Your VA Home Benefit. Your VA Home Benefit. What We Will Cover in This Class. Basic Elements of VA Guarantee

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A Complete Guide to

Your VA Home Benefit

We will begin Shortly

Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act License #4130745; Equal Housing Lender. Registered with the Nationwide Mortgage Licensing System and Registry, Broadview Mortgage #170528 Long Beach Branch DOB# 813K754 NMLS# 965157

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Questions about Qualifying?

Call (562) 394-0378 or (888) 808-8062 or email: [email protected]

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What We Will Cover in This Class

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Basic Elements of VA Guaranteed Loan

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Rules for Eligibility

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Qualifying Basics - Getting Approved

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Overcoming Credit Challenges

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Additional Assistance & Tax Exemptions

Questions about Qualifying?

Your VA Home Benefit

Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act License #4130745; Equal Housing Lender. Registered with the Nationwide Mortgage Licensing System and

Basic Elements of VA Guarantee

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No Downpayment Required*

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No Max Loan Amount - *County Limits

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VA Guarantee vs Mortgage Insurance

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Must Be Owner Occupied

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Interest Rates & Closing Costs

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Available to Purchase or Refinance a Home

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Funding Fee Options

Questions about Qualifying?

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Loan Program Options

Questions about Qualifying?

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Standard Balance 30,25,20,15,10 Year Fixed Rate

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High Balance ($417,001+) 30 & 15 Year Fixed Rate

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Purchase of 1-4 Units OK - Owner Occupied only

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IRRRL - Interest Rate Reduction Refinance Loan

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Interest Rate Reduction Refinance

Questions about Qualifying?

Your VA Home Benefit

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Reduced paperwork, reduced cost refinance

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Reduced VA funding fee of .50% (instead of 2.15%)

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No Income or Asset documents required - No DTI

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“Drive by” Appraisal waived in some cases

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Must have paid VA loan on-time for past 12 months

Funding Fee Options

Questions about Qualifying?

Your VA Home Benefit

Service Transaction Down Payment First Time Use Subsequent Use

Purchase 0% to 4.99% 2.15% 3.30% Regular! Purchase 5% to 9.99% 1.50% 1.50% Military Purchase 10% or more 1.25% 1.25% Refinance Any 2.15% 3.30% Purchase 0% to 4.99% 2.40% 3.30% Reserves Purchase 5% to 9.99% 1.75% 1.75%

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General Rules for Eligibility

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Honorable Discharge 9/15/40 - 9/7/80

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90 Days or more, any part during wartime, or

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181 continuous days or more during peacetime

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Exceptions include Service Related Discharge

Questions about Qualifying?

Army, Navy, Air Force, Marine Corp, Coast Guard

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General Rules for Eligibility

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2 Year Requirement for Veterans who:

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Enlisted (and service began) after 9/7/80, or

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Entered service as an officer after 8/16/81

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24 continuous months of active duty, or

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Full period for which called or ordered to active

duty, but not less than 90 days (any part during

wartime) or 181 continuous days (peacetime)

Questions about Qualifying?

Your VA Home Benefit

Army, Navy, Air Force, Marine Corp, Coast Guard

General Rules for Eligibility

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Completion of 6 years of Service unless,

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Early release due to service related injury

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Inactive status awaiting final discharge

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Still serving in the Reserve

Questions about Qualifying?

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General Rules for Eligibility

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Unmarried surviving spouse of Veteran who dies

from service or service-connected causes

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Surviving spouse of Veteran who dies from

service or service-connected causes, who remarries

on or after age 57 and on or after 12/16/2003

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POW/MIA Spouses - Listed for at least 90 days*

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one time only use of VA Home Benefit

Questions about Qualifying?

Eligibility for Spouses of Veterans

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Qualifying Basics - Getting Approved

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Must live in Home as Primary Residence

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Can only have One (1) VA Loan

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No Non-Spouse, Non-Veteran Borrowers

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All Borrowers need Social Security #

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Must have minimum 1 Credit Score

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Automated Underwriter Determines DTI

Questions about Qualifying?

Your VA Home Benefit

Qualifying Basics - Getting Approved

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Min Credit Score 620 up to $417,000

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Min 660 over $417,000 or Manual UW

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No Reserves Required for SFR

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6 Months Reserves for 2-4 O/O Units

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Steady Employment - Work History

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Ability to Repay - Residual Income

Questions about Qualifying?

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Manual Underwriting Approval

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Min 660 Credit Score

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Debt to Income Ratio Restricted to 41%

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Underwriter will Review Complete File

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NOT Easier to Qualify

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Use for Credit Errors or Exceptions

Questions about Qualifying?

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California Residual Income Chart

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Family size of 1 = $491

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Family size of 2 = $823

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Family size of 3 = $990

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Family size of 4 = $1,117

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Family size of 5 = $1,158

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Family size over 5 = Add $80 for

each additional member up to family of 7

Questions about Qualifying?

Your VA Home Benefit

Loan Amounts of $80,000 and Above

Overcoming Credit Challenges

Questions about Qualifying?

Your VA Home Benefit

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It’s NOT Always Bad Credit

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Not Enough Good Credit is Most Common

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Credit Cards are Actually Good

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High Balances are Really Bad

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FICO Boost Secret - www.OptOutPreScreen.com

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Overcoming Credit Challenges

Questions about Qualifying?

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Overcoming Credit Challenges

Questions about Qualifying?

Your VA Home Benefit

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2 Years from Discharge of Bankruptcy

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2 Years from Foreclosure Date

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2 Years from Short Sale Date

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2 Years from Deed in Lieu of Foreclosure

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High Balance - 7 Years from Foreclosure or BK

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Default on VA Loan May Affect Entitlement

Boomerang Buyer Waiting Periods

Buyer Assistance & Tax Exemptions

Questions about Qualifying?

Your VA Home Benefit

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CalHFA CHDAP - Must use CHDAP income limits

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CHF Platinum & SCHFA Homebuyer Grant

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Mortgage Credit Certificates - MCC

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County Property Tax Disabled Veteran Exemption

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CalHFA Qualified Veteran Exemption

Questions about Qualifying?

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Disabled Veteran Tax Exemption

Questions about Qualifying?

Your VA Home Benefit

http://ocgov.com/gov/assessor/exempt/veterans

Orange County Veteran & Disable Veteran Exemption

LA County Veteran & Disable Veteran Exemption

http://assessor.lacounty.gov/extranet/guides/exemptions.aspx

Exemptions Reduce Tax Assessed Value of Home

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A Complete Guide to

Your VA Home Benefit

Thank you for Attending

Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act