YES!…actually…

For eligible veteran and active duty military borrowers in Alameda, CA a VA loan is often a better option than a conventional mortgage. This is due to the many distinct advantages offered by VA loans.

For starters, VA loans have fantastic interest rates. VA loan rates can be up to .50% lower than what you would get in a conventional mortgage!

That’s about $32.00 per hundred thousand which may not sound like much but on a $500,000 home you can put zero down and save $2000 a year. Just for being a veteran!

Another big advantage of VA mortgages is that they do not require any monthly mortgage insurance.

Private mortgage insurance (PMI) is generally required on conventional loans when borrowing more than 80% of the value of a property, and the percentage amount varies with the loan-to-value.

Once again, this may not seem like a lot of money, but when added up, PMI also ends up costing hundreds of dollars a year, if not more. We have seen FHA increase its PMI several times since 2008. This is a non-issue for veterans!

It is also typically easier to qualify for a VA mortgage loan than a conventional mortgage. This has become especially true with the current downturn in the housing market.

VA loans do not require any money down at time of purchase making it the only loan option with 100% financing available! In this market it is impossible to find 100% financing for a conventional loan.

In addition, veterans are allowed to choose between having a fixed rate or an adjustable rate for their VA mortgage. The difference between the two options is as follows:

• Fixed rate loans have only one interest rate that is used throughout the duration of the loan.

• Adjustable rate loans start off with a set interest rate, but after an established time period the person who took out the loan can have their rate changed if it would work in their favor.

The Department of Veterans Affairs does have a funding fee requirement for VA loans. This funding fee can be anywhere between 0.5% to 3.3% of the loan total. However, veterans who were classified as disabled during at least 10% of their time in active duty do not have to pay the fee.

Refinancing with a VA loan also has many benefits over refinancing with a conventional loan. Some of these benefits include:

• A higher refinance limit (up to 90% and some 100%) than the majority of conventional loans.

• Easier credit requirements, which often make refinancing with a VA loan simpler and less stressful.

• Help from the Department of Veterans Affairs for borrowers currently in default because of financial hardship.

• No requirement of private mortgage insurance.

• The ability to include the VA funding fee with the total amount of the refinance.

Between the tremendous savings and easier terms, any veteran who is wither purchasing or refinancing a home should strongly consider using their hard earned VA benefits. In both the long and short, it simply makes sense.

If you or someone you know is looking to explore their options with VA financing feel free to contact us, we are here to help you and we love serving those who serve.

Other VA Posts You May be Interested in:

VA Mortgage Loans in Alameda, CA- a Piece of Island History
VA Interest Rate Reduction Loan
VA Loan Requirements and Eligibility in Alameda, CA
Approved Property Types and Loan Limits for VA Loans

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Garrick Werdmuller
First Priority Financial
Branch Manager
1151 Harbor Bay Parkway Ste 207D
Alameda Ca 94502
510.282.5456 DRCT/TXT
510.225.0382 FAX
info@garrick.biz
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Here is an excerpt from the July Update provided by the CA Franchise Tax Board:

Important Update (07/13/10): Franchise Tax Board to accept additional First-Time Buyer applications.

As shown in the numbers below, we have received First-Time Buyer applications totaling more than $100 million. We announced in June that we would accept at least 28,000 applications since many we have received are duplicate, revised, or invalid applications. Since that time, we are noticing more and more duplicate and invalid applications in our sampling. Because our computer system is expected to be released by the end of next week, we will soon be able to better estimate the number of possible duplicates. So that we do not risk cutting off the program too soon, we will wait for the computer system to be released before we determine when to stop accepting First-Time Buyer applications. We will continue to update the estimated total number of First-Time Buyer applications each business day. We will announce the cut-off date on this webpage at least one full day before we stop accepting First-Time Buyer applications. The additional applications will be subject to the availability of remaining credits. We will only issue approved certificates of allocation until the $100 million is exhausted. (Updated 07/13/10)

We have not processed any applications yet as our computer system is still being developed. Once our computer system is completed, we will provide weekly updates on the number of certificates that have been mailed and the amount of credits that have been allocated. (Updated 06/17/10)

Fax delays
Due to the high volume of faxes we are receiving, you may experience some delays or difficulties in connecting to our fax number during normal business hours. It can take several minutes or possibly up to an hour to connect and transmit the fax. If you receive a busy signal, try again later. Check your fax confirmation to make sure all pages were transmitted successfully and keep a copy of the fax confirmation. Our fax number is open 24 hours a day so you may fax your application to us during non-business hours when the line is not so busy.

Applying for the 2010 New Home/First-Time Buyer tax credits: Applications must be faxed after escrow closes. We will deny the application if the 2009 form is used, we receive the 2010 application before May 1, 2010, or we receive the application before escrow closes. (Updated 04/28/10).

The New Home / First-Time Buyer Credits are available only for purchases that close escrow on or after May 1, 2010.

To read the full report click the link below.

http://www.ftb.ca.gov/individuals/new_home_credit.shtml

Late Wednesday night the Senate followed the lead of the House of Representatives and voted to extend the closing deadline for the popular homebuyer tax credit that was scheduled to expire yesterday at midnight. Once President Obama signs the Homebuyer Assistance and Improvement Act of 2010, which he is expected to do next week, homebuyers will have until September 30 to close on their home purchase and still qualify for the tax credit (as long as they signed their sales contract by April 30, 2010).

The federal tax credit was part of the American Recovery and Reinvestment Act signed into law in February 2009. The $8,000 credit was available to first time buyers who purchased a house after January 1, 2009 and was originally scheduled to expire on November 30, 2009. The credit was seen to have stimulated home sales, especially in the lower price ranges, and in November Congress extended it through April 30 and added a $6,500 tax credit for non-first-time buyers.

http://www.mortgagenewsdaily.com/06292010_homebuyer_tax_credit_extension.asp