Why Morales Group + Caliber is Better for Veterans
June 08, 2016
Some VA borrowers prefer to meet with a Loan Consultant and discuss their options in detail. Some prefer to manage their home financing online as much as possible.
Morales Group (a division of Caliber Home Loans) is more than ready to serve both types of clients – here’s why:
- Caliber is a national lender, registered/approved by the Veterans Administration
- Mortgage lending is our only business
- We have the financial support and backing of a national private equity firm
- Our underwriters and process all VA loans in-house with our proprietary, state-of-the-art originations software
Military veterans and those still in active service may qualify for home financing insured by the U.S. Department of Veterans Affairs (VA). You may be able to buy a home with no money down!
- Veterans and those in active service may qualify for 100% financing – no down payment required*.
- Seller contributions are allowed. These help reduce your closing costs.
- High-balance VA loan products are also available
Introduction to VA loans
Like FHA loans, VA loans are guaranteed by the federal government. This enables mortgage lenders to offer financing with no money down.
- Veterans may qualify for 100% financing with a minimum 580 FICO score
- If a property is in a high-cost area, up to $1 million may be available
- Seller financing concessions and contributions are allowed
- No monthly mortgage insurance or prepayment penalties are charged
- Temporary buydowns are allowed for fixed-rate loans
Who’s eligible for a VA loan?
Eligible borrowers may include the following:
- Military veterans who served on active duty after September 15, 1940. Must have served in Active Duty for:
- 90 days during war time OR 181 continuous days in peace time
- A greater length of service is required for veterans who:
- enlisted (and service began) after September 7, 1980, or
- entered service as an officer after October 16, 1981.
- These veterans must have completed either:
- 24 continuous months or more of active duty OR
- a full period of Active Duty, but not less than 90 days during war time or 181 continuous days in peace time
The table below provides a quick reference to some additional types of eligible veterans. This table is NOT exhaustive. A veteran's eligibility for home loan benefits may only be determined by VA.
|Other Eligible Persons
||6 years in Selected Reserves.
|Unmarried Surviving Spouses
||Veteran must have died on active duty or from a service-connected disability. The surviving spouse of a veteran who dies on active duty or from service-connected causes, who remarries on or after age 57 and on or after December 16, 2003, may also be eligible.
||The spouse of an active duty member who is listed as MIA or a POW for at least 90 days. Eligibility under the MIA/POW provision is limited to one time only.
Who can benefit from VA financing?
Many prospective VA borrowers have recently completed several years of military service, and are shopping for their first home.
- These clients may have a limited credit history, due to frequent or international deployments.
- They prefer to finance a home with little or no down payment since many of their benefits are supplied, not paid in cash. For example, the basic pay for an US Army Staff Sergeant begins at $28,569.60 during his or her first two years of service, rising to $35,578.80 after six years*.
- Many VA borrowers need to limit their closing costs for the same reasons.
* These salaries do not include bonuses, allowances and other benefits. Source: www.goarmy.com.
Caliber’s VA Loan Products
- Eligible products up to conforming loan limit (1-4 unit properties):
- 30-year fixed-rate
- 5/1 Treasury ARM
- Eligible products for High Balance loans:
- 30-year fixed-rate § 5/1 Treasury ARM
- 100% financing is available for both fixedrate loans and ARMs
- Maximum loan amounts may exceed the VA County Loan Limit as long as the borrower meets entitlement requirements. Loans up to $1 million may be available.
VA Funding Fees
Unlike FHA loans, VA borrowers do not have to pay mortgage insurance. Instead, a VA Funding Fee (VAFF) is charged. The amount of this fee is based on:
- Veteran’s service type (funding fees differ for reservists and National Guard)
- Loan transaction type (purchase or refinance)
- Veteran’s prior use of VA entitlement
The funding fee may be financed, paid in cash at closing, or both.
Together, we can help our military buy the home they deserve. Contact me to discuss your options.