charles Schumer (D-N.Y.) reportedly is demanding that Social Security changes be exempt from the plan. But members of the drafting group disagree and argue that, to be effective and fair, no major budget-related items no matter how politically sensitive can be omitted.  “Everything has to be on the table,” said Coburn. “There can be no sacred cows and pet priorities.” As to tax code changes, Durbin said that the only way to reduce the deficit is to “ensure that everyone pays their fair share . . . we need to look at the money we forgo every time we hand out a new tax break. These ‘tax expenditures’ cost the Treasury as much as we spend in appropriations each year with much less oversight.”

According to the latest estimates prepared by the congressional Joint Committee on Taxation, the 1st, second mortgage and home equity interest deduction will cost the government $99.8 billion in uncollected taxes this fiscal year and $107.3 billion in fiscal 2012. Homeowner property tax write-offs will cost $26.6 billion in uncollected taxes this year and $31.6 billion in 2012. The $250,000/$500,000 tax-free exclusions on capital gains for home sale profits are projected to cost the Treasury about $19 billion this year and $21 billion next year.  No one anticipates that these benefits could be eliminated or even severely slashed within a couple of years. And while housing trade groups have not yet spoken out about the plan being drafted in the Senate, they privately worry that, because of the sheer size of the national debt, leaders from both parties could conceivably join with the president to structure some form of grand debt reduction compromise that requires all special interests to chip in.  “We definitely take this seriously,” said Rob Dietz, an economist and tax specialist for the National Association of Home Builders. “We are going to have to continue to make the case for housing, and remind [Congress] just how important housing is to the economy.”  Read the original article published by Nationwide Lender calling the talk of ending the Mortgage Interest Tax Deduction as dangerous.

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March 1, 2011

FHA and Subprime Home Loans

Category: FHA,Published Articles – admin – 12:52 am

FHA home loans have become a trusted financing vehicle for borrowers with credit and equity obstacles. FHA mortgages are also popular with new homebuyers that cannot afford a big down-payment like conventional loan typically require.  After the subprime mortgage crisis in 2007, FHA loans are in fact one of the only ways to obtain subprime lending, as many lending practices were cut off as a result of the housing bubble. A subprime home loan offers new opportunitiesfor people who want a house but cannot afford one, but one of the only subprime loan techniques still in practice is the FHA loan, although it is certainly a safer practice.  Read the Original article > The Truth behind Subprime and FHA Loans

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