The Home Buyer's Korner

Information presented should be used for educational purposes only.

August 28th, 2014

Guy looking up in color

GREATER METAIRIE LOUISIANA

The Home Buyer’s Korner

Google+ RE Community

Google+ Mortgage Lender Community

Google+ General Contractor Communities

VA or Conventional Loans

VAVA 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 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 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.

START YOUR PATH TO HOME OWNERSHIP TODAY

Barataria  Bridge City  Estelle  Gretna  Harvey

Jean Lafitte  Jefferson  Lafitte  Marrero  Metairie

Fleur Du Lac Estates  Forest Hill/Old Metairie Estates

Metairie Heights Estates  Metairie Park Estates

Oleg Borta Estates  Pailet Place Estates

Pontchartrain Gardens Estates

Terrytown  Timberlane  Westwego   Woodmere

VISIT OUR JEFFERSON PARISH “HOMES FOR SALE” BOARDS

Livingston Homes for Sale

FIND HOMES THROUGHOUT JEFFERSON PARISH

HUD $100 DOWN PAYMENT HOMES IN JEFFERSON PARISH

USDA RURAL DEVELOPMENT HOMES IN JEFFERSON PARISH

FIND FORECLOSURES IN METAIRIE, JEFFERSON PARISH

FIND MORE FORECLOSURES IN METAIRIE, JEFFERSON PARISH

LOUISIANA HOME OWNERSHIP TOOLS

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”.

Find Homes in Metairie Neighborhoods

FNMA HomeStyle FNMA My Community Mortgage FHA One-Time Close Construction Portfolio or VA home loan Homes for Sale REO Short Sales 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 General Contractors Home Improvement Experts Kitchen & Bathroom Renovations Real Estate Brokers & Agents Mortgage Lenders Federal Credit Unions Community Bankers Metairie Airline North Estates Airline Park EstatesAirline Park North Estates Athania Parkway Estates Belmont Park & Place Estates Betz Place Estates Beverly Gardens Estates Beverly Hills Estates Beverly Knoll Estates Beverly Knoll Additions Estates Bissonet Estates Bissonet Plaza Estates Bode Park Estates Bonnabel Place Estates Bridgedale Estates Brockenbraugh Court Estates Bucktown Estates Bunche Village Estates Cambridge Court Estates Canal Street Estates Chateau Park Estates Cherokee Park #4 Estates Cleary Estates Cleary Subdivision 1456 Country Club Estates Country Club Homes Estates Courtland Park Estates Danny Park Estates De Limon Place Estates Delimon Estates Delimon Place Estates Devonshire Estates East St Mary Estates Eastbank Subdivision Edmo Elms Estates Edselton Park Estates Elmeer Pl & Ext Sq 1 Estates Elmwood Park Estates Elmwood Parkway Estates Fairfield Park Estates Fairlane Estates Fountain Court Condominiums Gilmore Estates Gilmore Addition Estates Green Acres Estates Gruner Estates Harlem Estates Harlem Parkway Estates Harlem Place Subdivision Harlem Subdivision Harvard East Pont Gates Estates Harvard Estates Hessmer Farms Estates Holyland On The Lake Estates Jefferson Drive Estates Jefferson Drive Extension Jefferson Lakeshore Estates Labarre Business Park Estates Labarre Division Estates Lake Drive Estates Lake Villa Estates Lake Vista Square Estates Lake Whitney East Estates Lake Whitney West Estates Lakeshore Estates Lindwood Manor Estates Ma Green Estates Madison Park Estates Magnolia Plaza Estates Maned Downs Estates Manor Downs Estates Manson Estates Manson Condos Estates Met Club Gardens Estates Met Towers Condominiums Metairie Club Estate Metairie Club Garden Estates Metairie Club Gardens Estates Metairie Heights Estates Metairie Lawn Estates Metairie Ridge-Nurse Estates Metairie Terrace Estates Metairie Towers Estates Metairieville Estates Metroview Condominiums Morningside Park Estates Neyrey Park Estates Neyrey Park Extension North Airline Park Estates North Bridgedale Estates Nouveau Lane Estates Oaklawn Estates Old Metairie Estates Palm Villas Estates Palm Vista Estates Ponchartrain Gardens Estates Ponchartrain Shores Estates Pont Gardens Estates Ponch Gardens Estates Pontchartrain Gardens Estates Pontchartrain Place Estates Pontchartrain Shores Estates Ponte Vista Estates Ridgeway Terrace Estates Rosedale Park Estates Savannah Ridge Estates Severn Place Estates Shadow Lane Estates Shamrock Park Estates Shrewsbury Estates Shrewsdale Estates Suburban Villas Estates Taft Park Estates Thompson Tract Estates Tree Tops Estates Trudeau Park Estates Waverly Place Estates Westgate Estates Whitney Heights Estates Whitney Place Condominiums Willowdale Estates Willowdale Estates Wilshire Heights Estates Woodland Acres Estates Zander Tract Estates Barataria Baltazaar Point Estates Barataria Isles Estates Bayou Barabay Estates Bayou Harbor Estates District Of Baratari Estates Jenic Isles Estates Bridge City Estelle Gretna Baywood Estates Belle Meade Estates Belle Meade Extension Bellemeade Estates Bellemeade Estates Bellemeade North Estates Bellemeade South Estates Bellevue Estates Bellevue Gardens Estates Bellmeade Estates Brooklyn #2 Estates Cypress Park Estates Elm Park Estates Garden Park Estates Garden Park Estates Gardner Park Estates Gretna Estates Gretna Garden Estates Gretna Gardens Estates Gretna Green Estates Hamilton Oaks Estates Jefferson Place Estates Mcdonoghville Estates Mcdonough Estates Mcdonoughville Estates Mcdoughville Estates Mcdouhville Estates Meadowbrook Estates Mechanickam Estates Mechanickham Estates Meckanicham Estates New Mechanickham Estates Oakdale Estates Oakdale Subdivision Old Gretna Estates Park Place Subdivsion Parkplace Phase 3 Estates Peters Annex Place De Concorde Estates Promenade Condominiums Rose Park Estates Rose Park Addition Rose Park Addition 2 Shadow Lake Estates Shadowlake Estates Slatlery Estates Slatterville Estates Southwood West Estates Stonebridge Estates Suburban Park Estates Terrytown Estates The Commons Estates Timberlane Estates Timberlane Estates Village Of Gretna Estates Westlawn Estates Willowbrook Estates Harvey Barkley Estates David Park Estates Espirt Estates Esprit & Stonebridge Estates Floral Court Estates Fos Place Estates Gardere Estates Gardere Addition Estates Gardere Plantation Estates Hampton Court Estates Hampton Stall Estates Harvey Canal Estates Homedale Estates Jacqueline Estates Jacqueline Court Estates Lake Timberland Estates Lake Timberlane Estate Magnolia Trace Estates Maplewood Estates Marrero Division Estates Oakmere Business & Office Estates Park Place Estates Residence At Park Avenue Estates South New Orleans Estates Saulet Estates Saulet Plaza Estates Scottsdale Estates South New Orleans Estates Southern Oaks Estates Spanish Oaks Estates Spanish Oaks Phase 2 Estates  Stonebridge Estates Stonebridge Espirit Estates The Residence Estates Timber Oaks Estates Timberidge Estates Timberlane Village Estates Village Green West Side Terrace Estates Willow Pointe Estates Woodland West Estates Woodmere Estates Terrytown Concorde Estates Cypress Park Estates Cypress Park Townhouse Northbrook Estates Terrytown Estates Westwego Beechgove Estates Claiborne Gardens Estates Harbor Estates Kennedy Heights Estates Nine Mile Point Estates Normandy Park Estates Segnette Estates The Thicket Estates West Delta Estates Westwego Heights Estates White House Estates White House Extension

Join us at Real Estate Social

Comments are closed.