|
My Mission: To
help current and former Military Personnel purchase the home of
their choice in Minnesota using their VA Mortgage Guarantee benefit.
My credentials:
 | More than 20 years experience as a Loan Officer helping
veterans from all branches of the armed forces finance homes in
Minnesota |
| US Navy veteran |
| I've used my own VA eligibility to purchase homes on two
different occasions |
| I help veterans from eligibility determination through
closing on their home purchase or refinance |
| Summit Mortgage Corporation is an automatic VA Lender with
VA Authorized Underwriters on staff, so we process and approve
your loan at our Plymouth, MN corporate office without the need
to send your file to the Veterans Administration Office for
underwriting review |
| Free no obligation mortgage pre-approval |
| Special closing cost discounts on all VA loans |
| Free consultation help for Realtors with eligibility
determination and preparing purchase agreements |
| Eligibility Certificates don't expire, so call today (763)
390-7250 or (800) 466-3133 ext. 250 for a free, no-obligation
phone consultation to determine if a VA Mortgage will work for
you |
| Most veterans will find that a VA mortgage is the best way
to finance their home, but I also have a complete line of other
financing options available as a back up |
Typical testimonials from my VA
clients:
| “Lou Auger did an outstanding job. Thank you!” |
| “Lou Auger is excellent. Always on time and looks out
for the best interest of his clients. We will continue to
use him as we have in the past!” |
| “Lou did a great job – very pleasant experience” |
| “Lou Auger exceeded my expectations” |
| “Lou was exceptional. We’ll recommend him to anyone!” |
| “Lou and his processor were very helpful and made my
experience enjoyable” |
| “Could not have been better! Thank You!” |
VA Mortgage highlights
| Mortgages up to $359,650.00 |
| NO DOWN PAYMENT |
| NO CLOSING COST option is available |
| VERY LITTLE out of pocket money required (Earnest money can
even be returned at closing) |
| STREAMLINED ELIGIBILITY DETERMINATION for most veterans |
| FAST COMPUTERIZED mortgage approval |
| Perfect credit is not required |
| Programs include: 30 year fixed rate, 15 year fixed rate, 3/1
ARMs |
| There are two ways to determine if a VA loan will work for
you:
1) Study the
VA's
673 page manual
2) Call me at (763) 390-7250 or (800)
466-3133 ext. 250 |
A sample Minnesota purchase
agreement and the most frequently requested
VA guidelines
Following is a partial list of
other areas where unique guidelines apply to VA mortgages:
| Eligibility for National Guard members |
| Special discounts for disabled veterans |
| Obtaining a VA Eligibility Certificate in just a few minutes |
| How to re-use VA Eligibility |
| What if the veteran is putting 20% down |
| A non-spousal co borrower |
|
Purchase agreements require a special VA Addendum |
| Seller payment of closing costs is limited, but can be very helpful |
| The VA does not allow some personal property items to
be included in the transaction |
| Some lenders charge fees that must be paid by the seller on
VA Mortgages (I don't) |
| Special considerations for less than perfect credit |
| Bankruptcy filing in the past two years |
| Installment debts that have less than 10 months
remaining |
| Overtime pay on your current job |
| Using rental income to qualify |
| Dependents age 6 and under |
| Veterans currently on Active Duty |
| Military pay
allowances |
| Veterans who have been discharged from active duty in the previous 12
months |
| VA Adjustable Rate Mortgages |
| Some fees typically charged by Lenders, Realtors and Title
Companies are not allowed on VA loans |
| New construction can be processed the hard way with VA
inspections or an easy way without inspections (I can do them
either way you choose, but I think you will prefer the easy way) |
| Private water supply systems (wells) have special
requirements |
| Private septic systems have special requirements |
(THESE AREAS ARE NOT A PROBLEM IF ADDRESSED UPFRONT
BY AN EXPERIENCED VA MORTGAGE SPECIALIST LIKE LOU AUGER.)
VA Down payment requirements
VA mortgages typically do not require a down payment as long as the
veteran has sufficient VA mortgage eligibility, but a down payment
is sometimes used to increase the size of the mortgage for which the
veteran is eligible. Also see
Maximum Mortgage.
Back to most frequently requested guidelines index
VA Eligibility
If you call me, I can often
obtain your VA Eligibility Certificate on the internet in just a few
minutes.
VA Exhibit 2-A: Quick Reference Table for VA Eligibility -
a. Quick Reference Table
|
The table below provides a quick
reference to some the most commonly eligible veterans.
This table is NOT exhaustive. A Veteran’s eligibility for
home loan benefits may only be determined by VA. |
|
|
|
|
|
WW II |
9/16/40—7/25/47 |
90 days |
|
Post WW II |
7/26/47—6/26/50 |
181 days |
|
Korean |
6/27/50—1/31/55 |
90 days |
|
Post Korean |
2/1/55—8/4/64 |
181 days |
|
Vietnam |
8/5/64—5/7/75
Note: The Vietnam Era
began 2/28/61 for those individuals who served in the
Republic of Vietnam. |
90 days |
|
Post Vietnam |
5/8/75—9/7/80
5/8/75—10/16/81
9/8/80—8/1/90
10/17/81—8/1/90 |
enlisted—181 days
officers—181 days
enlisted—2 years**
officers—2 years** |
|
Persian Gulf |
8/2/90—present |
2 years
**Note: The veteran must
have served 2 years or the full period which called or
ordered to active duty (at least 90 days during wartime and
181 during peacetime). |
|
|
|
|
Active Duty Member
Note: Certificate
valid only while veteran remains on active duty. |
90 days (181 during peacetime) |
|
Reserves/Guard |
6 years in Selected Reserves. |
|
Unmarried Surviving Spouses |
No time requirement. Veteran must
have died on active duty or from a service-connected
disability. |
|
POW/MIA Spouses |
Veteran must have been POW or MIA 90
days. |
Back to most frequently requested guidelines index
Funding Fee
|
VA FUNDING FEE TABLE
|
|
First time use
Active Duty Veteran |
First time use
Reservist |
Subsequent use |
|
0% Down |
2.15% |
2.40% |
3.30% All Veterans |
|
5% Down |
1.50% |
1.75% |
1.50% Active Duty
1.75% Reservist |
|
10%Down |
1.25% |
1.50% |
1.25% Active Duty
1.50% Reservist |
|
Cash Out Refinance |
2.20% |
2.40% |
3.30% |
|
Rate reduction refinance |
.50% |
.50% |
.50% |
The funding fee may be included in the mortgage or paid in cash,
but it is typically include it in the mortgage.
If the Veteran receives any type of VA Disability payments, they
will most likely not be charged any VA Funding Fee.
Back to most frequently requested guidelines index
VA Maximum mortgage
The mortgage limit for VA Mortgages is currently $359,650.00.
The most recent change took effect December 10, 2004.
Back to most frequently requested guidelines index
VA Seller paid closing costs
The seller contributions on a VA Mortgage are only limited by
the following:
- The seller is allowed to pay all of the veterans closing
costs, points and pre-paid expenses up to a maximum of 4% of the
purchase price. The VA has no minimum investment requirement for
veterans. I have helped many VA homebuyers arrange the terms
of their purchase so almost all of their upfront fees, including
earnest money are refunded at closing.
- How much the seller will agree to pay. Sellers obviously
would prefer not to pay any closing costs for a buyer. If the
seller does agree to pay part or all of your closing costs, they
will typically not simultaneously give you the lowest possible
purchase price you could have negotiated. Let me give you an
example of what I typically see happening. Let's say you could
have negotiated a purchase price of $200,000.00, but you ask the
seller to pay $5,000.00 of your closing costs. The seller will
likely say "I'll pay $5,000.00 of your closing costs, but the sale
price with that condition included will needs to be $205,000.00, so
my net proceeds will still be approximately the same." The
seller's net proceeds after selling for the slightly higher price
are almost the same. (I said almost the same because Real Estate
commission fees will be slightly higher). Even though your mortgage,
and therefore your mortgage payments will be slightly higher, you
will need less money to close the transaction. You need to
decide if it is more important to you to pay out less money at
closing, or to have a slightly larger mortgage payment.
In this example, the home must still appraise for the full sale
price of $205,000.00.
The calculations can be somewhat complicated, especially when
trying to figure out how much to ask the seller to pay, but I make
the calculations every day, so give me a call and let me help.
Back to most frequently requested guidelines index
|
|
