NEW VA GUIDELINES COMING - BUY OR REFINANCE NOW

Unless you�ve been in the mortgage business for say twenty years or so, you may not be aware that during the height of the housing bubble, approved VA lenders never swayed from existing guidelines when approving a VA loan application. Even though the VA loans require no money down, something some pundits claim helped create a rash of foreclosures, the VA program held true and didn�t participate in the subprime or �alternative� lending business. It might also surprise you that in light of requiring nothing down, it was the VA loan program that had the lowest foreclosure rate of any program on the market and still makes that claim today. That said, the VA mortgage program has some new guidelines coming next year. And these changes might just mean you�d better take out that VA loan now in case the lending guidelines become more strict than they are today.

For those who qualify for the VA mortgage loan program seeking the best loan with no money down, there is no need to look further than the VA loan. Not only does the VA loan program require no money down from the borrower but the veteran is restricted from paying certain closing costs typically associated with a conventional mortgage. No down payment and reduced closing costs are perhaps the two most attractive features of the VA home loan.

Further, there is no monthly mortgage insurance payment in conjunction with a VA loan while interest rates are as competitive as any. For those who are considering refinancing, the VA makes the refinance process so much easier compared to a conventional refinance. The VA streamline refinance requires no minimum credit score, no employment verification and no appraisal. As long as the new payment is lower than the old or the veteran is refinancing out of a variable rate into the stability of a fixed, the VA streamline refinance can be approved. All that said, when the VA puts out new guidelines for the coming year, it�s an unknown until the guidelines are released. Knowing the VA, it�s almost a certainty the new requirements won�t be relaxed.

For more information or questions about mortgage loans,
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