This page is devoted to the five percent of Americans who have served our country in uniform. As a former solider I know that people very rarely show their appreciation to you for the sacrifices you have made while serving your country. I want to thank you for your service and for keeping the dreams of Americans alive. On this page you will find information concerning VA home loans that will help you buy a home with no money down. That is how I bought my first house and if it hadn't been for that I probably could not have bought it. So take a look around and see if you qualify for the VA loan program. If you have any question please don't hesitate to e-mail me or call me I will  be glad to help in any way I can. Once again that you for your service. craig@craigpetitt.com or 502-664-5919

INTRODUCTION:

In order to assist veterans in obtaining affordable housing, the U.S. government set up the VA home loan program. Under this program, the Veterans Administration guarantees a certain portion of a home loan made by institutional investors to qualified veterans.

The amount of entitlement for a qualified veteran has increased throughout the years. Presently, full entitlement is $60,000 (12-01). Since investors usually require at least 25% coverage on VA loans, the maximum loan available, without a down payment is $240,000, to include the VA funding fee.

HIGHLIGHTS:

PROPERTY - Single to four unit family dwellings, condo's. All VA loans are only for owner-occupied properties. No increase in maximum loan amount, is available for multiple units.

VA FUNDING FEE - The Veterans Administration charges a funding fee that is based upon the total loan amount. Effective 10-1-93, the funding fee charged is based upon loan- to-value (LTV), veteran's status and whether the veteran has used the loan program before. The funding fee may be paid in cash or financed. 

First Time Use:  Previous or Present Active Duty -Basic Funding Fee

1. 2.00% - For loans in excess of 95% LTV.

2. 1.50% - For loans over 90% but less than 95% LTV.

3. 1.25% - For loans less than or equal to 90% LTV.

First Time Use: Basic Funding Fee for Reservists  (Based upon 6 years of Selective Reserve or Nat'l Guard)

1. 2.75% - For loans in excess of 95% LTV.

2. 2.25% - For loans over 90% but less than 95% LTV.

3. 2.00% - For loans less than or equal to 90% LTV.

Funding Fee for Subsequent Use:

1. 3.00% - For loans in excess of 95% LTV.

2. 1.50% - (or 2.25% for Reserves/Nat'l Guard) For loans over 90% but less than 95% LTV

3. 1.25% - (or 2.00% for Reserves/Nat'l Guard) For loans less than or equal to 90% LTV.

Funding Fee for Refinances:

1. 0.50% - For rate reduction refinances.

2. 3.00% - For cash-out refinances of present VA loans.

3. 2.00% - (or 2.75% for Reserves/Nat'l Guard) for refinances of present conventional loans, assuming no previous uses of eligibility.

EXEMPTIONS FROM THE VA FUNDING FEE - The VA funding fee will not be collected if any of the following apply:

1. The Veteran is receiving VA disability compensation (10% or better).

2. The veteran is rated as being eligible for such compensation, even though not collecting it.

3. The borrower is an "un-remarried surviving spouse" who is eligible for such benefits.
    

If you have any questions don't hesitate to call or e-mail me with your questions craig@craigpetitt.com

 

VA Home Loan Eligibility

All veterans are eligible for VA loan guarantee who have been discharged under any condition other than dishonorably, including those discharged under hardship conditions, and those discharged for disability (whether or not it was service-connected). And, if they have served on ACTIVE DUTY during the following periods of time:

90 days of active service for veterans of World War II, the Korean War, The Vietnam conflict, and the Persian Gulf War. (Operation Enduring Freedom and Operation Iraqi Freedom Have not been added to the regulations yet but they will apply.)

A minimum of 181 days of active service during interconflict periods between July 26, 1947 and September 6, 1980.
 
Two full years of service during any peacetime period after September 7, 1980.
 
Six or more years of continuous duty as a reservist in the Army, Navy, Air Force, Marine Corps, Coast Guard or as a member of the Army or Air Force National Guard.

Eligibility may be established for certain other individuals, such as Public Health Service Officers, Cadets/Mid-shipmen at service academies, Officers National Oceanic and Atmospheric Administration, Merchant Seamen from World War II and others.

If a veteran has previously used his/her entitlement, a full reinstatement may be obtained if:

1. The previous VA loan was paid in full and the property has been disposed of, or

2. If another eligible veteran has substituted his/her entitlement on the loan.

GIFTS: 100% of the money required for down payment (if any), closing costs and reserves may come from gifted funds. The giver must be either a relative or an unrelated person who can prove a long term relationship with the veteran. A gift letter is required as well as proof of the ability to give and proof of the receipt of funds.

QUALIFYING: A combined housing expense plus long-term debt ratio of 41% of gross income is recommended. The calculation is the same as on conventional loans except that any child care or lengthy commute expenses are also included as long term debt. Residual income may be utilized if the ratio is higher than 41%. 
 

If you have any questions don't hesitate to call or e-mail Craig your questions craig@craigpetitt.com 

VA Home Loan CLOSING COSTS

ALLOWABLE CLOSING COSTS

1. Discount points (purchase or refinance)

2. Loan origination fee (1% maximum)

3. Appraisal fee

4. Credit report fee

5. Title insurance fees

6. Recording fees

7. Compliance inspections

8. VA funding fee (may be financed)

9. Pre-paid interest

10. Tax and insurance impounds

 VETERAN MAY NOT PAY THE FOLLOWING

1. Escrow fee or sub-escrow fee

2. Administrative fees

3. Document preparation fee

4. Underwriting review fee

5. Processing fee

6. Wire fee

7. Tax service fee

8. Notary fee

9. City transfer taxes or tax stamp fee

10. Pest inspection

NOTES

1. The seller may pay ALL of the veteran's fees including both non-recurring and recurring closing costs

2. All of the borrower's down payment and closing costs may be a gift from a relative.

3. Seller concessions are limited to 4% of appraised value (not including closing costs.)

 If you have any questions don't hesitate to call or e-mail Craig your questions craig@craigpetitt.com

For the most current quotes on current VA home loan rates in Louisville, Kentucky. Call my friend Al Townsend at CTX Mortgage (tell Al that Craig sent you). 

Al Townsend
CTX Mortgage
502-239-1090
al.townsend@ctxmort.com