The Home Buyer's Korner

Information presented should be used for educational purposes only.

April 1st, 2015

Guy looking up in color

GREATER FRESNO CALIFORNIA

The Home Buyer’s Korner

Google+ RE Community

Google+ Mortgage Lender Community

Google+ General Contractor Communities

VA or Conventional Loans

Google+LendersVA home loan are guaranteed by the federal government through the Department of Veterans Affairs and offers both active duty military and eligible veterans and spouses of a veteran that is deceased from a service-connected event to purchase a home with no money down or 100% financing. Conventional loans, on the other hand, are a bit harder to qualify and usually require up to 20% down payment for a mortgage.

With the new Qualified Mortgage (QM) rules in effect now, lenders are required to make sure that all loans are classified as “safe mortgages”. In other words, qualified mortgages are intended to protect lenders today from a borrower’s lawsuit tomorrow. The idea of a qualified mortgage would simply be following the program’s guidelines from DTI to Employment and everything in between. Given the new Qualified Mortgage regulations many believe that this would make it more difficult to purchase a home.

There are a few things that a Qualified Mortgage may not be able to have:

  1. Balloon Payments
  2. A term that exceeds 30 years
  3. Points and fees greater than 3% of a loan amount (over $100,000)
  4. Negative Amortization
  5. Loans with interest only payments

Above this, the loan must also fall into one of three category types:

  1. Loan qualifies for a purchase or guarantee by the government or a government-sponsored enterprise (GSE).
  2. Borrower’s Debt-to-Income Ratio (DTI) must not exceed 43%.
  3. Kept in-house by a small lender (not relying on Third-Party Company or business to complete the transaction).

The differences between a VA home loan and a Conventional loan are significant. VA home loans are only offered to active-duty military personnel, military veterans and some spouses of a veteran while Conventional loans are offered to all types of borrowers, as long as they meet the qualifications.

1. Conventional mortgages usually require a 5%-20% down payment, while VA mortgages require 0% down payment and 100% financing.

2. VA home loans do not require mortgage insurance, as a matter of fact it is prohibited by the VA that lenders don’t expect mortgage insurance from VA borrowers. Meanwhile, private mortgage insurance (PMI) is required for Conventional loans if the homebuyer is putting down less than 20% on the mortgage.

3. The credit qualifications for a conventional mortgage is usually strictly based on the program’s underwriting standards and specific credit score requirements. The VA loan program may allow a home buyer to have a reasonable amount of credit problems and still consider them eligible for the mortgage.

4. VA loans are assumable, meaning that if the home owner sales the house, then the new owner may be able to take over the current loan without having to obtain a new one for the purchase of that home. Conventional mortgages are not and may accrue prepayment penalties if the home owner decides to sell or refinance their home earlier than expected.

5. VA home loans usually require a minimum credit score of 620 but may vary from lender to lender, while a conventional loan will often set  a minimum credit score of 660 with no bad credit history.

6. VA does not issue loans, nor do they enforce credit score minimums, this is done by the VA lender and is guaranteed by the government in case of default. Conventional loans are not backed by the government or guaranteed and guidelines are often in accordance to strict guidelines by Federal National Mortgage Association.

7. VA loans do not have prepayment penalties while a conventional loan might.

VISIT OUR GREATER FRESNO AREA

HOMES FOR SALE LISTINGS

Livingston Homes for Sale

FIND HOMES THROUGHOUT FRESNO CALIFORNIA

HUD FORECLOSED HOMES IN THE GREATER FRESNO CA AREA

USDA HOMES IN THE GREATER FRESNO CA AREA

FIND FORECLOSURES IN & AROUND FRESNO CA

FIND MORE FORECLOSURES IN & AROUND FRESNO CA

CALIFORNIA HOME OWNERSHIP TOOLS

Your Home Purchasing or Refinancing & Renovation Tools,

Home Improvements, Home Renovations,

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase.

Here are just a few of the home improvements

you might consider with any Home Renovation loan

Repair or replace a roof

Install, replace or repair gutters and downspouts

Replace, repair or upgrade your HVAC system

Repair or replace plumbing

Install, repair or replace electrical systems

Kitchen remodeling (including the purchase and installation of appliances)

Bathroom remodeling, Full interior painting, Total exterior painting

Repair or replace a septic system and/or well

Disability access (wheelchair ramp, elevator, widen doorways)

Build, repair or replace deck, patio or porch

Basement waterproofing and finishing

Abatement/Stabilization of lead-based paint hazards

Replace old windows, Room additions, Finish an attic

Add a second story to your home

Replace a termite damaged sill plate (a water-damaged sill plate also)

Possible landscaping items such as correction of grading & drainage problems,

tree removal, repair a driveway and sidewalks

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Mortgage Loan Officers, Real Estate Agents & General Contractors are ready to assist you

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision-making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen you will

have the option to “Create A Printable PDF of the Presentation”.

START YOUR PATH TO HOME OWNERSHIP TODAY

FNMA HomeStyle FNMA My Community Mortgage FHA One-Time Close Construction Portfolio or VA home loan Homes for Sale FNMA HomePath Properties HUD Homes USDA Homes Condominiums Co-Ops Townhomes Manufactured Homes Modular Homes Mobile Homes Log Homes Second Homes Investment Property 2-4 Family Custom Home Builders Custom Built Homes Leasehold Fee Adoline-Palm Historic District Estates Alluvial and West Bluff Estates Alluvial West Estates Armenian Town Estates Ashlan and Valentine Estates Ashlan & Fowler-Armstrong Estates Audubon Wedge Estates Avaya’s Circle Estates Bella Montagna Estates Belmont-Dennett-Bengston-Parkway Estates Belmont-Divisadero-Blackstone-Fresno Estates Belmont-Fwy180-First-Fwy41 Estates Belmont-Fwy180-Fresno-Diana Estates Belmont-H-Fwy180 Estates Belmont-Olive-Cedar-Ninth Estates Belmont-Olive-Chestnut-Winery Estates Belmont-Olive-Maple-Chestnut Estates Belmont-Tulare-First-Sixth Estates Belmont-Tulare-Maple-Cedar Estates Belmont-Tulare-Maple-Chestnut Estates Belmont-Tulare-Sixth-Cedar Estates Blackstone-Maroa-Shields-Clinton Estates Blackstone-Maroa-Shields-Cortland Estates Bluffs Estates Blythe Bound Estates Brawley Estates Brawley-Stanford-Calimyrna-Kadota Estates Browning Heights Estates Brunswick Avenue Estates Bullard Estates Grantland Estates Bullard Loop Estates Butler-California-Cedar-Maple Estates Butler-California-Maple-Chestnut Estates Butler-California-Orange-East Estates California-Jensen-Willow-Chestnut Estates Carriage of Lennar Estates Cedar-Chestnut-Shields-Dakota Estates Centex Amberpoint Estates Central Valley Estates Central Westside Fresno Estates Champlain Drive Estates Chestnut and Woodrow Estates Chinatown Estates Church-California-Golden State-Fwy 99 Estates Church- Florence- Chestnut & Maple Estates Church-Jensen-Maple-Cedar Estates Clay-Tyler Ave Estates Clinton-Mckinley-Blackstone Estates Clinton-Mckinley-Blackstone-Fresno Estates Clinton-Shields-Fresno-Hwy 41 Estates Clovis Estates Colby Park Estates Cornelia and Ashlan Estates Cornelia-Dante-Bullard Estates Corona Tierra Estates Country Club III Estates Country Mobile Park Estates Craycroft Village Estates Dakota and Brawley Estates Dakota-Palm-Shields-Fruit Estates Dakota-Pontiac-Fresno-Mariposa Estates Dakota-Shields-Fresno-Fwy 41 Estates Dakota-Shields-West-Marks Estates Del Mar Estates Downtown Estates DR Horton Estates East Lexington Estates East Madison Avenue Estates East San Jose Avenue Estates East Side Floradora Estates Eaton Elementary Neighbor Estates El Dorado Park Estates Ellendale Estates Emily Estates East E. Santa Ana Bulletin Estates European Grove-Figarden Estates Fancher Creek Estates Figarden Estates Fig & Brawley Estates Fig Loop Circle Estates Fig Village Estates First-Millbrook-Shields-Michigan Estates Floradora-Olive-Millbrook-Cedar Estates Fordham Estates Forkner Sequoia Estates Francer Creek Estates Freemont Estates Fresno Diamond Estates Fresno East Estates Fresno-First-Mckinley-Weldon Estates Fresno-Nees-Angus-El Paso Estates Fresno Square Estates Fresno Zoo Estates Friant and Copper Estates Garden View Estates Garland Ave Estates Gates Fig Garden Estates GBGB Estates Generation Sunnyside Estates Germantown Estates Gettysburg and Feland Area Estates Gettysburg-Parkway-Shaw-Hayes Estates Golden State-Ashlan-Gettysburg-99 Estates Granville Sunnyside Estates Greater Tower District Estates Helm-Peach-Olive-Pine Estates Herndon-Fresno Estates Historic Huntington Estates Holt Estates Home Lansing Way Park Estates Hoover High Estates Horseshoe Estates Hunter Place Estates Hwy 41 Estates Industrial East Airport Estates Inner Loop Estates Island Waterpark Barstow Estates Jackson Park Place Estates Jensen-Church-Elm-Cherry Estates Jensen-Mason-Cedar-Ninth Estates Katy-Cecelia-Mckinley-Floradora Estates KB Homes Olive Lane Estates La Buena Vida-Allicante Estates Leavenworth Estates Lennar Estates Lennar-Clinton-Cornelia Estates Liddell Estates Logan Park to Bullard Ave Estates Lowell Estates Malaga Estates Maple Estates Maple-Behymer Estates Maplecreek Estates Marks-Escalon Estates Maroa Parks Estates Mayfair Estates Mccaffrey Highway City Estates McKinley and Marks Estates McKinley Ave Estates Mckinley-Olive-Cedar-Maple Estates Mckinley-Olive-Fresno-Blackstone Estates Mckinley-Olive-Millbrook-Fwy 41 Estates Melody Park Estates Meridian Estates Milburn Bluff Estates Millbrook-Eleventh-Floradora-Canal Estates Millbrook-Ninth-Cedar-Fountain-Dakota-Sh Estates Minnewawa Belmont & Tulare Estates Minnewawa-Peach-Huntington-Kings Estates Montelena Estates Mural District Estates N Charles Estates Nees Park Place Estates Nelson Chester  chool Estates New Haven Estates North Avenue Industrial Triangle Estates North Bond Street Estates North Creek Estates North Side Estates Northside Church Estates NorthTower Estates Northwest Bullard Estates Old Fig Garden Estates Old Herndon Township Estates Old Sunnyside Estates Olive & Brawley Estates Olive-Floradora-Hughes-Pleasant Estates Olive-Fwy180-Fresno-Fwy41 Estates Olive-Mckinley-Fresno-Fwy 41  Estates Oxford Commons Estates Palm Lakes Estates Palm/Shaw Estates Palm & Shields Estates Palo Alto Estates Palo Alto Place Estates Park Ridge Estates Parkway-Channing-Durant Estates Peach-Willow Estates Pinedale Herndon Ingram Estates Plaza Homies Estates Polk Estates Ranch Estates River Bluffs Estates Riverpark Estates River’s Edge Estates Riverview Estates Riverview-Riverpark Estates Royal Coach Estates Rustic Oaks Estates Sageberry Estates Saginaw Way-Farrin Estates San Gabriel Ave Estates San Jose & Brawley Estates Selma Layne Park Estates SE of Clovis East Estates Shaw-Maroa Estates Shawstone Estates Shepherd and Willow Estates Shields-Clinton-West-Hughes Estates Sierra Estates Sierra West Herndon Estates Silver Springs Estates Southeast Magnolia Estates South West-West Park Estates St Agnes First & Herndon Estates St. Johns Historic District Estates Stonemark Hones Estates Sun Garden Acres Estates Sunnyside Estates Sunnyside Central Estates Sunnyside East Estates Sunnyside Estates Sunnyside Grove Estates Sunnyside Haven Estates Sunrise Meadows Estates Teilman and Gettysburg Estates Teilman Heights Estates The Bluffs Estates The Circles at Decatur Estates The Dominion Estates The Masters Collection Estates Tower District Estates Tower District Area Estates Trend Big Country Estates Tuscan Bluffs Estates Tyler East-West Estates United Community Estates University Portals Estates Ventura-Butler-First-Chance Estates Veteran’s Blvd East Estates Wathen Mansionettes Estates West-Hughes-Kearny-Canal Estates West of Selma Layne Park Estates Willow-Helm-Olive-Mckinley Estates Willow Perrin Estates Windsor North Vicinity Estates Winery-Willow-Olive-Mckinley Estates Woodrow Culdesacs Estates Woodside Estates Woodside Park Condominium Estates Woodward Estates Woodward Lake Estates Wrenwood Estates Butler Calwa Cecile Cincotta Eshel Goldleaf Hammond Malaga Mattie West Park

Join us at Real Estate Social

Comments are closed.