Kelly L. Zitlow

Get up to Speed on Arizona VA Home Loans

VA home loans are often dismissed in Arizona as difficult to maneuver through. I'd like to set the record straight on this. VA loans offer a fantastic opportunity for active duty and retired veterans, widows who have not remarried, spouses of MIA's/POW's and those in the National Guard reserves.  These Arizona VA loans aren't difficult in the least! Where else can you find a ZERO down home loan, up to a $417,000 loan amount with no monthly mortgage insurance in Maricopa County today?

Below are a few of key items to keep in mind when you have an Arizona VA Loan borrower:

• 100% Financing up to $417,000 ~ No mortgage insurance

• VA home loans most often require a funding fee*, it is financed into the VA Loan which is why the loan amount may exceed the purchase price.

Example:

Purchase Price:         $100,000
Down Payment:        $0
Base Loan Amount:  $100,000
Funding Fee (2.15):  $2,150
Total VA Loan Amount: $102,150 (Amount reflected on LSU & Pre-Qual Form)

• Seller can contribute 100% of the buyers "normal" closing costs and pre-paid items. The max seller contribution beyond "normal" closing costs is 4%. Request seller contribution on lines 77 & 78 of AAR purchase contract.

• Line 79 - 80 of the Arizona contract ~ VA Loan Costs not permitted to be paid by the Buyer. The most notable costs not permitted to be paid by the Buyer on a VA loan are lender fees: underwriting, processing, application, document preparation and tax service.  This dollar amount generally ranges from $900 - $1500 and may vary by loan amount. Contact the buyer's lender to get their respective fees.   The buyer cannot pay any part of the Escrow Fee and this verbiage is already noted on line 79 of the contract.

• VA Condos ~ Approved VA condo projects can be found on the following website:  https://vip.vba.va.gov/portal/VBAH/VBAHome/condopudsearch

• Upcoming Changes to the VA Loan Funding Fee on October 1^st ~ the current *2.15% funding fee seen above is for first time users. This % will fluctuate for subsequent users, loan to value and reserve/national guard status.  VA Loan Funding Fees are set to decrease for VA transactions funded after September 30, 2011 unless Congress passes further legislation.

We are proud to offer VA home loans in Arizona. Don't hesitate to call me should you need more detailed information on any Arizona mortgages or VA home loans. Our team goal is to not only close on time, but to also provide our client's and referring business partners a smooth, well communicated and knowledge based mortgage lending experience! We're here to assist.

~ Kelly

Quote of the week:  Words can never adequately convey the incredible impact of our attitude toward life. The longer I live the more convinced I become that life is 10 percent what happens to us and 90 percent how we respond to it. ~ Chuck Swindoll

First Posted 9/12/2011