VA Mortgage

Maryland VA Mortgage

Maryland VA Mortgage - Learning Center.

VA purchase mortgages or refinance mortgages usually allows for 100% of the home’s value to be financed. In addition, when refinancing a VA home loan you may be able to 'cash-out' up-to 100% of the home's value. Va home loans are insured by the Veterans Administration and usually loan amounts insured by the VA are 4 times the eligibility. Although the VA does not set a maximum sales price for a home loan the regular loan limits are set off of the Federal Housing Finance Agency's limits. A home must meet a VA appraisal guidelines and the veteran must also credit and income qualify.

Understanding a Maryland VA Home Loan.

When you want to utilize your VA eligibility to purchase a home there a certain steps you should follow.

Understanding your income when using a VA home loan:
Borrowers should have an established income for two years. If job change has occurred recently then the current employment information and the previous employment information should be provided. It is usually best if the new employment is in a similar profession as the previous employment. Also there should be little lag time between both employments. Two months worth of pay stubs should be saved prior to applying for the loan. The VA borrower should also have the previous two year's of W2's. If self employed then 1099 and a Profit and Loss statement from an accountant is recommend to help prove income.

Understanding your reserves when using a VA home loan:
It is standard to hav a minimum of two months of reserves. Larger amounts of reserves will assist in the approval process. If required, a standard reserve is a minimum of two months of the purposed PITI (Principle-Interest-Taxes-Insurance) and any HOA or Condo fees. Meaning, this should be accessible cash and it should be ‘seasoned’ in some form. Seasoning means it should not be cash, it should have been in checking, savings or other traceable accounts like 401k and money markets.

Understanding your credit when using a VA home loan:
 Regularly, two years of credit history is recommended with 3 open and active credit lines in good standing. Credit scoring is used in determining credit approval.Although there is no minimum score set is the automated underwriting system accepts the loan a score of 620 or better would be recommended and scores over 720 are considered excellent.

Understanding the property requirement when using a VA home loan:

The property must be appraised by a VA approved appraiser and meet VA requirements. The loan limits vary dependent on the property locations. If a home appraises higher than the sale's price some closing cost may be able to be rolled into the loan.

Understanding a Maryland VA streamline refinance.

What is a Va streamline refinance? If you currently have a home with a Va loan you may be able to utilize a VA streamline refinance to reduce the interest rate or change a loan's term. The process eliminates many of the regular requirements of a full VA refinance.

VA streamline refinance Mortgage - The Veteran’s Administration offers a reduction of rate loan that is simpler than a full refinance. This is the VA streamline refinance mortgage. This loan offers a dramatically reduced cost and paper work requirement. If you are a current VA borrower and only want to adjust your rate or term a VA streamline refinance mortgage may be a great option.
You may not have to present income, assets or credit, except mortgage payment history, when using a VA streamline loan.

Common documents needed when utilizing a Maryland VA Mortgage loan.

VA Certificate of Eligibility - Need yours? Visit the VA COE online.
Original pay stubs for the previous month - but you should save at least the last 3 months.
Copies of your W2 for the last 2 years - be sure you have them for all borrowers on the loan.
For refinances - Copy of homeowners insurance - if you use a specific agent you should have their contact information available for the lender.
Copies of asset information - such as proof of money for closing costs  (if needed), 3 months worth of statements from your savings & checking accounts and investment records for mutual funds, stocks, bonds or other liquid investments.

Here are some simple steps to follow for first time Maryland home buyers:

  1. Gather the necessary documents (listed above  ‘Common Documents’)
  2. Search out the Maryland VA loan limits in your area.
  3. Now you are ready to get your VA buyer advice direct from a loan officer. Request a Maryland VA home loan purchase rate quote or a Maryland VA refinance quote.

Maryland 2017 VA Home loan limit broken down by Maryland Counties and Cities.

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