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VA loans are amazing loans for veterans.  They allow you to get into a home for 0% down payment.  Mortgage Rates for veteran loans are almost always lower then conventional loans.  Another benefit they offer to help you get the lowest payment possible is that VA loans do NOT have monthly mortgage insurance.  This helps the VA  be giving them an even cheaper mortgage payment option then FHA loans.  VA loans are assumable.  This means another Veteran could buy your home and take over your VA mortgage, if they qualify.  There are many benefits to this possibility, but the #1 reason is that rates will never be this low again.  So someone having the option to take over your mortgage at 4.5% vs getting a new VA loan with a higher rate based on the market.  This Veteran would obviously choose to take over your loan.  Keep in mind that the VA requires that the seller pay certain closing costs for the buyer, meaning the buyer can not even pay these fees.  Helping your bottom line and the possible money needed for when you go to closing.  

JUMBO VA LOANS  

VA mortgages also offer a Jumbo program.  Unlike conventional loans that are limited to a max loan amount of $417k or FHA loans with a max of $217k, VA allows you to get a max loan of up to $1million (based on the mortgage lender's guidelines).  VA loans over 417k do not have a higher rate unlike Jumbo loans that can be up to 1% higher then market rates.  Under a $417k sales price you can qualify for 0% down payment, but over $417k there is a calculation for what the max loan you can get and your minimal down payment.  It is confusing but here is the calculation.  You must have 25% equity of the amount invested in any difference over the $417k loan amount.  So if you are buying a $600k home, then your max loan amount would be $554,250.  Based on the difference between 600k-417k is $183k.  Then you take 75% of $183k = 137,250.  You add this amount to 417,000, giving you your $554,250 loan amount.  And giving you a down payment of $45,750.  This calculation is the same for purchasing a home or refinancing a home.  

When getting a mortgage make sure you know all your options.  Call me today to make sure you are working with the best mortgage GUY in the business. 

 

 

 

David Krichmar 

Mortgage Banker/Broker

Schmidt Mortgage Company

Office:832-689-6012

David.Krichmar@gmail.com

www.DaveYourMortgageGuy.com

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DaveYourMortgageGuy.com is Voted the #1 Mortgage Company in Houston, Texas.  2010

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