You read the headline correct: VA now allows 100% cash out refinances. VA refinances are no longer capped at 90% of your current appraised value. This change will allow Veterans, Active Duty Members & Reservists the option to refinance their non VA loans into safe, secure, fixed rate VA Loans. VA Loans have no MI or Mortgage Insurance.
Even better news: The previous limit of $144,000 on VA refinances has been lifted, and the limit is now the VA Loan limit for your county. Click here to see your limit: New VA loan limits for 2009 Blog Post .
The Entitlement and Guarantee equations have been adjusted slightly as well to facilitate Refinances over $144K as well. I will post some scenarios in a future blog to illustrate this.
We are very excited about the enhanced possibilities for our Veterans.
Please call Brian Skaar at 760-752-4480 or visit us online at www.vandykfunding.com to find out more.
VanDyk Mortgage is a VA Direct Lender (since 1987). We are the VA Experts. We offer VA loans accross America including: California, Washington, Arizona, Texas, Florida, Georgia, & more.
Thursday, December 4, 2008
Wednesday, December 3, 2008
100% financing in California
100% financing in California. It still exists.
Fannie, Freddie, & the Private Mortgage Insurance companies have limited California purchases to a minimum of 10% down payment, or a maximum of 90%.
For Veterans & Active Duty Service members the VA loan still offers 100%, no money down financing in California. Recent enhancements for 2009 loans have increased the loan limits, and your entitlement might be higher that you thought. For example, San Diego VA loans are available up to $593,750, Los Angeles up to $737,500, Orange County up to $737,500, and San Bernardino / Riverside up to $417,000.
For non-Military, FHA is an incredible option for Home ownership at just 3.5% downpayment required.
VanDyk Mortgage is a Direct VA Lender and Direct FHA Lender. www.VanDykFunding.com
Fannie, Freddie, & the Private Mortgage Insurance companies have limited California purchases to a minimum of 10% down payment, or a maximum of 90%.
For Veterans & Active Duty Service members the VA loan still offers 100%, no money down financing in California. Recent enhancements for 2009 loans have increased the loan limits, and your entitlement might be higher that you thought. For example, San Diego VA loans are available up to $593,750, Los Angeles up to $737,500, Orange County up to $737,500, and San Bernardino / Riverside up to $417,000.
For non-Military, FHA is an incredible option for Home ownership at just 3.5% downpayment required.
VanDyk Mortgage is a Direct VA Lender and Direct FHA Lender. www.VanDykFunding.com
Tuesday, December 2, 2008
New 2009 VA Loan Limits - a snapshot
New VA Loan Limits for 2009 are now available.
The new limits range from the base limit of $417,000 up to $1,094,625 in the highest cost areas.
All VA loans require ZERO Mortgage Insurance, and as little as ZERO down payment.
Here are some of the new county limits:
CA
ALAMEDA
$1,094,625.00
CA
ALPINE
$503,750.00
CA
CONTRA COSTA
$1,094,625.00
CA
EL DORADO
$516,250.00
CA
LOS ANGELES
$737,500.00
CA
MARIN
$1,094,625.00
CA
MONO
$575,000.00
CA
MONTEREY
$525,000.00
CA
NAPA
$643,750.00
CA
NEVADA
$518,750.00
CA
ORANGE
$737,500.00
CA
PLACER
$516,250.00
CA
SACRAMENTO
$516,250.00
CA
SAN BENITO
$937,500.00
CA
SAN DIEGO
$593,750.00
CA
SAN FRANCISCO
$1,094,625.00
CA
SAN LUIS OBISPO
$610,000.00
CA
SAN MATEO
$1,094,625.00
CA
SANTA BARBARA
$656,250.00
CA
SANTA CLARA
$937,500.00
CA
SANTA CRUZ
$805,000.00
CA
SOLANO
$435,000.00
CA
SONOMA
$566,250.00
CA
VENTURA
$650,000.00
CA
YOLO
$516,250.00
FL
COLLIER
$487,500.00
FL
MONROE
$575,000.00
GA
GREENE
$560,000.00
WA
KING
$550,000.00
WA
PIERCE
$550,000.00
WA
SAN JUAN
$525,000.00
WA
SNOHOMISH
$550,000.00
The maximum guaranty amount (available for loans over $144,000) is 25 percent of the 2009 VA Limit shown below. Therefore, a veteran with full entitlement available may borrow up to the 2009 VA Limit shown below and VA will guarantee 25 percent of the loan amount. If a veteran has previously used entitlement that has not been restored, the maximum guaranty amount available to that veteran must be reduced accordingly.
VanDyk Mortgage is a Direct VA lender, and has been making VA Loans since 1987. Visit us on the web for more info or to apply for your VA Loan at http://www.vandykfunding.com/
The new limits range from the base limit of $417,000 up to $1,094,625 in the highest cost areas.
All VA loans require ZERO Mortgage Insurance, and as little as ZERO down payment.
Here are some of the new county limits:
CA
ALAMEDA
$1,094,625.00
CA
ALPINE
$503,750.00
CA
CONTRA COSTA
$1,094,625.00
CA
EL DORADO
$516,250.00
CA
LOS ANGELES
$737,500.00
CA
MARIN
$1,094,625.00
CA
MONO
$575,000.00
CA
MONTEREY
$525,000.00
CA
NAPA
$643,750.00
CA
NEVADA
$518,750.00
CA
ORANGE
$737,500.00
CA
PLACER
$516,250.00
CA
SACRAMENTO
$516,250.00
CA
SAN BENITO
$937,500.00
CA
SAN DIEGO
$593,750.00
CA
SAN FRANCISCO
$1,094,625.00
CA
SAN LUIS OBISPO
$610,000.00
CA
SAN MATEO
$1,094,625.00
CA
SANTA BARBARA
$656,250.00
CA
SANTA CLARA
$937,500.00
CA
SANTA CRUZ
$805,000.00
CA
SOLANO
$435,000.00
CA
SONOMA
$566,250.00
CA
VENTURA
$650,000.00
CA
YOLO
$516,250.00
FL
COLLIER
$487,500.00
FL
MONROE
$575,000.00
GA
GREENE
$560,000.00
WA
KING
$550,000.00
WA
PIERCE
$550,000.00
WA
SAN JUAN
$525,000.00
WA
SNOHOMISH
$550,000.00
The maximum guaranty amount (available for loans over $144,000) is 25 percent of the 2009 VA Limit shown below. Therefore, a veteran with full entitlement available may borrow up to the 2009 VA Limit shown below and VA will guarantee 25 percent of the loan amount. If a veteran has previously used entitlement that has not been restored, the maximum guaranty amount available to that veteran must be reduced accordingly.
VanDyk Mortgage is a Direct VA lender, and has been making VA Loans since 1987. Visit us on the web for more info or to apply for your VA Loan at http://www.vandykfunding.com/
VA loan enhancements for 2009
Enhanced VA home loan options are available for 2009 thanks to the Veteran's Benefits Improvement Act of 2008, passed on Oct. 10, 2008. The new VA home loan changes include higher loan limits (click here for 2009 VA loan limits by County).
VA Loans can now help Veterans and active service members refinance their non-VA loans into safe, secure, & fixed rate VA Loans. Previously, this type of refinance was only available up to $144,000. Now you can refinance into VA Loans up to $729,750 (depending on your county limit). Another huge change is that Veterans & active service members can refinance up to 100 percent of the property value (this was capped at 90% before).
For questions regarding calculation of your Entitlement under the VA Loan program call Brian Skaar at 866-900-2342 toll free direct. Your entitlement is now increased and we can help you figure out your eligibility based on the newest figures. It is likely more than you thought.
VanDyk Mortgage is a VA Direct Lender, and has been since 1987. We also offer FHA Loans, Fannie & Freddie Conventional loans, Jumbo Loans, and construction loans. Visit us on the web at www.vandykfunding.com.
VA Loans can now help Veterans and active service members refinance their non-VA loans into safe, secure, & fixed rate VA Loans. Previously, this type of refinance was only available up to $144,000. Now you can refinance into VA Loans up to $729,750 (depending on your county limit). Another huge change is that Veterans & active service members can refinance up to 100 percent of the property value (this was capped at 90% before).
For questions regarding calculation of your Entitlement under the VA Loan program call Brian Skaar at 866-900-2342 toll free direct. Your entitlement is now increased and we can help you figure out your eligibility based on the newest figures. It is likely more than you thought.
VanDyk Mortgage is a VA Direct Lender, and has been since 1987. We also offer FHA Loans, Fannie & Freddie Conventional loans, Jumbo Loans, and construction loans. Visit us on the web at www.vandykfunding.com.
Monday, November 10, 2008
New FHA Loan Limits - Complete guide
I have posted the new 2009 FHA Loan Limits on our primary website here:
2009 FHA Loan Limits. Please let me know if I can help you with any questions.
2009 FHA Loan Limits. Please let me know if I can help you with any questions.
Friday, November 7, 2008
New Loan Limits for 2009 released
Fannie Mae & Freddie Mac have new loan limits for 2009, as released today. The standard conventional loan limit remains at $417K accross the USA. High Cost Areas have new limits based on the new formula in the 2008 housing bill passed in July.
We expect to see some updates to the current Fannie Mae & Freddie Mac guidelines for loans that exceed the standard limit of $417K which will keep these larger sized loans affordable & attainable. We will keep you posted as we hear updates.
We also expect to see updates soon from HUD regarding the 2009 FHA loan limits, extension of the FHA Secure loan program, and updated guidelines on Hope for Homeowners.
Here are some highlights of the new loan limits:
Alpine County, CA $463,450
Bellevue, WA $506,000
Carlsbad, CA $546,250
Chula Vista, CA $546,250
Escondido, CA $546,250
Everett, WA $506,000
Greene County, GA $515,200
Key West, FL $529,000
Kirkland, WA $506,000
Long Beach, CA $625,500
Los Angeles, CA $625,500
Lynnwood, WA $506,000
Mono County, CA $529,000
Napa, CA $592,250
Naples, FL $448,500
Oakland, CA $625,500
Oceanside, CA $546,250
Orange County, CA $625,500
Petaluma, CA $520,950
Pierce County, WA $506,000
Riverside, CA $417,000
Sacramento, CA $474,950
Salinas, CA $483,000
San Diego, CA $546,250
San Francisco, CA $625,500
San Jose, CA $625,500
San Juan County, WA $483,000
San Luis Obispo, CA $561,200
San Marcos, CA $546,250
Santa Barbara, CA $603,750
Santa Cruz, CA $625,500
Santa Rosa, CA $520,950
Seattle, WA $506,000
Snohomish County, WA $506,000
Tacoma, WA $506,000
Truckee, CA $477,250
Ventura, CA $598,000
Access the 2009 High cost area loan limits here PDF: 2009 Loan Limits
We believe that these loan limits are ample enough to help out millions of Americans Purchase new homes and Refinance their homes into safe affordable fixed rate loans.
VanDyk Mortgage is a Nationwide Direct Lender. Visit us on the web at www.vandykfunding.com.
We expect to see some updates to the current Fannie Mae & Freddie Mac guidelines for loans that exceed the standard limit of $417K which will keep these larger sized loans affordable & attainable. We will keep you posted as we hear updates.
We also expect to see updates soon from HUD regarding the 2009 FHA loan limits, extension of the FHA Secure loan program, and updated guidelines on Hope for Homeowners.
Here are some highlights of the new loan limits:
Alpine County, CA $463,450
Bellevue, WA $506,000
Carlsbad, CA $546,250
Chula Vista, CA $546,250
Escondido, CA $546,250
Everett, WA $506,000
Greene County, GA $515,200
Key West, FL $529,000
Kirkland, WA $506,000
Long Beach, CA $625,500
Los Angeles, CA $625,500
Lynnwood, WA $506,000
Mono County, CA $529,000
Napa, CA $592,250
Naples, FL $448,500
Oakland, CA $625,500
Oceanside, CA $546,250
Orange County, CA $625,500
Petaluma, CA $520,950
Pierce County, WA $506,000
Riverside, CA $417,000
Sacramento, CA $474,950
Salinas, CA $483,000
San Diego, CA $546,250
San Francisco, CA $625,500
San Jose, CA $625,500
San Juan County, WA $483,000
San Luis Obispo, CA $561,200
San Marcos, CA $546,250
Santa Barbara, CA $603,750
Santa Cruz, CA $625,500
Santa Rosa, CA $520,950
Seattle, WA $506,000
Snohomish County, WA $506,000
Tacoma, WA $506,000
Truckee, CA $477,250
Ventura, CA $598,000
Access the 2009 High cost area loan limits here PDF: 2009 Loan Limits
We believe that these loan limits are ample enough to help out millions of Americans Purchase new homes and Refinance their homes into safe affordable fixed rate loans.
VanDyk Mortgage is a Nationwide Direct Lender. Visit us on the web at www.vandykfunding.com.
Tuesday, October 7, 2008
FHA loans - the Affordable, Safe alternative to Fannie & Freddie Conforming loans
We strongly believe that FHA Loans are the safer, more affordable alternative to Fannie & Freddie loans. Here is a quick comparison of the benefits and differences between the two.
All comparisons are based on a purchase price of $250K, fico score of 675, and full documentation. Rates are example only, presented for sample scenario comparison only.
Fannie & Freddie require a minimum of 10% down in California (are capped at 90% LTV).
FHA requires just 3% down (goes to 97%). You can keep the 7% difference in the bank, which gives you liquidity, security, and peace of mind. (the difference is $17,500) The payment difference is minimal (see below for detailed comparison).
Mortgage Insurance Qualification: Fannie & Freddie utilize private mortgage insurance, which requires a second underwriting process from the Private Mortgage Insurance company the lender utilizes. These companies have increased the thresholds for homeownership in recent months. For instance, They require atleast a 10% downpayment in California & have additional underwriting criteria for homeowners or homebuyers in Declining states such as California. **FHA requires just 3% downpayment nationwide, with no adjustments or additional criteria for Declining Markets.
The monthly mortgage insurance rate on Private Mortgage Insurance is between .62% -.78%. Monthly Insurance Premiums for FHA are just .55%. Even more appealing is that the FHA premium is for a 3% downpayment, whereas the private Mortgage Insurance rates are for 10% down payment.
The Private Mortgage Insurance companies do allow a program called "Lender Paid MI" (MI = Mortgage Insurance). With this program you are still capped at 90% in California, however the cost is not paid monthly, it is paid with a higher interest rate. Typically .75% is added to your rate to cover the cost of the Lender Paid MI.
FHA does have a second Mortgage Insurance cost, the Upfront Mortgage Insurance Premium (UFMIP). This amount is 1.5% (soon to increase to 1.75%, which we will us in our example). This lump sum fee can be paid either in cash at closing, or added to your loan amount. Adding the UFMIP to your loan amount is the most common method. However, if you are receiving a large seller credit towards your closing costs, these can be applied to your UFMIP.
Fannie & Freddie require a 620 minimum score to put down less than 20% (ie go over 80%).
FHA has no minimum. However, most FHA Lenders do require a 550 mid fico score.
Fannie & Freddie have price premiums or increased rates for loans that are over 80%. FHA does not increase the rate in this manner.
Here are the real numbers for the sample scenario above ($250K purchase price, 675 mid fico score, purchase loan, California home)
**All amounts are estimates only, provided only to show the comparison between these loan programs on a given day for a sample scenario.
The FHA Loan is the safest overall option, as it is safer to have a slightly higher Mortgage payment along with $17,500 in savings, than to put the extra money into your downpayment and save just a few dollars per month. You will have the $17,500 earning interest, available for emergencies, and diversifying where your money is stored. I think it is safe to say that storing money in your home is not the safest method of savings.
FHA also offers a couple of programs that Fannie & Freddie do not:
FHA Secure - for homeowners who want to refinance their ARM or Adjustable Rate Mortgage into a safe, secure, fixed rate FHA Loan. This program even allows Short Payoffs, or a Short Refinance. This is where the current lender accepts less than owed, to help the homeowner get into a safe, new loan based on current values. This program allows late payments on the mortgage.
FHA Hope for Homeowners - This is another FHA program that facilitates Short Refinances of your current loan. This program allows some mortgage lates, and gives the banks clear criteria for how much they will receive when agreeing to enter into the Short Refinance into a Hope for Homeowners loan. This loan does have an equity sharing agreement, where the homeowner must agree to share future appreciation in their home above the new lower loan amount with FHA in the event they Refinance or Sell their home in the next 10 years. This is a fair trade for the life preserver this loan offers.
The FHA 203K Streamline loan - This loan allows homeowners to Purchase or Refinance their property and include up to $35K of repair/upgrade work into the primary loan. This avoids the higher interest rates of Equity loans. You have one payment at a low fixed rate.
When it is time to purchase or refinance your home, contact the FHA experts at VanDyk Mortgage. 866-900-2342 toll free or online at http://www.vandykfunding.com/
VanDyk Mortgage is a FHA Direct Lender doing FHA loans (and Fannie / Freddie loans too) in many states including California, Washington, Florida, Georgia, and more.
All comparisons are based on a purchase price of $250K, fico score of 675, and full documentation. Rates are example only, presented for sample scenario comparison only.
Fannie & Freddie require a minimum of 10% down in California (are capped at 90% LTV).
FHA requires just 3% down (goes to 97%). You can keep the 7% difference in the bank, which gives you liquidity, security, and peace of mind. (the difference is $17,500) The payment difference is minimal (see below for detailed comparison).
Mortgage Insurance Qualification: Fannie & Freddie utilize private mortgage insurance, which requires a second underwriting process from the Private Mortgage Insurance company the lender utilizes. These companies have increased the thresholds for homeownership in recent months. For instance, They require atleast a 10% downpayment in California & have additional underwriting criteria for homeowners or homebuyers in Declining states such as California. **FHA requires just 3% downpayment nationwide, with no adjustments or additional criteria for Declining Markets.
The monthly mortgage insurance rate on Private Mortgage Insurance is between .62% -.78%. Monthly Insurance Premiums for FHA are just .55%. Even more appealing is that the FHA premium is for a 3% downpayment, whereas the private Mortgage Insurance rates are for 10% down payment.
The Private Mortgage Insurance companies do allow a program called "Lender Paid MI" (MI = Mortgage Insurance). With this program you are still capped at 90% in California, however the cost is not paid monthly, it is paid with a higher interest rate. Typically .75% is added to your rate to cover the cost of the Lender Paid MI.
FHA does have a second Mortgage Insurance cost, the Upfront Mortgage Insurance Premium (UFMIP). This amount is 1.5% (soon to increase to 1.75%, which we will us in our example). This lump sum fee can be paid either in cash at closing, or added to your loan amount. Adding the UFMIP to your loan amount is the most common method. However, if you are receiving a large seller credit towards your closing costs, these can be applied to your UFMIP.
Fannie & Freddie require a 620 minimum score to put down less than 20% (ie go over 80%).
FHA has no minimum. However, most FHA Lenders do require a 550 mid fico score.
Fannie & Freddie have price premiums or increased rates for loans that are over 80%. FHA does not increase the rate in this manner.
Here are the real numbers for the sample scenario above ($250K purchase price, 675 mid fico score, purchase loan, California home)
**All amounts are estimates only, provided only to show the comparison between these loan programs on a given day for a sample scenario.
The FHA Loan is the safest overall option, as it is safer to have a slightly higher Mortgage payment along with $17,500 in savings, than to put the extra money into your downpayment and save just a few dollars per month. You will have the $17,500 earning interest, available for emergencies, and diversifying where your money is stored. I think it is safe to say that storing money in your home is not the safest method of savings.
FHA also offers a couple of programs that Fannie & Freddie do not:
FHA Secure - for homeowners who want to refinance their ARM or Adjustable Rate Mortgage into a safe, secure, fixed rate FHA Loan. This program even allows Short Payoffs, or a Short Refinance. This is where the current lender accepts less than owed, to help the homeowner get into a safe, new loan based on current values. This program allows late payments on the mortgage.
FHA Hope for Homeowners - This is another FHA program that facilitates Short Refinances of your current loan. This program allows some mortgage lates, and gives the banks clear criteria for how much they will receive when agreeing to enter into the Short Refinance into a Hope for Homeowners loan. This loan does have an equity sharing agreement, where the homeowner must agree to share future appreciation in their home above the new lower loan amount with FHA in the event they Refinance or Sell their home in the next 10 years. This is a fair trade for the life preserver this loan offers.
The FHA 203K Streamline loan - This loan allows homeowners to Purchase or Refinance their property and include up to $35K of repair/upgrade work into the primary loan. This avoids the higher interest rates of Equity loans. You have one payment at a low fixed rate.
When it is time to purchase or refinance your home, contact the FHA experts at VanDyk Mortgage. 866-900-2342 toll free or online at http://www.vandykfunding.com/
VanDyk Mortgage is a FHA Direct Lender doing FHA loans (and Fannie / Freddie loans too) in many states including California, Washington, Florida, Georgia, and more.
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