Posts Tagged mortgages
What Does Yesterdays Budget Hold For Contractors?
Yesterdays Budget was a pretty low-key affair mainly due to the upcoming general election. To quote the BBC’s Political Editor Nick Robinson, when summarising the budget “Short on economic announcements, but long on party political statements.”
The main notes of importance where contractors are concerned were that VAT, NIC on dividends from PSCs, IR35, Section 660, and Umbrella Company expenses remain unchanged.
The headline of yesterday’s budget was undoubtedly the changes in Stamp Duty limits which can be classed as both good and bad news for contractors.
The Stamp Duty limit for first-time buyers doubled to £250,000 for this year from midnight last night. Funded by an increase in stamp duty to 5% on homes worth over £1m.
This change gives buyers an increased incentive to negotiate hard to keep transactions below these levels as significant savings can be made. With the majority of property transactions in the UK falling below or around the £250,000 boundary means that if you are purchasing around this price then it would be to your advantage to negotiate below the threshold for a £7,500 saving in tax.
It will also be interesting to see the impact of yesterday’s announcement to prices of properties around the £1million mark. With stamp duty rising to 5% for properties of this size, any transaction over this limit will come with a minimum of £10,000 in additional tax.
If you want to calculate how much you could borrow based on your daily you should contact a Contractor Mortgage Specialist such as Contractor Mortgages Made Easy.
To summarise the other main changes that may affect contractors from yesterday’s budget:
Annual ISA limit From April your Individual Savings Allowance will increase to £10,200 for the 2010 to 2011 tax year. This limit is also set to increase annually in line with inflation.
Inheritance tax threshold has been frozen at £325,000 for four years.
Fuel duty of 3p a litre increase will be staggered with 1p in April, a further 1p rise in October, and the rest in January.
Alcohol duties increase 2% above inflation.
Entrepreneurs’ relief for Capital Gains Tax doubled to £2m and taxed at 10%. Business rates will be cut for one year from October. Annual investment allowance doubled to £100,000.
RBS and Lloyds Banking Group will provide a total of £94bn of new business loans, nearly half to smaller firms, and a further £11bn to households.
The following announcements from last years Pre-Budget Report were also confirmed:
- 1p National Insurance Contributions from April 2011
- 50% tax band for contractors earning over £150k
- Contractors earning over £100k will see personal allowances gradually removed
A point to note for contractors utilising tax-efficient remuneration strategies, such as offshore trusts, and EBT type arrangements.
A press notice released alongside yesterdays Budget statement announced an attack on payroll and offshore “schemes” that exploit several tax “loopholes.”
The notice, from Her Majesty’s Treasury says: “The government is taking further action to change the game for those seeking to bend or break the rules on tax.” If you are concerned that you may be involved in one of these schemes then we recommend that you request professional advice on the situation.
To summarise, yesterday’s budget will not have had any significant effects on the majority of contractors with no shock announcement or extreme measures, however the stamp duty changes are great news to any contractor looking to take their first step onto the property ladder.
This article has been published with permission of Contractor Mortgages Made Easy Contractor Mortgages Made Easy are a whole of market mortgage broker who specialise in securing bespoke Mortgages For Contractors
Where to Get Mortgages From
Everyone – the young and the old, male or female, the frugal and the extravagant – go through tough times. Worse, times are truly tougher now than they ever were and more and more people now look to get their hands on money to keep their head above water financially. With so many in need, finding a loan can be very difficult, especially if you have not so impressive credit. Credit companies are taking every opportunity to bring down credit scores. So, where do you get mortgages from? Who do you go to? Where do you find them?
Mortgage Brokers
More than half of all mortgages made in the U.S came from mortgage brokers. A broker is a middleman who brings lenders and borrowers together. These brokers work with different lenders – a lot of lenders, in fact. It’s not impossible for one broker to work with as many as 200 lenders, perhaps even more.
If you’re thinking of dealing with a broker, keep in mind that your choices depend on your broker’s working relationships. Keep in mind, too, that the fees may be paid by the lender or the buyer, or by both. Some brokers operate up-front, which means they will negotiate their fees directly with buyers and in exchange, they will shop for the lowest possible wholesale interest fees and rates.
Mortgage Bankers
These bankers work for banks, and they usually represent more than one. However, no matter how many banks they represent, the loan they give out are bank-funded. There are upsides and downsides to dealing with mortgage bankers. First off, the fees they can offer you are usually non-negotiable because they have been set by bank policy. Also, the loan products for you to look at are limited only to what the bank is offering.
Commercial Banks
Wells Fargo, the Bank of America, and Citigroup are only three of the many reputable commercial banks in the country. The good thing about commercial banks is that they provide a wide range of services. Moreover, you do not have to go out of your way to look for one. You most likely have one in your neighborhood! Additionally, you do not have to worry that you may not be getting the best rates possible. On top of the rates being competitive, the bank may even offer you an incentive or a discount if you keep a savings or checking account with them!
Credit Unions
Credit unions are not required to pay federal taxes. They also enjoy tax advantages that other lending groups cannot. The good news is that they pass on these benefits to people like you and me. You can expect mortgages from credit unions to come with very attractive terms and rates. I suggest you go to the credit union nearest you and see which of their mortgages are up for grabs.
Mortgages can seem confusing but once you work with the right people, you will be surprised at how simple and basic everything is. Find the right person or group to get a mortgage from. When you do, the rest will fall into place.
Allegro Mortgages Corp. – Best Broker for All Your Financing Requirements
(416) 987-0008
On the lookout for mortgages with the best terms and rates? The mortgages Toronto lenders provide and the terms for refinancing Vaughan providers offer are worth a second look or two!
FHA Loans Are a Great Option For First-Time Home Buyers!
Posted by Victoria Belle-Miller in Finances on 04/20/2010
For a first-time home buyer, the process of buying his or her first home can be complicated and expensive, but it doesn’t have to be! FHA loans have flexible requirements and actually save first-time home buyers large sums of money both upfront and in the long run. These loans offer multiple benefits and are not difficult to qualify for!
Benefits of this Type of Financing
While many home loans can require large down payments, this type of loan has a low down payment requirement. The down payment is usually about 3.5% of the purchase price. Applicants who are just starting out may not have a large sum of money to pay up front, so this loan would be very beneficial to them. New homeowners can use the money they save to pay for the many other expenses associated with buying a new home.
These loans are insured by the Federal Housing Administration (FHA), which makes lenders more likely to offer low interest rates. Interest rates fluctuate daily, but these loans often have lower interest rates when compared to other types of home loans. With a lower interest rate, homeowners save money on their monthly mortgage payments and over time. This leaves more money in their pockets every month for all of their other expenses.
Loan Requirements
This type of financing does have certain requirements for borrowers. An appraisal will be done to determine the home’s value and to ensure that the home is hazard-free and structurally sound. At closing, the borrower must pay an upfront mortgage insurance premium to cover the costs of the loan in case of default. This mortgage insurance premium is usually equal to about 1.75% of the total loan amount. Also, the borrower will have to escrow his or her property taxes and homeowner’s insurance into an account to keep payments up to date.
The FHA does not have strict credit and income requirements. The borrower needs to have gone at least twelve months without any delinquent rent payments and should have a credit score of at least 620. In some cases, a borrower with a credit score lower than 620 can still qualify for a loan, but may have to make a higher down payment. Borrowers must also be financing a home that is considered to be their primary residence, which means they will live there at least six months out of the year.
Now is the Time to Take Action!
Current FHA guidelines are scheduled to change this spring. First, the down payment requirement will be higher for borrowers with credit scores lower than 580. Secondly, the required mortgage insurance premium will increase to 2.25%, which will increase home buyers’ upfront costs. Third, the amount of seller concessions permitted will soon be capped at 3%. These changes are meant to improve the viability of the FHA loan program.
First-time home buyers who apply for a loan and have a purchase contract by April 30, 2010 can also take advantage of the first-time homebuyer tax credit, which can provide up to $8000 in tax credits. This is yet another way for them to save money with their FHA loans. This incentive ends soon, so borrowers who want to use the tax credit should act now!
First-time home buyers who want to enjoy the benefits of an FHA loan, and save money by avoiding the upcoming changes, should contact an FHA loan specialist for more information about how to apply.
Victoria Belle-Miller is the newest member of the FHAMortgageBank.com writing staff. Her background in journalistic writing and ability to evaluate the issues that Americans face in daily life make her a strong addition to the FHA loans team and a valuable source of sound mortgage advice.
How To Obtain Lower Home Loan Rates
Posted by Travis Kitsap in Finances on 04/19/2010
Home loan rate may not be completely within your control, however you do have some control nonetheless. With this article, you’ll find helpful tips to help you locate lower home loan rates and more competive loan programs. Most homebuyers know that clicking their heels while envisioning a future home is not enough to nab the most affordable mortgage. However, many homebuyers don’t know that getting an affordable home loan payment is not simply up to their lender. By taking some steps, homeowners can grab onto both lower home loan rates and payments for their dream homes.
1. Home Loan Payment Budget Assessment
First, take some time to understand what you can afford by crunching the figures of your monthly spending habits. Calculate how much money each month goes towards rent, insurance, car payments, groceries, credit card bills and kids. Remember to calculate larger annual expenses like vacations and gift-giving seasons. After realizing how much of your income goes towards your basic expenses, you can now more clearly see how much money is free to go towards homeowner expenses. Remember that joining the homeowners club doesn’t happen with one single, simple monthly mortgage payment. Home loan payments, on top of principal and interest payments, include property tax and homeowners insurance. Don’t forget essential additional payments like maintenance, utility bills and extras like outfitting and furnishing your home according to your budget and lifestyle.
2. Credit Cleansing For A Home Loan:
You can make yourself a magnet for lower home loan rates and payments via cleaning your credit. To secure those affordable mortgages with a lower interest rates, you need to lower your credit score. Experts recommend that you order your statement far ahead of any mortgage seeking process and that you take at least 6 months to clean up your credit. You can easily do this by making on time payments, paying off debts, and closing any unused credit accounts. The longer your history of good credit, the better your chance to secure a mortgage with a lower rate. So buckling down to work towards a clean credit history can pay off.
3. Shopping Home Loan Rates Online:
In order to understand what kind of home loan rates are available, jump online. Before entering into the emotionally charged arena of home grabbing, arm yourself with an informed understanding of the kinds of mortgages available to you. Online lending sites provide a wide variety of lenders from across the nation and offer handy, effective comparisons. These powerful resources save you from spending time on lengthy research, and in the end you are aware of a range of mortgage options from lenders near and far.
4. Securing Home Loan Interest Rates:
Now you are ready to see what your lender will allow to spend on a house. Once you hit the markets for house shopping, your chosen lender will pre-qualify you. You provide your credit score, income, liabilities, assets, and credit card expenses. In return you are pre-qualified and have an idea of what kind of market range you can shop in. Once your heart is set on your desired home, ask your chosen lender to pre-approve your loan so that you can make an firm, serious offer. You provide hard documents so that your lender can officially offer you a loan pre-approval.
5. Conclusion:
With some research and preparation homebuyers can secure lower home loan rates. As mortgages can be the biggest monthly burden for most households, you can reasonably spend some time to maximize your mortgage offers and secure a lower monthly payment. By following some basic tips in preparing and informing yourself about your options, your mortgage just might turn out to be your best investment.
The author writes about current Home Loan Rates and programs and may visit the site http://www.paramountfinancial.com for more home financing tips.
Property Investments: 5 Tips to a Good Investment Strategy
Posted by Paul Smiths in Real Estate on 04/18/2010
Are you into property investments? Have you realised that there are strategies to make a good one? It is true that people have varying property investment strategies but only a few can make good ones. And this is the reason why you should learn about the real good strategies to this type of endeavour.
The important thing you should remember in making property investments is to ask yourself a couple of questions. Are you willing to take some risks as it is not always a sunny day in this type of investment? Do you have a specific schedule to follow? Will you be able to give some time making your property portfolio?
5 tips for better property investments
There are some factors that may affect your property investments. Some of these are:
1. Market cycles. You know very well that there’s a time in your life when you should invest on a property. The problem is you don’t know the proper timing to take note of. And when speaking of timing, considering the market is important. You have to identify when it’s right time to make a move or not.
2. You must also consider the location of the property. Find one that is most favourable to you. Ask yourself questions such as: “Does it belong to a child-friendly neighbourhood?” “Is it a safe community to live in?” “Do I have access to public places such as schools and health centres?”
3. Know the reason behind why you’re making property investments at the moment. Is it simply for the fact that you need a place to live in? Or is it because you want to sell the house to buy another one in the future? If it is for the second reason, then you should be able to know if the property’s value will appreciate. You have to study how the real estate market goes in your target location. Check the trend and see if it will be of good help to you for future sales.
4. You must also possess the best traits any property investor can have. Always have the correct mindset alongside with proper background on real estate matters. You should also exhaust some means on where you can find bargain property. Learn how to negotiate a deal and see to it that you can haggle for the price that you want.
5. Invest on some tools that will help. It won’t hurt if you browse on some real estate websites offering you with advice on property investments. There are plenty of tools online. If you’re lucky enough, you will also be able to get free quotes for the home you want to invest on. As mentioned, making some researches will always help.
The tips to making property investments can be very simple. You just need to have the guts and the proper know-how to fulfil your tasks. Plus you should also have the right attitude in dealing with both buyers and sellers. Don’t limit your sources to what you see around you. It won’t hurt if you exhaust efforts to extend an extra mile.
Making moving property investments can be crucial to any buyer or seller. You can get some help on moving real estate investment through this site.
Home Mortgage Loan: 9 Things You Should Know About It
Posted by Paul Smiths in Real Estate on 04/18/2010
Do you think you already know everything about home mortgage loan? Well, think again. There are some facts that you might still need to dig into if you are eyeing to buy real estate property. These facts include things about possibilities of saving money on your investment.
9 things you still ought to know about home mortgage loan
Learning about home mortgage loan should be a concern for every home buyer. It should not mainly be a concern of the lender or the real estate agent. You should educate yourself with some facts on this process.
1. Interest rates can save you some cash. For instance the home mortgage rate is set at 8.0% whilst the interest rate in the market is 7.0%. To get the lower rate, you may have a refinanced mortgage. The 1.0% savings may not be that much at the moment but as soon as you’ve paid about 36 to 48 months on your amortisation, things will change. You’ll save more.
2. Zero down payments are possible. This is for those with limited income as well as first time homebuyers. Aside from this, government agencies may pay the closing cost for you.
3. There is also such a thing as adjustable rate mortgage. This type of mortgage rate may have had a bad reputation in the past. This is due to the fact that the rates seem to fluctuate every year. Truth is the ARM can save you much. Typically, this is set at a rate of only 5.8% compared to traditional rates amounting to about 6.3%.
4. ARM is not fluctuating that often. For those of you who are thinking of ARM for your home mortgage loan, there’s no reason for you to back out. Whilst the rates can fluctuate from time to time, it can’t go over the roof. There’s a cap governing ARM rates.
5. Hiring mortgage brokers will help. Don’t be afraid of them just because of hearsays about their fees. They’re not always about the money. They are concerned with giving you the right home mortgage loan. They make researches on all these matters.
6. But, there are instances when you won’t need mortgage brokers. If you have a perfect credit score and you’ll be able to pay for the required 20% down payment, you won’t need mortgage brokers. The lenders and realtors can do most of the tasks for you.
7. You can get good home mortgage loan interests from banks. They can do the researches for you and some might even offer 1% less the interest rates offered by other lenders.
8. The Internet is also a great source of home mortgage loan tools. You can use online calculators to compute for mortgage fees. There are tools that can help you see how much of the amortisation is applied to the principal amount of the loan.
9. There is a “portable” home mortgage loan in the market. What does this mean? You can carry the home mortgage from one house to another. You just have to pay for some interest fee for each transfer.
After knowing the things you still don’t know about home mortgage loan, you will be armed with the right tools before you get one. You’ll realise that the process can be very beneficial on your end.
There are more facts about mortgage loan when moving home and real estate removals found on these sites.
Things You Must Know About Mortgages
You know, mortgages aren’t exactly a bad thing. For one, without, how would anyone be able to fulfill their dream of having a house to call their own. Not everyone’s pockets are lined with dollar bills. And even so, only the ridiculously rich can spend millions on a house with one payout without even blinking.
Let’s face it, without mortgages, we’d all be stuck in houses that we rent. Nothing to call our own.
But that doesn’t mean that taking out a mortgage would be the answer to all your problems. Like everything else in this world, these things come with risks. And it’s up to you to determine if these risks are worth the bigger picture, having a place to call your own. So before you jump into something as major as this, it’s best that you arm yourself with everything you can learn about this.
That way, you know exactly what it is that you are getting into.
Defining a mortgage
Webster’s dictionary defines mortgage as “pledging of property to a creditor as security for the payment of a debt.” What this means exactly is that if you’re no longer able to make the payments as per your agreements when you made the loan (including fees and interests), then the lender (like the bank) would be able to have your house. Basically, you take out a loan to buy a house, and then your house is used as the collateral until such time that the loan has been paid off.
In some states that follow the “title theory,” the lender actually holds the title to your property until such time that payments are complete. And if you can’t make the mortgage payments, then the lender can very well sell the house so they can get their money back. Some states follow the “lien theory,” which means that that the mortgagee holds a lien over your property, and they can foreclose this lien and sell the property if the debt is defaulted.
Understanding down payment
This term comes along with discussions on mortgages and is an equally important part of the process. In fact, this practically is the start of the whole thing. The down payment is basically the lump sum, which is paid upfront. This also reduces the amount that needs to be financed. You can pay as much as you want so you can lessen your payments down the road. Or, if you’re a little strapped for cash at the moment, you can pay as little as 3 to 5 percent of the property’s purchase price.
How long do you need to pay off a mortgage?
With most mortgages, it will have a payment period of fifteen to thirty years. However, some lenders will offer a longer payment period, extending up to forty to fifty years.
How do I know if I can get a mortgage?
There are certain things that lenders consider before you can be allowed to take a mortgage. They will take a look at several financial indicators, like your employment history, credit score, income, and your debt-to-income ratio. They will need to determine that you will be able to promptly make the loan payments within the payment period agreed upon. And if they determine that that would be the case, then they issue you a mortgage.
The reality is that not a lot of people would be able to save enough so they can buy their own house. But with mortgages, owning your dream house would become a reality. So take that careful step and give your family a chance to call a home your very own.
Allegro Mortgages Corp. – Best Broker for All Your Financing Requirements
(416) 987-0008
There are so many information available about mortgages that can be found everywhere. If you’re looking for a place with reasonable mortgages, Toronto rates are enough to convince you that your dream house is possible. With a reasonable mortgages, maple leaves falling down the trees during autumn right outside.
5 Tips on How to Get Mortgage Loan When You’re Bankrupt
Posted by Bill Johnsons in Real Estate on 03/15/2010
Are you afraid of being denied a mortgage loan because you were once bankrupt in the past? There’s no reason to be sad. You should not be hesitant to ask about mortgage loan just because you once had a bad credit rating. Leave the past behind and try moving forward, so to speak.
But, face it. You have to do some homework if you want to patch things up. The success of being granted a mortgage loan depends upon your willingness to assume your duties. Don’t leave anything to chances.
What then are the things you should do when you want mortgage loan after bankruptcy?
Fix things up. This is the best sentence that can describe your tasks in getting a mortgage loan after you’re bankrupt. Specifically, here are 5 tips you should bear in mind:
1. Forget about your past habits in paying your loans. If you didn’t pay your dues well in the past then you should strive hard to change that now. Pay on time and make sure you also make full payment. This time, missing a payment due date is unforgivable. Prepare a schedule to make sure you won’t miss any payments. Put your electronic organiser on the works.
2. Make most out of your time whilst you’re bankrupt. This means you should repair your credit. Bankruptcy may take you one to three years before you’ll be granted another loan. So during that span of time, you better make sure that you pay all your bills on time.
3. Make sure you have a proof of regular income. You can’t be granted a mortgage loan if you don’t have any papers to show. Aside from your credit score, lenders will look at documents showing you have a source of income. Prepare your pay stubs or pay slips six months before you intend to make a mortgage loan. Show proof that you’ve had a bank account for the past six months and make sure you’re ready with two years of tax returns.
4. Begin to save some money. This will be for your 20% down payment on a home’s purchase price. You may also consider saving more so that you won’t stick to the minimum 20% down payment. It will be better for someone like you who had gone bankrupt in the past to pay at least an amount higher than the 20%.
5.Consider buying foreclosed homes. Don’t ever think that these properties are no longer in good shape. To make sure you’re getting the right home, scrutinise all details about the property. You should see the home for yourself before you also think of buying it. Foreclosed homes may be cheaper too. This means you can save much on your investment. And some of these homes may be bought with a mortgage loan. You don’t have to pay outright for them.
Now, do you still think getting mortgage loan is impossible if you have been bankrupt in the past? After reading all the tips mentioned above, there’s more reason for you to see things on a brighter side.
Were you once bankrupt? Well, don’t worry as you can still obtain london mortgage loan. More tips about this on this moving real estate site.
Real Estate Investment Risks: 6 Ways To Eliminate Them
Posted by Bill Johnsons in Real Estate on 03/15/2010
Making a real estate investment can result to a lot of stresses. Both buyers and sellers will get to feel all the pressure that goes with the deal. If you’re looking to invest on real estate, you should by all means eliminate all these risks.
Knowledge is the key to getting rid of all real estate investment risks. When you have a background on what you’re doing, you can never go wrong. Therefore, it is essential to further your searches. This is to make sure you can provide solutions to problems that may arise during your deal with the seller.
Eliminating real estate investment risks
This is fairly simple. You just have to be patient if you want to get rid of these real estate investment risks. Take time to learn some facts about this industry.
1. Check on the property you want to buy. You know what you want so you have the licence to scrutinise every property you come across with. Never stick to one seller even if his offer is enticing. Be wise enough to expand your buying searches.
2. Learn more about the real estate market. Updates are made daily so you better watch out for that. You may get fresher ideas each time you browse into real property listings. Don’t be too impatient to go through this task.
3. Know more about real estate investment laws. You don’t have to be a lawyer to be able to do that. There may be some terms you won’t understand but these can be explained to you very well. In this regard, never hesitate to ask questions to those who have knowledge on these matters. It is also best to extend your researches through foreclosure laws. You may even find low-cost homes when doing this research.
4. Know more about market trends. You can predict how the real estate industry goes when you know interest and market rates. You will be able to haggle with the price you want if you learn about these market trends. Know when it is bad time to buy real estate property the way you want to know when it is good to invest on one.
5. Inspect contracts arising from the deal. Never sign one unless you’ve gone through each clause. Learn what these statements mean. You don’t want to be shocked by costs you have never been prepared for. So better see to it that the contract enumerates all cost details as well.
6. Last but not the least, research on companies and persons that may help. You can’t just do these tasks on your own. Whilst you want to save on cost by not hiring an agent, you may realise later on that it is better to seek help from this expert. Make sure however that you’re dealing with a reputable person or company.
Once you’ve went through all these researches, real estate investment will no longer bring you risks. It might even give you huge savings for your money. Aside from knowledge, be inquisitive. Don’t pretend that you know everything about real estate investment.
Looking for facts on real estate moving investment? You can find tons of insights on moving real estate through these pages.
Obtain Low VA Mortgage Rates and Save Money!
Posted by Victoria Belle-Miller in Finances on 03/13/2010
VA mortgages are a great financing option for both first time homebuyers and current homeowners. These types of loans have multiple benefits, including no down payment on purchases and no mortgage insurance. The absence of these costs, which are required on most mortgages today, saves borrowers money for their other expenses. Borrowers can also save money because this type of financing tends to have lower interest rates than other types of home loans.
Why Low Rates are Beneficial
First time homebuyers or homeowners who are purchasing a new home and are eligible for VA financing can receive a low VA mortgage rate on their home loan. Having a low interest rate will lower the borrower’s monthly mortgage payment and save him or her money in the long run. A borrower can use the money he or she saves for personal expenses or for other expenses related to the new home. First time homebuyers can also use the $8000 first time homebuyer tax credit to maximize their savings. The tax credit is slated to end in April, so first time homebuyers should consider taking advantage of this incentive now.
Obtaining lower rates by refinancing
Current homeowners can refinance their existing VA mortgages in order to receive lower interest rates on their home loans. There are a few different home-loan refinancing options homeowners can choose from. With a lower interest rate, a homeowner can lower his or her monthly mortgage payment and save a great deal of money in the long run. In addition to lowering one’s interest rate and monthly payment, refinancing also gives homeowners the option to change the terms of their loans, consolidate debt and/or take cash out.
Requirements to Qualify
To be eligible for this type of financing, the borrower must be either a veteran or a current member of the U.S. military. If the borrower is a veteran, in order to qualify for a loan, he or she must have been discharged under conditions other than dishonorable. There are certain other service length requirements that borrowers must also meet. A home loan specialist can help potential borrowers determine their service eligibility.
In addition to service requirements, an applicant must meet a residual income requirement and have an acceptable debt-to-income ratio so that the lender knows he or she can make the loan’s monthly payments. The VA does not require that applicants have a high credit score, but most lenders will require a credit score of at least 620.
In some cases, a veteran or current service member’s spouse may qualify for loan benefits in the event of a death caused by or related to military service or other special circumstances. Disabled veterans who were disabled while in service or as a result of service may be entitled to additional loan benefits, such as being exempt from paying the loan funding fee. They may also be able to receive accommodation grants that they can use to make their home more accessible for their disabilities, or they may be exempt from having to pay property taxes, depending on the laws in the state in which they reside.
This type of loan is a great financial solution for those who have served our country. Borrowers can receive low interest rates, which will lower their monthly payments and leave them with more money for their other expenses. The absence of mortgage insurance and a down payment (for purchases) saves borrowers even more money overall. Interest rates are continually fluctuating, so now is a great time to take advantage of low VA mortgage rates to save money on home financing.
Victoria Belle-Miller is the newest member of the VeteransLoans.com writing staff. Her background in journalistic writing and ability to evaluate the issues that Americans face in daily life make her a strong addition to the VA loans team and a valuable source of sound mortgage advice.