An easy guide to know how much you can get a loan for.

Lets get to Brass Tax here.

The maximum guaranteed on a VA loan is 240,000 and while this might buy a fairly large sized house in most areas of the country, high priced markets such as San Francisco or New York  you may want to try a different form of financing your loan. For the most part first time buyers will be guaranteed up to the VA’s Maximum of $240,000 dollars says Keith Pedigo, the director of loan guaranty services at the VA. But more than likely the actual mortage rate is based on assets, income, credit history and debts, just like any other regular loan provided in America.

A positive spin to this story is that a seller is allowed with permission by the VA to let  the buyer assume their loan, making resales much more attractive then they previously were. The only downside is the veteran is shackled to that home until paid off before he or she can use that loan to buy another home. A veteran is only allowed to borrow the difference between the outstanding loan and the maximum allowed by the certificate of eligibility, says Pedigo.

A cautionary piece of advice that most veterans already know is save your paper work if you paid off your loan so if you ever apply for another VA loan you can ask for the maximum amount you’re allowed.

A VA loan is still tough to be approved for.

“Because we’re a no-down-payment program, that’s a benefit to vets,” he says. “We do try to be as flexible as we can. But that doesn’t mean we approve an application with a serious lack of credit or insufficient income.”

But the major distinction for a VA loan is that a buyer can get into a home without investing a down payment, says Pedigo, “which is a huge advantage.”

And a huge advantage is saying the least in these days of economic shortcomings. As Hunter Thompson once said, “The bastards now have a formidable opponent”.

Well, till next time lads and like always if you’d like to find out if you qualify for a VA home loan click here.

“The continued strong performance and high volume of VA loans are a testament to the importance of VA’s home loan program and a tribute to the skilled VA professionals who help homeowners in financial trouble keep their homes,” said Secretary of Veterans Affairs, Eric K. Shinseki.

Last year the number of veterans that were helped through an almost default on their mortgage loan reached 72,391. These men and women were either able to retain their homes or avoid foreclosure. This number of veterans helped increased from the previous year’s number 66,030. At the same time foreclosure rates have dropped by a nearly 28 %.

The year of 2011 alone guaranteed 357,594 loans, a dramatic increase of 14%  that’s nearly 50,000 more loans than the year of 2010 according to the VA. There are over 1.5 million VA home loans out in circulation as we speak. The VA home loan program gains its strength from its employees nationwide who are on their on personal mission to ensure all veterans and service members are aware and receive all the opportunities to remain in their homes, avoid foreclosures and downgrades to their credit from the consequences of foreclosures.

“We are committed to making even more Veterans and Servicemembers aware of this important benefit and delivering the assistance they deserve when financial difficulties arise,” said VA’s Under Secretary for Benefits Allison A. Hickey.

If you think a no money down VA home loan might be a viable option for you click here to see if you qualify.

He spoke about a plan to make America built to last. In this plan he asks simple things such as higher taxes for the rich such as Warren Buffet and lower taxes for those earning under 250,000 dollars a year.

They even brought in Warren Buffet’s secretary to be present. That way when the president addressed the issue of taxes for the rich and less for the middle to lower income he could show the example of how the tax system is so backwards that Warren Buffet’s secretary pays more in taxes than her boss.

Even more dramatic effect was added when they peaked the camera at her for an instant as he was speaking of this issue.

Obama also went onto the usual bread and butter subject. That is no more outsourcing or incentives for companies who seek to outsource American jobs. Instead create incentives for insourcing of U.S. jobs. “send me the bill and I’ll sign it” Obama announced.

I was pleased to hear that he seeks to bring car companies manufacturing back home and with a green energy twist to boot. We have seen the new influx of completely electric cars in the last year. If America can just get with the program and embrace the future we can grab the reigns of this industry before other companies snatch it from our grasp. Getting this industry back means more jobs, more revenue, more taxes, reemergence of dying cities such as Detroit and others. It could be an American renaissance so to speak.

I’m not endorsing Obama for president just yet. He has still not spoken about the atrocities that the federal reserve is creating, barely addressed the national debt. He only offered about a total of 1 min to the national debt talk to say that they’ve worked out a 2 trillion dollar cut. Which I don’t know if that cuts it at all since he has these huge plans of rebuilding America’s roads bridges and things of that nature. Where would this money come from?

It all sounds idealistic but realistic I guess I’d have to see it to believe it and that’s where this State of the Union gets voters. It all sounds good and gravy but the only way to test his plan for validity is to re-elect him and see what happens. We’ve already went through that once with Mr. Obama electing him thinking, man all his change, hope and ideas they sound awesome we need that guy only to find most of it didn’t pan out like we wanted it to. The speech also spoke about how we got in this mess and who caused a lot of it aka Mr. Bush and Chenney.

He didn’t directly blame them but he did however make it clear that he didn’t exactly inherit a prosperous on the up economy nation. He had the opposite. A nation in a war that couldn’t be won. Costly to the people and veterans. It cost the non military adults their checkbooks, the veterans their health, and the youth their future.

Most of all the speech sounded like a diagnosis much of OWS would agree with. The middle class is failing, foreclosures on the rise and the poor struggling with homelessness and healthcare. It was very Occupy Wall Street-esque in the sense that his answers to these problems were very broad. No exact answers as a speech as short as 7000 words can’t tell the exact details of how to fix the problem but it can tell you there’s a problem and it needs fixing today.

Now how does this tie into VA Home Loans you may be asking since in fact this is a home loan site? A strong and aware America is a better America is the answer. If we know what the problems are and keep fighting for solutions eventually we’ll get them. Like the SOPA and PIPA bill shutdown the people still do have a voice.

It’s only when the American people get together as a whole and agree on what needs to be done that politicians actually listen. When they pass a law we need to be right next to them breathing down their neck reminding them that they represent us not companies or anyone else other than citizens of THIS COUNTRY.

This means the government cannot borrow to fund its operations overseas or pay for public schooling as cheaply as it once did. The interest rates at which the government borrows money at have gone up.

There is still denial by the Obama administration that the downgrade conducted by Standard & Poor was justified. It was said that the budget could not be balanced adequately with the bipartisan agreement of 2.1 trillion dollars in savings that are available to implement.

Luckily for veterans the VA Home Loan Centers announced that loan applications for veterans will not be compromised despite the downgrade. Veterans also have the benefit of not worrying about skyrocketing interest rates which is a plus.

“Smart Veterans are taking advantage of the record low interest rates caused by the S&P announcement,” says Phillip D. Georgiades the VA Home Loan Centers’ Chief Loan Steward. “We’re happy that we’ll be able to help our nation’s veterans even more now, and not cause additional strain.”

Clicke here to see if you qualify for a VA Loan.

In the last year the Government has insured that 489,418 veterans get a home Loan. Thats nearly 63 billion dollars allotted to VA home loans. Now with the gov’t protecting the lenders and dishing out the cash is now a time to jump on the gravy train before its too late?

While the government doesn’t always do a good job on taking care of veterans in health issues they seem to be more than happy to dish out cash at no money down for vets to move towards owning a home. They limit the amount lenders can charge on closing costs, origination fees and even appraisal fees.

No mortage insurance is required as well. In fact the VA prohibits lenders from requiring it which is fantastic news. Bob Finneran, the VA’s assistant director for loan policy and valuation said. “We’re putting a guarantee on the loan, so we’re not expecting them to get other insurance and charge the veteran for that.”

Why is the government so intent on helping veterans buy homes?

I just don’t know. Could be that they’re self conscious of the housing crisis many of them let happen and how it makes America look on the global stage.

Or maybe they’re not the completely conspiratorial money horders we make them out to be, and they do have a sliver of concern left for those who served and protected in the wars they voted for and didn’t serve in.

The answer is we’ll never know, but one thing I am sure of is that this VA loan benefit is just that. A benefit, a tool to be used with discretion but certainly a tool just like a fork if used right you’ll have a better chance at getting all the food in your mouth instead of on your nice 700 dollar tacticle turtle neck you just got for christmas. Beware though if the tool I speak of is used wrong you could end up with a fork sticking out of your leg if you catch my drift.

If you’d like to take advantage of the opportunity you’re being given at the present moment just click here and see if you qualify for a VA Loan yourself.

Now lets add this to the presidents announcements that troops stationed in Iraq are scheduled to return and you have yourself a free for all for who’s going to get the best deals on houses that were marked down in the housing crisis of 08. With houses down in price and veterans coming back with benefits to boot now seems to be a good time to put those benefits to work, invest and let the profits begin.

VA Lenders such as VA Mortage Center are also implementing a zero Money down policy which is a big upside to this years added incentive to get veterans homes which are affordable and within their means to pay off. Cause this time around we would like to see Americans get loans and keep their homes unlike during the housing crisis, it would be a nice change don’t ya think.

On another note the way loan limits are calculated is scheduled to change this year 2012. The limits in the 48 States in the U.S. that are in between Mexico and Canada will range from $417,000 dollars to a possible maximum of $625,500, depending on the median county price.

These limits are not the actual limit to which a lender can lend a veteran for a home loan, it is merely the limit to which lenders can loan to a veteran for a home and still recieve a 25 guarantee.

 What does this mean? 

It means lenders will be more eager to loan only up to the limit since it almost guarntees a return on their investment. Basically it is a security for them to have so that they know the risks are minimal, and when they believe risks are minimal thats good for them and good for veteran who wants a loan because their more likely to get that loan. These are the cards we are dealt by this capitalist system so we might as well make a pair of twos into a royal flush. Click here to see your cards in the poker game that is American home purchasing roulette.

In 3 years, market will likely be governed by local issues, not credit crisis

If you’re like most first-time home buyers, you’ve probably listened to friends’, family’s and coworkers’ advice, many of whom are encouraging you to buy a home. However, you may still wonder if buying a home is the right thing to do. Relax. Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will appear to you.

Consider that for 2012 we actually have a positivie economic outlook.

Americans have not seen a boring housing market since the last millennium. You know — the average, ordinary kind of market where supply just about matches demand, prices are steady, and real estate ceases to be a topic of daily conversation. Instead, we’ve had six years of upside craziness followed by three years of downside terror. Now we’re in a tug-of-war between those who think we’ve finally found a bottom and those who are convinced that the overhang of unsold homes is going to push prices considerably lower.

By 2012 we may finally get back to blissful boredom. With any luck, three years should be long enough for the U.S. economy to recover and for the nation’s housing inventory to shrink to more normal levels. At that point, housing will return to its old ways, with prices governed not by national mood swings and global credit crises but by local issues ranging from zoning to immigration to job growth.

Prices? While they’re likely to keep falling a while longer under the weight of foreclosures, the market is definitely closer to the bottom than the top. “We expect prices to drop for another year and then stabilize before starting to rise with incomes,” says Standard & Poor’s chief economist David Wyss. Moody’s Economy.com predicts the S&P/Case-Shiller U.S. National Home Price Index, maintained by data specialist Fiserv, will fall about 16 percent this year before regaining ground. Based on the National Association of Realtors national median home price of $180,000 for the fourth quarter of 2008, that would mean a median of $152,000 at the end of 2009 and then a rebound to $179,000 by the end of 2012.

All real estate is local
Of course, the national median price is an artificial construct, since there is no such place as National Median, U.S.A. Different trends can have a big impact on sales and prices across the U.S.

Local job growth is one of the most important factors to study when assessing a market’s prospects. Omaha, for example, which has attracted employers such as Yahoo! and Google, missed out on the boom but is likewise dodging the bust. With the city adding jobs, the prospects for home prices look good. Detroit, where home prices fell by a third from 2003 through 2008, is likely to suffer even more in coming years as the auto sector continues to shrink. Demographic change, another trend examined here, is equally influential. For instance, Salt Lake City’s youthful population is primed for house buying. While the bust left prices in once-bubbly Western markets such as Phoenix and Vegas lower in 2008 than in 2003, Salt Lake prices rose 51 percent over that period.

Other important factors are even more local than those, such as how far a house is from the nearest supermarket. You’ll know we’re back to an ordinary, boring real estate market when buyers focus less on the intricacies of foreclosures, short sales, and the like and go back to the things that used to matter most: What are the schools like? How quiet is the neighborhood? When am I going to have to replace that roof or cut down that diseased oak?

Sellers Mark and Maura Rampolla, who put their house in Oradell, N.J., on the market early this year, are coping with ultra-local issues such as their house being on a fairly busy road. They’re also up against the national housing crisis angst. The Rampollas bought their house for $556,000 in 2004. Now they need to sell it because they’re moving to the Los Angeles area to set up a West Coast distribution hub for their coconut-water sports-drink company, Zico. They listed the house for $599,000, which would represent a loss after factoring in closing costs and renovations. House hunters didn’t even nibble on the property that the Rampollas and their two young daughters have grown to love. In mid-June the couple dropped the price to $559,000. “People say it’s a beautiful house, but they’re just very nervous right now,” says Maura.
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The Rampollas will probably end up being the first owners to lose money on the Oradell home since it was built in 1925 — a phenomenon that’s happening across the U.S. The classic American foursquare, with four bedrooms and original chestnut molding, was sold by the Bonavita family to the Riccio family for $47,000 in 1972, the first recorded transaction price. The Riccios made out by selling to the DeSouza family for $285,000 in 1997. The DeSouzas sold just seven years later to the Rampollas for $556,000. “We actually bought the house in a day,” laughs Maura. “Mark ran through the house in 10 minutes, I kid you not, because he had to get to a meeting in Queens. … We had nothing to sell, and we just said: ‘Great!’ ”

The good news is that the Rampollas’ loss could wind up being some first-time home buyer’s gain. From now through 2012, lots of families that couldn’t afford to buy when prices went through the roof will be able to get in on the ground floor. Based on today’s household incomes and mortgage rates, the National Association of Realtors’ Housing Affordability Index is bobbing around the highest level since recordkeeping began in 1970. “To generalize, yeah, it is a good time to buy a house. I don’t think there’s any urgency because I think it’ll still be a great time to buy a house a year from now,” says economist Richard DeKaser of Woodley Park Research in Washington.

Homebuilders are helping by absorbing their share of the pain. In general, the U.S. needs about 1.5 million new homes a year to accommodate the growing population and the demolition of decayed properties. Builders exceeded that rate during the boom, but now they’re building fewer than 500,000 homes per year. Their cutback should reduce the glut of homes and bring the market into better balance by 2012, if not sooner.

A still-murky picture
Most important, the economy should be growing briskly again by 2012, according to Moody’s Economy.com. In May, the firm predicted gross domestic product would shrink 3 percent this year before growing 1.4 percent in 2010, 4.7 percent in 2011, and a robust 5.8 percent in 2012. It’s also looking for home buying and building to return to their pre-bubble paces—no higher and no lower — by 2012.

Even if the economy performs as projected, there’s still plenty that could go wrong in the housing market. Because conditions have been so unusual, “it’s very hard for the model to extrapolate, based on past experiences, what’s going to happen this time,” says Moody’s Economy.com Senior Economist Celia Chen. In a study of global real estate markets, economists Kenneth Rogoff of Harvard University and Carmen Reinhart of the University of Maryland found that home prices fall for an average of six years after a major financial crisis. That would put the U.S. bottom in 2012, or later.

Another risk is that potential buyers will stay out of the housing market, no longer trusting in home appreciation to do their saving for them. Writes David Rosenberg, the former Merrill Lynch economist who is now chief economist at Toronto-based asset management firm Gluskin Sheff & Associates: “Baby boomers are still in the discovery process on oversized real estate being more of a ball and chain than a viable retirement investment asset.” Rosenberg also is concerned that an aging population won’t need the kind of big houses erected during the boom. “The high end of the market will be in a bear phase,” Rosenberg says in an interview.

So much has gone wrong with housing lately that it’s easy to imagine worst-case scenarios. But in the more likely case, the market will fall some more, bounce off its lows, then gradually start growing. By 2012, families like the Rampollas may even get a warm, fuzzy feeling about homeownership again.

Certainly it’s important to help veterans transition to a job when they return home from active duty, but wouldn’t it be appropriate for Congress to find funding for this bill in another area besides the elimination of a fee reduction that would have helped other veterans? Yes, apparentlyCongress believes that veterans should be the ones paying for a veteran’s jobs bill:

To cover the cost of the veteran jobs package, Murray and Miller agreed to a provision that will keep in place higher VA loan guarantee fees for veterans who re-use home loan benefits a second time or more. The higher fees, set in 2003, were to expire but will be extended through 2016.

“The tax breaks and jobs programs for veterans would cost just over $1 billion, and would be paid for by extending a fee the Veterans Affairs Department charges to back home loans.”

Read full article here: huffingtonpost

President Barack Obama has signed HR 2112, the Consolidated and Further Continuing Appropriations Act of 2012 into law renewing the expired higher loan limits for Federal Housing Administration (FHA) and U.S. Department of Veterans Affairs (VA) loans for an additional two years, through Dec. 31, 2013. 

The higher loan limits expired on Oct. 1, 2011, when the size of a mortgage that the FHA could buy or guarantee was reduced to $625,500, down from $729,750. In addition, the formula for establishing limits for high-cost areas also fell from 125 percent to 115 percent of an area’s median home price.

Prior to President Obama’s signature, HR 2112 was approved by a 298-121 vote in the U.S. House of Representatives, and was faced with opposition by 101 House Republicans, many of whom opposed the measure due to the loan limit increase.

“Restoring the higher FHA loan limits will help to stabilize home values, provide constancy while private investors re-enter the market, and enable millions of creditworthy consumers to get home loans with the best mortgage rates and lowest fees and downpayment requirements,” said National Association of Home Builders (NAHB) Chairman Bob Nielsen.

Read full article here: National Mortgage