What is the debt-to-income ratio for FHA loans?
The FHA allows you to use 29% of your income towards housing costs and 41% towards housing expenses and other long-term debt. With a conventional loan, this qualifying ratio allows only 28% toward housing and 36% towards housing and other debt.

FHA Mortgage Insurance
FHA requires a mortgage insurance premium (MIP) for its home buying programs. An up-front premium of 1.50% of the loan amount is paid at closing and can be financed into the mortgage amount. In addition, there is a monthly MIP amount included in the PITI of 50%. Condos do not require up front MIP - only monthly MIP. The mortgage insurance premium paid on an FHA loan is always significantly higher than on a conventional program. On a FHA loan the borrower will be charged a mortgage insurance premium equal to 1.50% of the loan amount and a renewal premium of .500% in subsequent years. By contrast the mortgage insurance premium charged at closing on a conventional program is as low as .500% (with 10% down payment) with renewal rate in subsequent years as low as .300% in subsequent years.

Down Payment Gifts
The down payment can be 100% gift funds. This is one of the key benefits of a FHA program. Verification of the source of gift money is not required. However, it is necessary that the gift funds be deposited in the borrower's bank or savings account, or in an escrow account, prior to underwriting approval. Proof of deposit is required. Gift donors are restricted primarily to a relative of the borrower. They can also be certain organizations, such as a labor union or charitable organization. Call 1-800-33-LOAN-U for more information.

Streamline Refinancing for FHA Mortgages
FHA has permitted streamline refinances on insured mortgages since the early 1980's. The streamline refers only to the amount of documentation and underwriting that needs to be performed by the mortgage company, and does not mean that there are no costs involved in the transaction.

The basic requirements of a streamline refinance are:

• Borrower's original loan must already be an FHA insured loan.
• The mortgage to be refinanced must already be FHA insured.
• The mortgage to be refinanced should be current (not delinquent).
  
• The refinance must lower the principal and interest payments of the previous mortgage payment.
• No cash may be taken out on mortgages refinanced using the streamline refinance process.
• The mortgage must have been paid as agreed for the last twelve (12) months and must be up to date at the time of refinancing. Borrower must have had the FHA mortgage for 6 months.
• Borrower cannot receive any cash back.
• No income or employment verification - No pay stubs or W-2 forms - No termite report.
• Appraisal only required if rolling in the closing costs. Streamlines without an appraisal are limited to the unpaid principal balance, minus any refund credit of the mortgage insurance premium, plus the new upfront MIP if it is to be financed in the mortgage.
• Any other liens must be subordinated to the FHA loan.
• Borrower must be up-to-date on any federal debts.

Companies may offer streamline refinances in numerous ways. Very few companies offer "no cost" refinances (actually, no out-of-pocket expenses to the borrower) by charging a higher rate of interest on the new loan than if the borrower financed or paid the closing costs in cash. From this premium, the company pays any closing costs that are incurred on the transaction. Companies may offer streamline refinances and include the closing costs into the new mortgage amount. This can only be done if there is sufficient equity in the property, as determined by an appraisal. Streamline refinances can also be done without appraisals, but the new loan amount cannot exceed what is currently owed, i.e., closing costs may not be added to the new mortgage with those costs either paid in cash or through the premium rate as described above. Investment properties (properties in which the borrower does not reside in as his or her principal residence) may only be refinanced without an appraisal and, thus, closing costs may not be included in the new mortgage amount.

Bankruptcy and Foreclosure
A credit report will be obtained on the borrower and any lates, collections, judgments, foreclosures, bankruptcies, etc. must have a justifiable explanation in writing by the borrower. In the event of a foreclosure, the borrower has three years from the date the claim was paid until he/she is eligible for another FHA loan, unless the foreclosure was the result of extenuating circumstances beyond the borrower's control and the borrower has since established good credit.
     Chapter 7 bankruptcy requires the borrower to wait at least two years from the date of discharge.

     Chapter 13 bankruptcy requires the borrower to have been paying on the bankruptcy for at least one year, performance must have been satisfactory and the borrower must also receive court approval to enter into the mortgage transaction.

Are FHA loans assumable?
Yes. You can assume an existing FHA-insured loan, or, if you are the one deciding to sell, allow a buyer to assume yours. Assuming a loan can be very beneficial, since the process is stream lined and less expensive compared to that for a new loan? Also, assuming a loan can often result in a lower interest rate. The application process consists basically of a credit check and no property appraisal is required. And you must demonstrate that you have enough income to support the mortgage loan. In this way, qualifying to assume a loan is similar to the qualification requirements for a new one.

What is a streamline financing for VA loans?
The VA has created an Interest Rate Reduction Loan program called the Streamline Refinance. This provides a way for current VA homeowners to lower their interest rate with little or no out-of-pocket costs. These loans can also be made faster and with less documentation than a typical loan. This is only available to veterans who are refinancing their original VA mortgage and utilized their original eligibility.

Basics of VA streamline finance:

How do I apply for a VA guaranteed loan?
You can apply for a VA loan with any http://www.gbfloans.com/fullapp_purchase.cfm or call 1-800-33-LOAN-U.

How do I get a Certificate of Eligibility?

How can I obtain proof of military service?
You will need a copy of your DD214; if you don't have it you can request one at www.gbfloans.com. Standard Form 180, Request Pertaining to Military Records, is used to apply for proof of military service regardless of whether you served on regular active duty or in the selected reserves. VA does NOT process this request form. Rather, Standard Form 180 is completed and mailed to the appropriate custodian of military service records. Instructions are provided on the reverse of the form to assist in determining the correct forwarding address. Forms available free of cost at Greater Bay Funding. www.gbfloans.com or call 1-800-33-LOAN-U.

I have already obtained one VA loan. Can I get another one?
Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property. In either case, to obtain restoration of eligibility, the veteran must send VA a completed VA Form 26-1880 to one of our VA Eligibility Centers. To prevent delays in processing, it is also advisable to include evidence that the prior loan has been paid in full and, if applicable, the property disposed of. This evidence can be in the form of a paid-in-full statement from the former lender, or a copy of the HUD-1 settlement statement completed in connection with a sale of the property or refinance of the prior loan.

Is the surviving spouse of a deceased veteran eligible for the home loan benefit?
The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. If you wish to make application for the home loan benefit as a surviving spouse, contact one of our VA Eligibility Centers. In addition, a surviving spouse who obtained a VA home loan with the veteran prior to his or her death (regardless of the cause of death) may obtain a VA guaranteed interest rate reduction refinance loan. For more information, contact one of our VA Eligibility Centers.

Are the children of a living or deceased veteran eligible for the home loan benefit?
No, the children of an eligible veteran are not eligible for the home loan benefit.

What Is a VA Guaranteed Home Loan?
VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home, which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you or a later owner fails to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.

What is pre-purchase counseling and why is it helpful?
Pre-purchase counseling gives a person information on (1) the process of buying a home, (2) the key players in the home buying process, and (3) debt management. The goal is to create a better-informed homebuyer. While VA does not require such counseling, we strongly recommend it. There is usually no charge for the housing counseling.
To locate a housing counseling office call (800)217-6970 or visit HUDs website at www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm. The Department of Housing and Urban Development (HUD) maintains both the phone number and website.

What is a VA maximum loan limit?
There is no maximum VA loan but lenders will generally limit VA loans to $417,000. This is because lenders sell VA loans in the secondary market, which currently places a $417,000 limit on the loans. For loans up to $417,000, it is usually possible for qualified veterans to obtain no down payment financing.

How do I obtain a VA Home Loan?

What are the benefits of a VA home loan?

• ---

  Cal Vet Home Loans
  

  Term Cal Vet Home Loans  Definition The Cal Vet loan program is a program administered by the California Department of Veterans Affairs to meet the financing needs of qualified veterans purchasing single-family residences in the state. Cal Vet seeks to provide this benefit to the widest group of veterans in appreciation for their service to the country. You do not need to have lived in or been discharged in California to qualify. You can even start the process for getting pre qualified for Cal Vet loans right here online. Just click through on our link to learn more and get started.

  
  Cal Vet Loans Down payments
  Some VA loans are made with no down payment. Cal Vet loans are usually made with a 2 or 3 percent down payment. So although it's not completely down payment-free in most cases, your Cal Vet loan down payment is still going to be less than many other kinds of loans and you can borrow more money than the current VA limit of $359,650.
  It makes sense to look at a Cal Vet loan for the great savings and the increased purchasing power. A home, after all, is probably the largest purchase you'll ever make, and without a doubt, the most important. So don't delay, click through today and find out more about Cal Vet loans.
  
  Live In The State Of California?
  Cal Vet home loans are a great opportunity for veterans living in the State of California. You'll get the low interest rates, stable financing arrangements, and to top it all, your down payment will be low. The first step is to meet the requirements for the minimum amount of military service. Your Form DD214 that you received at your separation from the military will have the information needed to begin the qualification process.
  If your deceased spouse was eligible for a Cal Vet home loan, you could still apply. If you have already been through a foreclosure, don't despair, because you might still get a Cal Vet home loan. If you've paid your rent, or insurance payments or any other similar payment for twelve months or more without interruption, then Cal Vet may conclude that your period of bad credit is now ended. So contact us to find out more.

  Cal-Vet loan rates have always been flexible rates, changing infrequently based upon the cost of the bonds used. However, Cal Vet's bond portfolio is very stable and their costs are contained -- making it unlikely that Cal Vet will need to increase the interest rate once we help you obtain your Cal Vet loan. The last Cal Vet mortgage rate increase on existing Cal Vet loans was 1/4% in 1994
  
  

  Cal-Vet Interest Rates:
  1st time home buyers (Revenue Bonds) 4.5% Subject to income and purchase price limitations.
  Regular home purchases (General Obligation) 4.5% For Veterans who had active duty prior to 1-1-1977.
  

• General Obligation Bonds. (Unrestricted Funds) 4.99. For Veterans with other wartime era service.
• These rates are subject to change and do change with the economic conditions, call us for availability.


Cal-Vet Loan Fees:
Cal-Vet loan fees are reasonable when compared with other available loans on the market today. Just some of the standard fees are listed below:


· Appraisal fee, · Credit report, · Escrow fees (if not seller assisted),

· Funding fee, · Home inspection, · Loan guarantee fee,

· Loan origination, · Tax Impounds, · Title insurance, · Recording, etc.

The loan guarantee fee is based on: · The amount of the loan and · The size of the down payment. · There is no funding fee to a Veteran who puts 20% or more down or who is rated disabled by the VA and puts 10% or more down . Furthermore, this fee may be financed with the loan.


Maximum General Loan Amount:

Cal Vet / VA Existing Residential Home Purchase:

• $359,650 for a VA approved SFR, Condo or PUD
• 2% Down Payment Required
• 1.25% to 3% Funding Fee (may be financed)
• 1% Loan Origination Fee
• VA Certificate of Eligibility for full entitlement


Cal Vet 2000/97:

• $322,700 for new or existing SFR, Condo or PUD
• 3% Down payment
• 1.25 to 2% up front Funding Fee (paid in escrow)
• 1% Loan Origination Fee.


Cal Vet 80/20:

• $322,700 for new or existing SFR, Condo or PUD
• 20% Down Payment
• Zero = Funding Fee (none)
• 1% Loan Origination Fee
  

Cal-Vet Eligibility has been Expanded:

• Eligibility has been expanded to nearly every Veteran in California who is interested in buying a home.
• Peacetime-era Veterans are eligible.
• Wartime era Veterans are eligible, (regardless of when they served).
• First time home buyers who are Veterans, must meet income and purchase price limitations and Cal-Vet's Federal rules for revenue bond funds.


There are no prior-residency-requirements to qualify and each time you change your residence you can reapply for a new Cal-Vet loan - again and again. You must occupy the home as your primary residence and are subject to new eligibility and financial qualifications.


Certificate of Eligibility Form

All eligible Veterans must provide a: DD-214 - Certificate of Eligibility (if you do not have this form we can help you obtain it). Statement of Service must be provided if you are currently serving on active duty, it must state the qualifying date and character service being served. If you are dismissed from service you must have received an Honorable Discharge to qualify.


NOTE: All the paperwork above should be obtained before initially applying for the Cal-Vet loan. We can help assist you with the paperwork you need. To find out more E-mail us here:

Cal-Vet Qualifying Requirements:
Cal Vet loan eligibility is determined by when and how long the veteran served. Cal Vet currently has funds for all qualified wartime era veterans, regardless of when they served in the military. Cal Vet also has funds available for peacetime veterans who meet the criteria for Revenue Bond funds (first-time homebuyers or purchasers in targeted areas who meet income and purchase price limitations).

Era Dates and Length of Service:


• World War II 12/07/41 to 12/31/46 - 90 days
• Peace Time 07/26/47 to 06/26/50 - 181 continuous days
• Korean Conflict 06/27/50 to 01/31/55 - 90 days
• Post Korean 02/01/55 to 08/04/64 - 181 continuous days
• Vietnam 08/05/64 to 05/07/75 - 90 days
• Post Vietnam 05/08/75 to 09/07/80 - 181 continuous days
• Persian Gulf 08/02/90 to a date not yet determined.
• Enlisted after 09/08/80 – 24 months




War Time Applicants: Wartime service is defined as receipt of qualifying campaign or expeditionary medals. Unmarried surviving spouses of a deceased veteran may be eligible - your broker will contact the district office with your specific criteria's.



No Private Mortgage Insurance:
Cal-Vet loans help keep your mortgage payments down, by eliminating the need for 'Private Mortgage Insurance' premiums that are found in most low down payment loans

Are you ready to buy? Pre-qualify!
You can pre-qualify for a Cal-Vet loan right online by clicking Pre-Qualify Cal-Vet. By completing this short form we will be able to better assist you on qualifying Cal-Vet