Does VA Provide for Reverse Mortgages?

NO, There is NO "VA reverse mortgage".
There is a an FHA program and there is a FNMAE one too.
They are pretty much the same you can either get a monthly payout or a lump
sum payout. You pretty much have to owe very little or nothing on the home
and live in it as your primary residence.

Are You Disabled and Looking for Relief in making payments to Lender on VA Home Loan?

by Bill Russberg

 

Well, I received this question today “I am recently disabled and looking for relief in making payments to my lender on VA Home Loan.  Is there a program for this?”

 

NO, there is no program.  Now, If you have a VA loan and paid a funding fee, then maybe the VA / Lender  would reduce the loan amount by that if VA awards you the VA disability

But that’s about it. There is NO payment relief program that I am aware by VA for recently disabled veterans.

 

Where are the daily VA Home Loan Rates Posted?

There is no place that I am aware of that publishes current daily rates for
VA Loan.
www.BankRate.com posts an average of mortgage rates for the day for 30 year
rates.
Typically, VA rates run about .25% less than this published rate...but each
lender differs slightly depending on where and how they buy their monies on
the market.
So it's not a perfect world right?
I agree!
Maybe we need a fixed published rate for all lenders so that we can take the
guessing game out of this darn thing and remove the scam programs from scam
brokers too. I mean that's what Congress should be doing about this mortgage
mess right?
Yet, I can understand that we need leave competition in the marketplace too
so that rates remain low. Hum?
Anyway, rates are really low compared to what we had back in the early 80s
and even the 90s.....I mean, sometimes we in America take our money market
efficiencies for granted and forget how good we have it. I mean do you know
what consumers in Mexico, our neighbor, pay for their mortgage monies? Try
double digits....yeah, in the 15% range! Talk about inefficiency causing
consumer harm.....they have it bad there. We are fine here in the 6.25%
fixed for 30 year range....thank goodness we live in great country...we just
have to a better job and fix the loopholes that invite a few who try to take
it for granted and abuse it.

New Veterans Program: Energy Efficient Mortgage (EEM)

The Energy Efficient Mortgage (EEM) program allows borrowers to upgrade the energy efficiency of the subject property and to finance the cost of the upgrades. The borrower may do this at the time of purchase or as a refinance if the borrower already owns the subject property.

Watch EEM PowerPoint Presentation

Eligible Property

The property must be an existing dwelling that is either being purchased or refinanced by the veteran. For IRRRLs, the veteran may certify prior occupancy as current occupancy is not required.

Eligible Improvements

Acceptable energy efficient improvements include, but are not limited to, the following items: solar heating systems, including solar systems for heating water for domestic use, solar heating and cooling systems, caulking and weather-stripping, furnace efficiency modifications limited to replacement burners, boilers or furnaces designed to reduce the firing rate or to achieve a reduction in the amount of fuel consumed as a result of increased combustion efficiency, devices for modifying flue openings which will increase the efficiency of the heating system, and electrical or mechanical furnace ignition systems which replace standing gas pilot lights, clock thermostats, new or additional ceiling, attic, wall and floor insulation, water heater insulation, storm windows and/or doors, including thermal windows and/or doors, heat pumps, and vapor barriers.

Maximum Allowable Cost of Improvements

The mortgage loan amount may be increased as follows: up to $3000 based solely on documented costs for energy efficiency improvements, up to $6000 provided the increase in the monthly mortgage payment does not exceed the likely reduction in monthly utility costs, more than $6000 subject to a value determination by VA, or up to the amount necessary to pay for materials, if labor is performed by the veteran.

Maximum Mortgage

Adding Cost of Improvements

The cost of the improvements may be added to the loan amount, up to $6000.

The appraised value may be exceeded by the amount of the energy efficient improvements on purchases and IRRRLs.

For a regular refinance loan, the loan cannot exceed 90% of the reasonable value shown on the appraisal (NOV) plus the cost of the energy efficient improvements (value x .90 + cost of improvements).

Funding Fee Calculation

The funding fee is calculated on the full loan amount, including the cost of the energy efficient improvements.

Underwriting Issues

General

In addition to the underwriting issues listed below, the lender must determine the following:

(1) If the proposed weatherization and/or energy conservation improvements are reasonable for the particular property, and (2)

If the veteran’s ability to pay the increased loan payments caused by the addition of the improvements is satisfactory.

Increased Payments for Costs up to $3000

The lender must determine that the proposed energy efficient improvements up to $3000 meet the following requirements: normally offset by a reduction in utility costs, and based solely on the documented costs Increased Payments for Costs Between $3000 and $6,000

For energy efficient improvements that are more than $3000 but no more than $6,000, the lender must determine if the increase in the monthly mortgage payment does not exceed the likely reduction in monthly utility costs.

The lender is expected to rely on locally available information provided by utility companies, municipalities, State agencies, or other reliable sources to make the determination.

VA will accept the lender’s determination that the requirement is met.

Increased Payments for Costs Above $6000

The lender should carefully exercise discretion and consider the following points whenever the energy efficient improvements exceed $6,000: whether the increase in monthly mortgage payments exceed the likely reduction in monthly utility costs, whether the veteran’s income is sufficient to cover the higher mortgage payment, and documentation of VA’s valuation of the energy efficient improvements.

A VA Certificate of Commitment, on a prior approval loan, issued prior to the decision to make energy efficient improvements over $6,000 must be returned to VA for a determination that the applicant still qualifies.

Increased Payments on an IRRRL

If the monthly payment (PITI) for the new loan, when adding the cost of energy efficient improvements, exceeds the PITI of the loan being refinanced by 20% or more, the veteran must qualify with the higher payment.

Regular Cash-Out Refinance Transactions

VA guidelines allow the cost of any energy efficient items to be included in the maximum loan calculation. However, DU does not capture the cost of energy efficient items; therefore you may need to perform the maximum loan calculation outside of DU.

Veteran’s Entitlement

VA will guarantee an energy efficient mortgage in the same proportion as a loan not including energy efficient improvements. However, the charge to the veteran’s entitlement will be based on the loan amount before adding the cost of energy efficient improvements.

Reference: See the VA Lender’s Handbook (Section 7.03) for specific instructions on calculating the guarantee and entitlement for EEM loans.

Closing and Post Closing - Escrow for Improvements

General

Energy efficient improvements should be completed when the loan is reported to VA. However, if the improvements cannot be completed prior to submitting the loan report to VA, the loan may be closed by establishing an escrow to assure completion.

A formal escrow is not required for loans processed on a prior approval or automatic basis. Only the amount necessary to complete the improvements needs to be withheld and no additional documentation pertaining to the escrow funds needs to be submitted to VA.

Generally, the improvements must be completed within 6 months from the date of loan closing. At that time, VA will expect the lender’s notification of completion or notification that funds were applied to reduce the loan balance.

When the improvements have been completed, the lender must provide VA with a written notification of completion and that all escrow funds have been disbursed. The lender is responsible for verifying that all costs have been paid.

If, after a reasonable period, the lender determines that the improvements will not be completed, the balance of the escrow funds should be applied as principal to reduce the loan balance and the Regional VA office must be notified.

Special Instructions for EEMS on IRRRL Transactions

VA allows a veteran to receive up to $6,000 of IRRRL loan proceeds as reimbursement for the cost of energy efficiency improvements completed within the 90 days immediately preceding the date of the loan.

If the energy efficiency improvements are not completed prior to closing, the funds may be escrowed as mentioned in the “General” section above.

Escrowed funds must be paid directly to the contractor(s) once the lender is satisfied that the work is properly completed. Escrowed funds may not be given to the veteran as reimbursement or payment.

FHA's Energy Efficient Mortgage (EEM) Program

Did you know that the federal government can help you make energy improvements to your home? If you've considered remodeling, take the time to learn more about the FHA's Energy Efficient Mortgage (EEM) Program. You might qualify for a higher loan amount to fund energy improvements that will lower your living expenses.

If your cost of living is being hit hard by rising gasoline prices, you're not alone. Everyone's feeling the squeeze. One way to reduce your spending is to cut the cost of your utility bills. And replacing those drafty windows and leaky ducts might be easier than you think.

Energy Efficient Mortgage (EEM)

An EEM funds the costs of planned energy-efficiency improvements to your home. They can be federally insured through the Federal Housing Authority (FHA) or Veteran's Administration (VA). They may also be made without federal backing, either through conventional channels, or through an Environmental Protection Agency (EPA) program called ENERGY STAR. Each of these channels has slightly different terms and qualification requirements.

Qualified energy upgrades

Common upgrades include ductwork and insulation repairs, and installation of modernized heating and air conditioning systems, energy-efficient windows, and/or energy-efficient water heaters.

All EEM programs require that the financed energy upgrades result in utility cost savings over time. The potential savings must be documented by a Home Energy Rating Systems (HERS) report. A HERS report rates your home's energy efficiency before any upgrades, and then prepares a cost/benefit analysis on potential upgrades. Qualifying upgrades are those whose estimated costs of implementation are less than the resulting savings. Upgrades costing more than the total savings they can provide are not recommended.

Benefits of EEMs

Because EEM lenders allow additional funding for the cost of the energy upgrades, you'll qualify for a larger loan amount. Your lender may recognize that your cost of living will be lower after the planned upgrades, which should also increase your borrowing power. If you qualify for an FHA- or VA-backed EEM, you'll likely have access to better rates and terms. Lastly, the EEM will give you the resources necessary to increase the value of your home and enhance your quality of life.

Taking action

The steps to acquiring an EEM refinance are very similar to applying for a conventional loan. Start by shopping around, letting prospective lenders know that you're considering an EEM. An experienced lender can offer advice as to which program would be most appropriate for your situation. You'll also need to order a HERS report as soon as possible; this will indicate which upgrades qualify for financing.

The sooner you get the ball rolling, the sooner you'll realize the benefits. Who knows…you may actually catch the energy-efficient bug and trade in that gas-guzzler for a hybrid.

 

VA Foreclosed Homes Available to All Now!

BUY VA FORECLOSED HOMES NOW

VENDEE FINANCING PROVIDES PATH FOR MANY WITH CREDIT CHALLENGES

by John P. Allen

If you're thinking about buying a VA-owned property, Vendee Financing may be an option for you. Unlike VA Loans, which are guaranteed by the Department of Veterans Affairs (VA) and only granted to U.S. Veterans and their spouses, VA Vendee Financing is available to Veterans and non-Veterans alike.

Compared to traditional mortgage loans, Vendee Financing requires fewer fees and less money out of pocket. You'll enjoy the unique benefits of a low - or even no - down payment; no mortgage insurance; no tax service fee; no appraisal fee; and no flood certification fee.

While the fees, terms and requirements are subject to change without notice, at the time of this writing the borrower would pay 2.25% of loan amount to the Department of Veteran Affairs. The Application fee is just $350.00 which is non-refundable fee and made payable to Ocwen Financial Corporation.

Ocwen Financial Corporation handles the majority of VA Home Foreclosures for the lenders who have them on the books. They are a leading business process outsourcing provider to the financial services industry, specializing in loan servicing, mortgage fulfillment and receivables management services. In the USA, Ocwen is headquartered in West Palm Beach, Florida with offices in Arizona, California, Florida, Georgia, Illinois and New York.

Here are the features of getting Vendee Financing through OCWEN:

* 0% Down Payment -- if Owner Occupied
* 5% Down Payment -- if Investment/Non owner occupied
* 20% Down Payment - processing will be streamlined.

Closing Costs

* Funding Fee - 2.25% of loan amount to VA
* Closing Fee To Ocwen Loan Servicing, LLC ($500.00 flat fee)
* Prorated Property Taxes
* Prorated HOA Fees
* Optional Title Policy
* Recording Fees
* State Taxes (if applicable)
* 1 year pre-paid Hazard Insurance
* Title Company Closing Fee
* Title Company Document Preparation Fee
* Attorney Fee
* Seller Representation Fee
* Title Company Express Mail
* Title Company Wire Fee
* Title Company Deed Preparation Fee
* Other Costs may be incurred based upon state and local requirements

Disclosures:

1. All properties are sold "As Is."
2. The applicable interest rate for a Vendee Loan will be the rate in effect at the time Ocwen accepts the Offer to Purchase and Contract for Sale of behalf of VA.
3. Interest Rates and Funding Fees are set by VA and are subject to change without notice.
4. Returned checks are subject to the Returned Check Fee charged by the bank, plus the amount of the check.
5. If application is approved and applicant does not close, the Earnest Money Deposit may be forfeited to VA.
6. Vendee Financing may not be available on all properties.
7. VA Funding Fee (currently 2.25%) is required to be paid at the time of Closing. Funding Fee is calculated on the total loan amount

* A veteran who is receiving compensation (or who would be entitled to receive compensation, but for the receipt of retirement pay), or a surviving spouse whose spouse died as a result of service-related disability is exempt from the funding fee.

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Vendee Loans - Frequently Asked Questions

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Q: What is a Vendee Loan?
A: A Vendee Loan is Purchase Money Financing provided by the Department of Veterans Affairs (VA) on the sale of VA Properties.

Q: Who Can Apply for a Vendee Loan?
A: Both Veterans and Non-Veterans can apply. Purchasers can be Owner-Occupants or Investors.

Q: How do I apply for a Vendee Loan?
A: Have either your representative or yourself contact the Listing Agent for detailed instructions on how to submit your loan package. All forms and instructions are located in the Ocwen Vendee Financing Section of this web site.

Q: What are the Benefits of a Vendee Loan?
1. Easy application process
2. Reduced closing time
3. Competitive fixed interest rates
4. Low down payment
5. No mortgage insurance required
6. No tax service fee
7. No appraisal fee
8. No flood certification fee

Q: How do I know if I will qualify for VA Vendee financing?
A: Non Veterans as well as Veterans are eligible to apply for VA Vendee financing. Credit Scores are not used as a determining factor in VA Vendee financing approval.

Q: What are the closing costs associated with VA Vendee financing?
A: Closing costs are state specific. We do not require Title Insurance, Appraisal, Survey, or Private Mortgage Insurance (PMI). See Program Terms and Conditions for further details.

Q: How much Earnest money is required?
A: The minimum is $500.00, except in West Virginia and Virginia where earnest money requirement are different. Please see your local Real Estate Agent for earnest money requirements in your state.

Q: What title company will be used for closing and what is the cost?
A: Title company selection is state specific. In seller selection states, Ocwen chooses title company from a pre-approved list.

Q: Why do I have to pay a funding fee?
A: This fee is charged by the VA. Certain military applicants are exempt from paying this fee. To see a list of exempt military see the Terms and Conditions above.

Q: What is the interest rate for a VA Vendee loan?
A: The interest rate is set by the VA. To see the most current interest rate, see the Terms and Conditions above

Q: Where can I find information on VA Vendee Underwriting?
A: You can view and print Pamphlet 26-7 - “Guaranty or Insurance of Loans to Veterans ... GI Loan Programs” from the VA website. The web address is http://www.warms.vba.va.gov/pam26_7.html.
CONTACT INFORMATION

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Official OCWEN Web Site - Forms

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Ocwen
Attn: VA Vendee Financing
P.O. Box 785060
Orlando, FL 32878
E-Mail: vendeeinfo@ocwen.com
Phone: 1-866-4VENDEE ((866) 483-6333)
8:30 a.m. - 5:30 p.m. EST

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VA Home Loan Question: Can I use a Co-Signer if my Credit Score is Not Sufficient?

If you do not have a credit score at or over the current credit score requirement from the lenders, which in this market is 580, can you use a co-signer so that you can get a VA Home Loan?  That’s a great question and the answer is….NO! Unfortunately a co-signer is for income/debt qualifying only!  It’s not used to make up for credit scores that do NOT meet current lender requirements