Tag Archives: VA
Veterans Can Benefit by Lowering Current VA Mortgage Rates

describe the imageDo you currently have a VA Loan?  If so, you may  find it beneficial to explore getting a VA Interest Rate Reduction Refinance Loan (IRRRL), commonly referred to by lenders as VA Streamline Refinance. Many Veterans here in Delaware, Maryland and Pennsylvania are seeing the benefits from this program.

The VA Interest Rate Reduction Refinance Loan (IRRRL) lowers your current interest rate by refinancing your existing VA home loan. By obtaining a lower interest rate, your monthly mortgage payment should decrease. You can also refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage.

VA Streamline (IRRRL) Facts and Answers

  • If I currently have a VA Loan, do I need a property appraisal?
    Answer:  No appraisal or credit underwriting package is required when applying for an VA Streamline, IRRRL.

  • Do I need to put out any out of pocket to get my VA loan refinanced and my interest rate reduced?
    Answer:  No, in most cases you need  “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
  • What if I currently have a VA ARM (adjustable rate mortgage) can I still to a VA Streamline Refinance? 
    Answer:
      Yes, you can go from an existing VA ARM loan to a fixed rate loan.
  • I am a Veteran, how do I proceed?
    Answer:  Simply give us or lender of your choice a call to get started.
  • Can I receive any cash if I do a VA Streamline Refinance?
    Answer:  No, you may NOT receive any cash from the loan proceeds.
  • How do I know if I qualify?
    Answer:  If you have an existing VA loan and currently occupy your home, you most likely qualify.

How do I get the application process started?

A new Certificate of Eligibility (COE) is not required. You may take your Certificate of Eligibility to show the prior use of your entitlement or you can use our e-mail confirmation procedure in lieu of a certificate of eligibility.

Are there loan limits to get my VA mortgage rate reduced?

VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money lenders will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a down payment. These loan limits vary by county, since the value of a house depends in part on its location. See Loan Limits for more information about the limits in your county.

When is the best time to get this done?

Your timing could not be better.  Rates are now at their lowest point in years and if you are a veteran and currently have a VA loan higher than 4.0%, you may benefit from an interest rate reduction loan.

How to get pre approved for home loan?

purchasing your new home is to get an idea of how much house you can afford to purchase

We make it easy!  Pre-Approval is an easy process and assesses your income, assets, current debt structure and credit worthiness

Taking the time to get pre-approved is your best bet when shopping to purchase your home

  Getting a pre-approval shows your Realtor or Selling Agent that you are a serious and qualified buyer

  This process also saves you time, by making sure you are looking for homes you can reasonably afford to purchase

  Our friendly family staff is here to make sure your buying experience is pleasant and seamless as possible

  Your next step –

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com/preapproval-form/”> on line Pre-Approval Form,  you will hear from one of our mortgage consultants within 24-hours or less to discuss your submission and your next step to home ownership

After our free over the phone consultation, we will move on to the next step by issuing your pre-approval letter

Along with getting pre-approved, there will be a choice of the programs that will meet your needs and qualifications

  Below is a list of the programs we offer for you to choose from:

Our team here at Delaware Financial Capital Corp

will assist you once you get pre-approved to determine which program is best for you


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How to Buy a Fixer Upper with a FHA 203K Loan

FHA’s 203(k) program lets you buy the house you want now and then provides the money you need to make repairs

With 203(k) financing you can buy an older home and fix it up, or you can purchase a short sale or foreclosure in need of repair with the 203(k)

You can also buy a property which is in good shape but would be better with modernization and more energy efficiency

With the typical mortgage you apply for financing, get an appraisal and go to closing

The mortgage is used to pay for the acquisition of the property

However, if you want to make additional improvements you then need cash or an additional loan

The 203(k) allows the borrower to acquire the property and fund improvements after settlement

It can save time and money

There are three steps to obtain a 203(k) loan:

1) Find a loan

The borrower locates an FHA lender who offers 203(k) financing

Many lenders do not provide such financing because the program requires more follow-up than a typical mortgage

Once a property is located the lender will want to know how the funds will be used

At this point the borrower usually obtains help from an “independent consultant,” a 203(k) expert familiar with the program

The cost of the independent consultant can be financed under the 203(k) mortgage

2) Settlement

The money needed to acquire the property is paid out at closing by the lender

With most loans all the money due to the borrower is paid out at closing

However, with 203(k) financing a portion of the loan amount is retained by the lender and set aside for repairs

3) Disburse funds

Money from the loan is disbursed as approved work is undertaken and completed

This means the lender’s involvement with the property continues after closing

 

So how does the 203(k) program really work? Let’s look at some particulars

Down payment

The FHA currently requires at least 3

5% upfront as a down payment plus closing costs

The 203(k) down payment is calculated on the total loan amount, including the money needed for improvements

Refinancing

You can use the 203(k) program to refinance an existing loan for a qualified property and for approved repairs and replacements

Type of propertyGenerally the property must have one to four units, including one which will be owner occupied

The dwelling must be at least one year old

The 203(k) can be used with condos but not with cooperative units

HUD states, “Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place

You can also use the 203(k) program to finance what is known as a “mixed use” property

This means some of the floor area can be used for commercial purposes

However, 203(k) funding can only be used to refurbish the residential portions of the property and not the commercial areas

Type of improvements

HUD says “luxury items and improvements” are not eligible for 203(k) financing

However, a wide range of repairs and improvements are okay including painting, plumbing, electrical work, flooring, room additions, energy conservation and decks

Investors

The 203(k) would seem to be ideal for investors, however under HUD rules the program is only open to owner occupants

 

Sam Collins with Delaware Financial Captial Corp can answer 203(k) questions and explain in detail how the program works

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Are you Ready to Purchase a Home? – How much can you afford?

describe the imageIf you rent the home you live in or thinking about upgrading to a larger home or moving to another area, then the right planning can help you to purchase a home.

To discover your homebuying potential,  you will want to calculate your:

  • Income
  • Savings
  • Monthly Expenses
  • Current Debt

These factors determine how much of a loan you can afford and how buying a home will affect your monthly budget, once you compute all your expenses.

What is your Income?First you need to determine all of your sources of income. You will need money for your down payment and for your closing costs.  The FHA, VA and other mortgage programs may require smaller down payments.  In some cases the closing costs may sometimes be rolled into the mortgage or you can get seller assistance.Here are a few questions to help you to estimate your financial position.•    What is your average monthly income?
•    Do you expect your income to remain level in the near future?
•    If not, do you expect it to increase or decrease?

 

Use the following income categories to estimate your monthly income:

Income Category

Monthly

Borrower’s Salary

$

Co-Borrower’s Salary

$

Taxable Interest

$

Investment Dividends

$

Other Income

$

How much will you need for your Down Payment?Do you have Savings, Investments, Stocks or other Liquid?Add up your savings. Any money saved can help you buy a home. Your savings can be used to pay the down payment and/or closing costs. You know your own saving habits, the more you save the better and the more you put down on your house, the lower will be your monthly payment.

•    What portion of your income are you saving now?
•    Can you afford to put more money into savings?

Use the following savings categories to estimate your monthly savings.

Savings Category

Monthly

Savings Account

$

Checking Account

$

Retirement Fund Contributions

$

Stocks, Mutual Fund Investments

$

Other Savings

$

              
          
Monthly Expenses – Do you know where your money is going?How much are you spending each month? You can expect your monthly expenses to go up when you buy a home. Will you have enough money to pay the mortgage, insurance and property tax in addition to your other expenses?

Use the worksheet below to calculate the money you currently spend each month.

 

Expense Category

Monthly (current)

Utilities

$

Car Expenses

$

Insurance

$

Medical Expenses

$

Clothing

$

Taxes

$

Entertainment/Purchases

$

Child Support

$

                        
How Much Debt do you Have?Review your current debt obligations.  We examine the ratio of your debt to your income when deciding how much money to lend you.  Consider how additional debt from house payments, added to your existing debt, will affect your lifestyle.

Debt Category

Monthly

Credit Card

$

Car Loans

$

School Loans

$

Alimony

$

Child Support

$

Other Personal Debt

$

Wow! There is a lot to consider when buying a home.  Rest assured, if you are on this page right now you are on the right path.  Please feel free to let us know if you have any questions.

Still have questions?   Just give us a call at (302) 266-9500 or simply click the button below to contact Sam.

 

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