VA (Veteran Affairs) Financing:
As you know, our MD/DC/VA metropolitan area is heavily populated with; Active Duty Military, Veterans, and Reservists, all of whom may be eligible for a VA loan. VA is one of the only loan programs that still offers 100% financing (Yes, 0% Downpayment), and doesn't require monthly mortgage insurance. VA financing guidelines are very similar to the FHA loan program which is playing a huge role in our market today, so don't be scared off if you have a buyer that is eligible for VA financing, or if you’re a listing agent that's presented with a VA contract. VA financing is truly an excellent program, offering both the 30 Year Fixed and 5 Year ARM loan programs. Below are a few things you should know about VA loans:
- 0% Downpayment (100% Financing) Allowed with no impact on a buyers interest rate
- No Monthly Mortgage Insurance, which increases purchasing power
- VA Loans ARE ASSUMABLE by other eligible military (just like FHA loans are assumable, which I foresee playing a huge role in our market place in years to come if we experience rising interest rates, which will offer leverage when time comes to sell)
- VA Loans are not credit score driven, and allow for higher qualifying ratios than Conventional loans
- Up to 4% Seller Contribution Allowed
- Gift Funds are allowed to be applied towards closing costs and downpayment
- 5 Year ARM available- Fixed for the first 5 years then follows a 1% Annual Cap and a 5% Lifetime Cap (same as FHA), Perfect for military stationed here for short period of time and doesn't want to throw money away paying rent
- Requires a VA Funding Fee that can be financed into the loan amount, paid in cash at closing, or be paid by seller contributions. Funding Fee depends on downpayment (if any) and subsequent use
Brad Katzen
Prosperity Mortgage
President's Club Member
Licensed Loan Officer
Regional Headquarters
700 King Farm Blvd, Suite 124
Rockville, MD 20850
NMLS# 202934
4733 Bethesda Avenue, Suite 100
Bethesda, MD 20814
Office- 240-497-6154
Cell- 301-943-9316
Fax- 866-359-4269
E-Mail Bradley.A.Katzen@prosperitymortgage.com
Apply On-Line: http://www.TheVZgroup.com
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