Chicago, IL (PRWEB) April 30, 2014
After the Financial Crisis of 2008, Congress passed the Dodd-Frank Act (Wall Street Reform and Consumer Protection Act) which eliminated or restricted many underwriting practices such as "No Money Down" or 100% mortgage programs. However, one of the loan programs that has changed very little throughout the housing bubble and crash is the VA loan. A veteran can still buy a home with no money down and finance 100% of the purchase price.
The Veterans Administration has been offering 100% loans to returning GIs since World War II with an excellent track record. The VA loan program that has helped thousands of Vets buy a home over the past 50 years is still available to today. Eligibility for a VA loan is restricted only to Veterans and can be complicated with different requirements. But, in general, it requires 90 days of active duty in wartime, 181 days of active duty in peacetime, or 6 years in the National Guard or Reserves. The Vet can use his eligibility to buy a single family home, condo, townhouse or 2 to 4 unit property.
Credit requirements vary from lender to lender but are fairly consistent with more favorable terms provided for a Vet that has been disabled. There is a VA Funding Fee of 2.15% for 100% loans, 1.5% for 90-95% loans, and 1.25% if the loan is 90% or less. However, the vast majority of VA loans are 100% financed. The VA Funding Fee is usually financed into the new mortgage but can be paid in cash along with other typical closing costs.
VA loans can be fixed or adjustable. The majority of Vets choose a 30 year fixed rate loan but terms of 25, 20, 15, and 10 years are available. VA Adjustable Rate Mortgages (ARM's) are available as 3/1, 5/1, and 7/1 hybrid ARMs. A hybrid ARM is a combination of a fixed rate and adjustable rate loan. The loan is fixed for the first years but then turns into an ARM and adjusts annually. A 5/1 ARM has an interest rate that is fixed for the first 5 years. After 5 years the interest rate adjusts every year. All VA lenders offer a 30 year fixed rate mortgage but only a few offer ARMs.
Wholesale and Correspondent Mortgage Lenders offering VA fixed and ARM loans can easily be found at MortgageElements.com. Mortgage Elements maintains one of the industry's largest databases of Wholesale, Correspondent, and Mini-Corr lenders that offer VA mortgages throughout the country. The Mortgage Elements database can be accessed for free by Mortgage Professionals with searches conducted on a state level. The website provides links to different lenders enhancing the ability to research VA lenders and their programs.
About Mortgage Elements Inc.
Mortgage Elements Inc. is an internet marketing company that provides marketing, database, search, and consulting solutions for the mortgage industry through its website http://www.MortgageElements.com. The company uses a unique website design optimized for touch screen technology and use on mobile devices, desktop, and laptop computers. Mortgage Elements is a B2B company for the mortgage industry and not a lender.