Those who are active or retired military service personnel have a perfect tool at their feet to make their dreams of home ownership come true: veterans administration mortgages.
Pittsfield, MA -- (SBWIRE) -- 09/03/2013 -- There are specific qualification a person needs to meet, but in reality the criteria is much easier than what a potential buyer must endure when he or she is trying to finance a home with a conventional mortgage.
While there are a number of benefits for those who qualify for veterans’ administration mortgages, the most common reason many people choose veterans administration mortgages is because they don’t need to pay a down payment. Of course, while this is an easy way for new home buyers to achieve their dream, this doesn’t mean there are no other costs associated with the purchase. These other fees include closing costs and tax escrows, but you may be able to negotiate some of these costs with the seller.
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Buyers can use a VA mortgage to purchase a home in which they plan to live as opposed to property in which you plan to invest as either a rental or property to flip. While a VA mortgage includes a funding fee, there is no MIP (mortgage insurance premium) like there is with the FHA or conventional mortgages when the down payment is minimal.
Buyers do not want to think veterans administration mortgage loans are simple and easy to obtain. Veterans still need to qualify from both a credit and income perspective. This means in order to be approved a buyer needs to show he has the desire and financial resources to pay his bills on time.
Veterans will also need to have proof of employment and/or income. However, if you are attending school under the GI Bill, this income does not qualify as income for the purpose of a VA mortgage. The reason for this is because it is not long-term income, and any income you use to qualify for a mortgage must be from a long term source.
Something else that is different with veterans’ mortgage loans is the way the income ratios work. Instead of using the gross income like other lenders, the VA uses the residual income. What this means is they take your gross income and subtract your expenses. This is a straight forward process with which the lender can help. Only those who are married can put another person on the loan in order to use their income and assets.
www.real-estate-yogi.com, is a low cost website located in Pittsfield, Massachusetts helps consumers if a deal seems too good to be true, it usually is, so use some common sense and avoid scams. To get a free consultation dial 1-800-987-1397.