• Direct Line: 407.256.8190 | Sign Up | Login
  • Blog Archives

    VA Home Loan Information | Vince Paige | Orlando Realtor

    Why get a VA loan over other types?

    Simply put, a VA Home Loan allows qualified buyers the opportunity to purchase a home with no down payment. There are also no monthly mortgage insurance premiums to pay, limitations on buyer’s closing costs, and an appraisal that informs the buyer of the property value.  For most loans on new houses, construction is inspected at appropriate stages and a 1-year warranty is required from the builder. VA also performs personal loan servicing and offers financial counseling to help veterans  having temporary financial difficulties.

    What if I’ve used a VA Home Loan Before?

    You can have previously-used entitlement “restored” one time only in order to purchase another home with a VA loan if the borrower has paid off the prior loan but still owns the property, and wants to use his entitlement to purchase a second home. This often occurs with active duty borrowers who PCS to a new station but want to keep their existing home for retirement. However if the prior loan has been paid off, AND the property is no longer owned, they can have their entitlement restored as many times as they want.  They can re-use their VA eligibility for every home purchase from the first to the last.

    Also, veterans who have used a VA loan before may still have remaining entitlement (see chart) to use for another VA loan. A veteran’s maximum entitlement is $89,912, and lenders will generally loan up to four times your available entitlement without a down payment, provided your income and credit qualifications are fine, and the property appraises for the asking price. Lenders may require that a combination of the guaranty entitlement and any cash down payment must equal at least 25 percent of the reasonable value or sales price of the property, whichever is less.

    Loan Amount Guaranty % Dollar Amount *Lender Amount
    Up to $45,000 50% $22,500 $90,000
    $45,001 – $56,250 40-50% $22,500 $90,000
    $56,251 – $144,000 40% $36,000 $144,000
    Over $144,000 25% $89,912 $417,000
    Manufactured Home or Lot 40% $20,000 $80,000
    *Lenders operate under their own regulations and guidelines in these matters

    For Alaska, Hawaii, Guam, and U.S. Virgin Islands? residents, note that maximum original loan amounts have now been increased 50 percent higher for first mortgages.

    Remaining entitlement and restoration of entitlement is not automatic. It can be requested through the nearest VA office by completing VA Form 26-1880. The entitlement may also be restored one time only if the veteran has repaid the prior VA loan in full but has not disposed of the property purchased with the prior VA loan.

    What service is not eligible for a VA Home Loan?

    You are not eligible for VA financing solely based upon service in World War I, Active Duty Training in the Reserves, or Active Duty Training in the National Guard. Note: Guard and Reservists are eligible if they were “activated” under the authority of title 10 U.S. Code as was the case for the Iraq/Afghanistan.

    Do all local lenders offer VA Loans?

    Not necessarily. Choose a VA-approved lending institution that can handle your home loan. A lender can help you review your credit history and determine how much of a loan you can qualify for. Be aware that different lenders have different closing costs and other fees, so it pays to shop around.

    What types of repayment options are available?

    The guarantees thirty-year loans with a choice of repayment plans: Traditional fixed payment (constant principal and interest); Graduated Payment Mortgage, or GPM (low initial payments which gradually rise to a level payment starting in the sixth year); and in some areas, Growing Equity Mortgages, or GEMs (gradually increasing payments with all of the increase applied to principal, resulting in an early payoff of the loan). There is no prepayment penalty.

    What is the maximum VA loan?

    Although there is no maximum VA loan (limited only by the reasonable value or the purchase price), lenders generally limit the maximum VA loan to $417,000.

    If I was discharged years ago and want to qualify for a VA loan, what forms or other documents will I need?

    Everyone is required to obtain a Certificate of Eligibility. If you do not have this Certificate, you will need to apply using VA Form 26-1880 and this will require a copy of DD-214 (Certificate of Release or Discharge from Active Duty) showing character of service. Along with the Certificate of Eligibility, loan applicants will need to document their credit, savings and employment information.

    Does a veteran’s home loan entitlement expire?

    No. Home loan entitlement is generally good until used if a person is on active duty. Once discharged or released from active duty before using an entitlement, a new determination of their eligibility must be made based on the length of service and the type of discharge received.

    Reservists are eligible for VA Loans, too. Who qualifies?

    Eligibility extends to members who have completed a total of 6 years in the Selected Reserves or National Guard (member of an active unit, attended required weekend drills and 2-week active duty for training) and received an honorable discharge; continue to serve in the Selected Reserves. Individuals who completed less than 6 years may be eligible if discharged for a service- connected disability. In addition, reservists and National Guard members who were activated on or after August 2, 1990, served at least 90 days and were discharged honorably are eligible. Eligibility for Selected Reservists is due to expire on September 30, 2009.

    Can I build a home with a VA Home Loan?

    Yes. But there are several clauses that may make this difficult to accomplish. Many veterans use their VA Home Loan Certificate of Eligibility to negotiate in good faith a private home construction loan and then refinance the completed home using VA Home Loans.

    Can you take out a VA loan for a second home or vacation cabin?

    The law requires that you certify that you intend to occupy the property as your home. But it specifically provides that occupancy by the veteran’s spouse satisfies the personal occupancy requirement. However, there are no provisions for other family members. VA Home Loans are available for a variety of purposes including building, altering, or repairing a home; refinancing an existing home loan; buying a manufactured home with or without a lot; buying and improving a manufactured home lot; and installing a solar heating or cooling system or other weatherization improvements. You are also allowed to buy income property consisting of up to four units, provided you occupy one of the units.

    Can a veteran obtain a VA loan for the purchase of property in a foreign country?

    No. The property must be located in the United States, its territories, or possessions. The latter consist of Puerto Rico, Guam, Virgin Islands, American Samoa and Northern Mariana Islands.

    What is a VA-guaranteed manufactured home loan?

    A private lender makes a VA-guaranteed manufactured home loan. The VA will protect the lender against loss if the veteran or a later owner fails to repay the loan. The amount VA will guarantee is 40 percent of the loan amount or the veteran’s available entitlement, up to a maximum amount of $20,000. The guaranty amount is not the same as the amount a veteran can borrow.

    If a borrower has used a VA loan in the past, can that person be eligible again?

    Veterans who had a VA loan before may still have “remaining entitlement” to use for another VA loan. The current amount of entitlement available to each eligible veteran is $36,000. Veterans can have previously-used entitlement “restored” to purchase another home with a VA loan if: the property purchased with the prior VA loan has been sold and the loan paid in full, or if a qualified veteran buyer agrees to assume the VA loan and substitute his or her entitlement for the same amount of entitlement originally used by the veteran seller. The entitlement may also be restored one time only if the veteran has repaid the prior VA loan in full, but has not disposed of the property purchased with the prior VA loan.

    I am a Veteran who purchased a home with my spouse utilizing my VA eligibility. I am now divorced and my spouse was awarded the home. How do I get my eligibility back?

    When the property is awarded to the Veteran’s spouse as a result of the divorce, entitlement cannot be restored unless the spouse refinances the property and / or pays off the VA loan in full or the ex-spouse is a veteran who substitutes their entitlement.

    To check out my profile, references and the references of the other agents, just click on my picture to go to my profiles and read what our clients say about us. Pick the broker that you think is right for you. Of course I hope it’s me, but if not then best wishes!

    Search on MLS here:http://luxurylivingorlando.idxbroker.com/idx/search/advanced

    Highest and best regards.

    Vincent Paige |REALTOR® | RE/MAX Showcase
    Certified Broker Price Opinion Registered Agent (BPOR)
    Florida Military Specialist (FMS)
    8934 Conroy Windermere Road | Orlando, FL 32835
    Direct: 407.256.8190 | Fax: 407.264.8073
    E-mail: vince@thepremiumproperties.com
    Search for homes here: http://luxurylivingorlando.com

    How To Get Multiple Offers On Your Home | Vince Paige

    Here are some tips on how sellers can best position themselves to get multiple offers, and how buyers can best position themselves to get the house of their dreams.

    For Sellers:

    Spruce Up. It helps tremendously if the home is move in ready.  Repainting the inside, repainting the front steps, power washing the outside, and cutting the bushes back is definitely worth the effort.

    Take professional Pictures! Do not take the pictures with a camera phone and try to slide by… Do NOT take just a couple… The MLS lets you post over 20, why would you give just 1 picture taking from the county records? Laziness! Get another realtor, your realtor should give 1000% like their hair is on fire! Take enough to spark interest!

    Build up excitement.  Leak the word out in the neighborhood that you might be putting the house on the market. Then list the house on a Monday with no showings until Friday to generate interest to see what the home has to offer.

    Use An Experienced Agent. Do not get emotional when offers come in, it is a business transaction of your most precious object, your home. The goal is to net as much as you can in the shortest amount of time. The longer your home sits on the market the “staleness” sets in and you lose negotiating leverage. Read the contracts thoroughly, and take note of contingencies!

    For Buyers:

    Put down a big deposit.  The deposit, or earnest money, can speak volumes. The more earnest money you put down, the more serious you appear to the seller.

    Limit contingencies. If a buyer demands too many contingencies, that can decrease the appeal of the offer.

    If there’s no financing, buyers can waive the right to an appraisal (typically a house has to appraise at or above the purchase price in the contract). I have even seen buyers bring a home inspector or contractor with them to a first or second showing to look at structural issues and help the buyer make a fast decision, without a home inspection contingency.

    Pay cash. “The best offer for a seller is cash and a quick closing.”

     

    Elevate your expectations,

    Vincent Paige |REALTOR® | RE/MAX Showcase
    Certified Broker Price Opinion Registered Agent (BPOR)
    8934 Conroy Windermere Road | Orlando, FL 32835
    Direct: 407.256.8190 | Fax: 407.264.8073
    E-mail: vince@thepremiumproperties.com
    Website: http://www.ThePremiumProperties.com

    What happens at Closing? | What to expext at Closing?

    [kkstarratings]Home closing

     

    You’ve negotiated a successful offer, resolved all the inspections items, and have received your Clear To Close.  You are so close to ownership that you can feel the new keys in your hand.  The only thing standing between you and moving into your new home is the closing table.
    The following is Frequently Asked Questions about What Happens at a Closing in Florida…

    WHAT IS CLOSING?

    Closing (also called settlement) is the legal transfer of property ownership. Usually, but not always, possession is transferred at closing.

    WHO ATTENDS CLOSINGS?

    Face-to-face closings are common in most states, although Florida does not require them. Your Realtor can provide details for your situation. Since Florida has many Foreign Buyers and Sellers, you have the option of doing a “Mail Away”.
    The participants usually include:• You, the buyer.• The seller.• The real estate agents representing the buyer(s)and seller(s).• The closing agent, the title insurance representative, and the escrow agent. Often one person fulfills all three roles, coordinating and recording the exchange of the documents and money, disbursing funds, and handling various closing details.

    WHERE IS CLOSING HELD?

    Closings are usually held at a title company’s office (in Florida, it’s typical for the seller to choose the title company since they pay for the title insurance). Their job is to confirm the current legal owner of the property, reveal any mortgages, liens, judgments or unpaid taxes on the property, and identify any restrictions that may affect the sale of the property.Any problems need to be corrected before a buyer can receive “clear title.”

    WHAT DO I NEED TO BRING?

    Your Realtor can advise you on what you’ll need to bring to closing, but typically buyers must provide:• Payment of closing costs• Proof of insurance• Photo ID

    WHAT HAPPENS AT CLOSING?
    You’ll sign many documents. Rely on your Realtor to review these documents and answer any questions you may have. Frequently-used documents include:

    • Closing statement (HUD-1) – details all funds changing hands between the buyer and seller
    • Truth in Lending statement – a final summary of the terms of your loan
    • Mortgage note – a legal obligation to repay the lender according to stated terms
    • Deed of trust – the legal transfer of ownership; gives the lender a claim against your home if you fail to meet the terms of the mortgage note
    • Affidavits – any binding statements by the buyer or seller
    • Riders – any contract amendments that impact your rights
    • Any additional documents required in your state.

    Once all documents are signed and all monies have been paid and dispersed, possession is transferred and you receive the keys to your new home. Be sure to keep your closing documents in a safe place for future reference. Some of the expenses associated with your home purchase are tax-deductible.

     

    Live well,

     

    Vincent Paige |REALTOR® | RE/MAX Showcase
    Certified Broker Price Opinion Registered Agent (BPOR)
    Florida Military Specialist (FMS)
    8934 Conroy Windermere Road | Orlando, FL 32835
    Direct: 407.256.8190 | Fax: 407.264.8073

    E-mail: vince@thepremiumproperties.com

    Live MLS!  www.ThePremiumProperties.com or call Vince Paige the Dr. Phillips Realtor.

    Orlando Homes For Sale | Orlando Vacation Homes For Sale | Vacant land in Orlando for sale | Homes for sale in Bay Hill | Condos for sale in Bay Hill | Homes for sale in Bella Collina  | Lots for sale in Bella CollinaHomes for sale in Emerson Pointe  | Homes for sale in Phillips Landing  |  Homes for sale in Vizcaya| Condos for sale in Vizcaya | Condos for sale in Downtown Orlando | Homes for sale in Isle worth  | Homes for sale in Keene’s Pointe | Dr. Phillips Realtor |Homes for sale in Lake Butler Sound  |  Lakefront Homes for sale in Windermere | Luxury homes for sale in Windermere | Luxury homes for sale in Orlando | Luxury Homes For Sale in Winter Garden  | Luxury Homes For Sale in Winter Garden  |Orlando Real Estate |Dr. Phillips Realtor |Bella Collina Realtor |Isleworth Realtor |Bay Hill Realtor |Winter Garden Realtor |Orlando Real Estate Blog

    Why do i need a Pre-Approval ?| Orlando Realtor Vince Paige RE/MAX Showcase

     

    man1

    There are two ways of estimating your borrowing power: Bottom-line-qualification and On-line-approval. A “Bottom-line-qualified” and “pre-approved” are not the same thing. There is a difference. Looking at a mortgage calculator on line and determining how much a mortgage payment will be, depending on the down payment and price of the home, does not count as a pre-approval.

    If you are in the early stages of the home-buying process, getting pre-qualified by a lender gives you a good idea of what you can borrow. You simply provide income, debt, and down payment figures. The lender will then provide you with an estimate of how much house you can afford. This is often done quickly, over the phone, and you have no obligation to use that lender to get a mortgage. Being pre-qualified simply means you have looked over the numbers and have determined you can afford a certain mortgage payment. A bank may have even done this for you but to be pre-approved means the bank will actually loan you that amount of money to buy a home.

    Pre-approval requires a more in-depth look into your finances to determine exactly how and why you can afford a certain home.

    Lenders will sit down with you and go over all your income, debt, liabilities and assets to determine a monthly payment you can comfortably afford. You usually don’t want more than 25% going toward a housing payment. The bank will factor in all your current debts and decide if you can afford to pay back the loan based on all your other responsibilities. Lenders have stricter requirements now and require proof of your income and funds in the bank. Credit scores also make a big difference in the interest rate and fees you will pay for a loan.

    The bank will provide letter that indicates the amount that they are willing to provide as a loan. Unless you intend to purchase a new home with cash, you will need to obtain a mortgage pre-approval letter because most sellers today will not even entertain the idea of selling their home to you without a pre-approval letter provided to them first. It would be a waste of the seller’s time and energy to try to sell you their home if you can’t qualify for the mortgage.

    Would you like it if you were trying to sell your home and  you took your house off the market and placed it in a pending status only to waste your time will someone who can’t qualify for a loan?

     Bottomline

    You wouldn’t want to find your dream home only to discover half way through the process that you can’t remotely afford it. It will save everyone time, hassle, and of course heartache.

    If you are looking to get pre-approved for a mortgage loan, then there are several items that you will need to provide to your mortgage professional or mortgage broker. The first step in the pre-approval process is to find a mortgage professional or mortgage broker that you feel comfortable working with. The more information that you provide upfront for your mortgage broker, the better off you will be in the long run and the less chances you have for any problems or delays in closing. To obtain a pre-approval letter, your lender will ask you to provide them with a number of documents that will create a “snapshot” of your current financial health and your ability to borrow. For each adult who will be on the loan application, the lender will require:

    30 days worth of pay stubs

    60 days worth of bank statements for every bank account

    • W-2’s for the last 2 years
    • Tax Returns – ALL pages for the last 2 years
    • Photo ID’s
    • Name, address, telephone and fax of your employer(s) for the past 2 years
    • Name, address, telephone and fax of your landlord(s) for the past 2 years.

      **If you are self-employed, you will need tax returns from the last two years

    A current mortgage-specific Credit Report will be needed for a pre-approval to be issued, and must be pulled by the issuer in many states. Generally, if you’ve been pre-approved for a credit-based mortgage without a credit check by the issuer of the letter, that pre-approval letter isn’t worth the paper it’s printed on.

    With this information and your permission, they will run your credit, verify your employment & your earnest money deposit, and create a file that is ready to be submitted to the underwriter once you have found your home. Your lender will then be able to provide you with a mortgage pre-approval letter that you can give to buyer’s agent.

    Your income level will help the mortgage broker determine your DTI (debt to income ratio) and give you an accurate purchase price for a new home.  There are a variety of factors that will greatly affect your interest rate.  Lower credit ratings and scores will equal higher interest rates which will mean a higher mortgage payment.  The amount of your down payment will influence your interest rate as well.  The type of loan you are going to get will affect your interest rate and down payment as well as other fees charged in connection with your loan. Pre-approval is usual quick and relatively painless if you have a 620 or better . Usually you can get pre-approved within 24 hours with the necessary income verification and supporting paperwork on hand. Online sites can pre-approve you immediately, but you’ll have to provide the verification to a lender eventually.  You are under no obligation to use that lender for the loan (though most buyers will).

    Once the borrower is pre-approved, they can begin shopping for homes that fall within the amount of the pre-approval offer. A pre-approval is subject to the borrower’s continued good credit and usually remains valid for 60 or 90 days, after which the borrower must reapply in order to make sure the loan offer is still good.
    This information also gives us the confidence to negotiate a good price for the home.  The seller will be confident that they are entering into a contract that is strong and the chance that the sale will go through will be high.  Sellers really want to sell their homes and there is nothing more frustrating for them then to go to the effort of showing their home to someone who isn’t serious about buying

     

    Highest and best regards,

     Vincent Warren Paige, Jr.
    REALTOR® | RE/MAX Showcase
    Certified Broker Price Opinion Registered Agent (BPOR)
    8934 Conroy Windermere Road  |  Orlando, FL  32835
    Direct: 407.256.8190 |  Fax: 407.264.8073
    E-mail:vince@thepremiumproperties.com

    A current mortgage-specific Credit Report will be needed for a pre-approval to be issued, and must be pulled by the issuer in many states. Generally, if you’ve been pre-approved for a credit-based mortgage without a credit check by the issuer of the letter, that pre-approval letter isn’t worth the paper it’s printed on.

    With this information and your permission, they will run your credit, verify your employment & your earnest money deposit, and create a file that is ready to be submitted to the underwriter once you have found your home. Your lender will then be able to provide you with a mortgage pre-approval letter that you can give to buyer’s agent.

    Your income level will help the mortgage broker determine your DTI (debt to income ratio) and give you an accurate purchase price for a new home.  There are a variety of factors that will greatly affect your interest rate.  Lower credit ratings and scores will equal higher interest rates which will mean a higher mortgage payment.  The amount of your down payment will influence your interest rate as well.  The type of loan you are going to get will affect your interest rate and down payment as well as other fees charged in connection with your loan. Pre-approval is usual quick and relatively painless if you have a 620 or better . Usually you can get pre-approved within 24 hours with the necessary income verification and supporting paperwork on hand. Online sites can pre-approve you immediately, but you’ll have to provide the verification to a lender eventually.  You are under no obligation to use that lender for the loan (though most buyers will).

    Once the borrower is pre-approved, they can begin shopping for homes that fall within the amount of the pre-approval offer. A pre-approval is subject to the borrower’s continued good credit and usually remains valid for 60 or 90 days, after which the borrower must reapply in order to make sure the loan offer is still good.

    This information also gives us the confidence to negotiate a good price for the home.  The seller will be confident that they are entering into a contract that is strong and the chance that the sale will go through will be high.  Sellers really want to sell their homes and there is nothing more frustrating for them then to go to the effort of showing their home to someone who isn’t serious about buying