Tag: va home loan

Michigan VA Loan Site Condos

VA site condos in Michigan

The Department of Veteran Affairs has announced a major change that will waive the condo approval process for homes built as site condos in Michigan. This change will open up the availability of homes for VA loans and speed up the home loan process.

Effective immediately, site condominiums in the state of Michigan will be processed in the same manner as a single family detached residence.

Nearly all new single-family homes in Michigan are built as site condos which were previously required to be approved as if it were a condo complex. These extra requirements caused an unnecessary burden on veterans applying for VA loans in Michigan.

Effective May 24th, 2018, the Veterans Association will now recognize site condos as single family residences. These changes make it easier for veterans to qualify for VA Loans.

To read more visit: VA LOAN CIRCULAR 26-18-12 Changes to Processing Site Condominiums Located in the State of Michigan

Patriotic Veteran Photo

What is a Michigan Site Condo?

A site condo is defined as a single-family detached home that was built in a development under a Master Deed with agreed upon covenants, conditions and restrictions or CC&Rs. No part of the house or land is considered common area, however, the association may collection Home Owners Association dues for amenities that are outside the bounds of the property.

What are the benefits of Site Condos in Michigan?

Many new home developments in Michigan are built as Site Condos where the home and land are owned and maintained by the individual owner and the common areas are maintained by the condo association.

Just like condominiums, site condos may have amenities such as pool areas and recreational facilities. Additionally, the roads to the individually owned properties are maintained by the association. The costs of these amenities are split among the association members in the form of Home Owners Association Dues (HOA dues). The costs of the dues will vary from association to association.

Why does Michigan have Site Condos?

In 1978 the Michigan Condominium Law was passed which allowed for quick approval of home developments on private property. Since then, the majority of new single-family residences have been classified as “site condominiums” (site condos).

This classification allows developers to build neighborhoods faster and more efficiently because they utilize private roads and common areas that are paid for by the association members.

Patriotic Veteran Photo

Do VA Loans need Site Condo Approval in Michigan?

With Michigan’s VA site condo changes, Military Veterans will now be able to use their VA Loan benefits to purchase Site Condos in Michigan without having to go through the VA condo approval process.

The condo approval process would previously require books of documentation and up to two months for review making it nearly impossible for a small site condo neighborhood to be eligible for VA financing.

Moving forward, Veterans will have a wider selection of homes that they can purchase using VA Home Loans. Veterans can now pick a home and close quickly.

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Buy A House with a Small Down Payment

If you are a first-time homebuyer, getting a mortgage may seem overwhelming — especially with all the different options available. Maybe you don’t have a lot of money for a down payment or your credit isn’t great. The good news is, you can still qualify for a home loan. Here are 4 low or no down payment options that can help you, as a first-time homebuyer, get into the house of your dreams.

FHA Loan

With an FHA loan, all you need is a 3.5% minimum down payment to buy your first home. Because the Federal Housing Administration backs the FHA loan, the qualifications are a bit more lenient. People who have no established credit or small savings for a down payment, and even a credit score as low as 580 can qualify. The FHA loan is also available to immigrants who have a Visa or Green Card, as well as those who have gaps in their employment.

It’s also easier to qualify for an FHA loan if you’ve filed for bankruptcy. With a conventional loan, you have to wait four years after filing Chapter 7 to apply for a mortgage. With the FHA loan, you only have to wait two years. If you filed for Chapter 13, you only have to wait one year. You can also get an FHA loan three years after being foreclosed on your previous property.

VA Loan

The government created the VA loan to provide home ownership to veterans and military personnel. Like the FHA loan, the government backs the VA loan for extra security, so qualifying is easier. To qualify, you must get a certificate of eligibility from the Veterans Administration. Having bad credit may not hinder you from getting approved. VA loans require no down payment or Private Mortgage Insurance (PMI). Veterans can choose either a 30-year fixed VA loan or a 15-year fixed VA loan for up to $424,100. They may also get a cash-out refinance of up to 100% of their home.

USDA Rural Development Loan

For those wishing to buy a home in a rural area, the USDA Rural Development Loan requires zero down payment, making it great for first-time home buyers. The government also backs this loan for added security, so there’s low or no PMI attached to it. You only have to pay a 1% guarantee fee upfront and 0.5% each year after that. That’s less than the 1.75% up front and 0.85% each year with the FHA loan. If you’ve recently filed for bankruptcy or were foreclosed, you won’t have to wait too long to qualify for a USDA loan.

Conventional 1% Down Mortgage

Important Update! Last date for loan submissions is 5/31/2018. Program is being discontinued.

Riverbank Finance offers homebuyers a way to put only 1% down on a home and still get a conventional mortgage. In this case, the home buyer puts 1% down and the lender (Riverbank Finance) contributes 2%, giving home buyer 3% equity when closing on the home. Freddie Mac created this option to make homes more affordable for new buyers. It allows people to buy a new home for, essentially, the cost of one month’s rent and avoid PMI altogether or drop PMI in the future. Your 1% down payment may be a gift from someone, you must have at least a 700 FICO score, and your debt-to-income (DTI) ratio is limited to 43%.

For more information or to speak with a loan officer about any of these mortgage options, call Riverbank Finance at (800) 555-2098.

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VA Loans Just Got Better

 

For eligible servicemembers, veterans, and surviving spouses, the existing VA home loan program just got better! The Department of Veterans Affairs (VA) has introduced a new policy regarding how student loan debt affects mortgage eligibility.

Related: VA Loans for Military Veterans

VA loosens Guidelines for Student Loans

The new policy makes it easier for VA eligible borrowers to obtain a purchase or refinance loan, by changing the way student loan monthly payments are calculated. Prior to this change, 1% of the total student loan debt had to be counted toward the borrower’s debt-to-income (DTI) ratio each month, regardless of actual monthly payment structure or deferment. Now, however, the payment will be calculated based on 5% of the total student loan debt, divided by 12 months. Clear as mud, right?

Lets do some math!

For example, lets say John has $65,000 in student loan debt. Formerly, his monthly student loan payment would have been $65,000 * 1% (.01) = $650. Now, his payment will be $65,000 * 5% (.05) / 12 = $271.

What if John is on an income-based repayment structure, and only pays $250 per month? The new policy also allows a statement from John’s student loan servicer to be provided, allowing the calculated payment to reflect the actual loan terms.

What if John’s student loans are in deferment? If his repayment is scheduled to begin within 12 months from the estimated closing date, we must use the 5% / 12 months rule. If not, however, the payment can be omitted altogether if written evidence can be provided that repayment will be deferred at least another 12 months from the closing date.

By changing the way student loan payments are calculated, more VA eligible borrowers will qualify, and for a larger amount. Check out our VA Mortgage Calculator to estimate your monthly payment on a desired home purchase.

What is a VA home loan?

VA home loans are originated by private lenders, banks, and mortgage companies, but the VA guarantees a portion of the loan, allowing us to offer you more favorable terms. VA purchase loans help you buy a home with a low interest rate, without requiring a down payment or private mortgage insurance (PMI). There are also special VA loan programs for Cashout and Streamline Refinances.

Who is eligible for a VA home loan?

Active servicemembers, veterans, and surviving spouses are eligible for VA home loan programs, with a valid certificate of eligibility (COE). Length of service or service commitment, duty status and character of service determine each veteran’s eligibility for specific benefits. All VA borrowers are still subject to the minimum credit score requirement of 580 and sufficient income levels to cover expected monthly obligations. For more specific information on eligibility and requirements, visit the VA benefits website.

For More Information Visit the VA Student Loan Announcement.

Get More Information

To apply for a VA Mortgage or Refinance call Riverbank Finance today at 1-800-555-2098.

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One Time Close VA Construction Loan

va-construction-loan


Riverbank Finance LLC now offers Construction to Permanent loans for new stick built homes, manufactured and modular homes. Our one time close home loan provides land purchase, construction finance and the permanent loan into one closing.

With a VA construction loan you are able to get your loan underwritten, approved and close before the construction begins. With a one-time close construction loan there is no chance of a low appraisal after the house is built. There is also no chance that you will no longer qualify for financing with a loan following the build; One-time means once you close you are fully approved and simply need to move in once it is built.

VA Construction Loan Benefits

  • 100% Financing – Zero Down Construction Loan
  • Reduction in total costs for only one closing versus the standard construction loan and end loan
  • Reduced Interest Rates for VA Loans vs Conventional
  • No Payments due from borrower during construction
  • Borrower’s first payment begins once construction is complete
  • No credit, document or appraisal expiration once the loan closes
  • No Re-Qualification of borrower once construction is complete
  • Builder/Retailer is allowed staged funding draws during construction based on line-item completion

Loan Requirements

  • 620 Minimum Credit Score
  • $417,000 Maximum Loan Amount (or per state max)
  • Owner Occupied Only
  • 1 unit properties only
  • No single wide mobile homes

Term Options

  • 15 Year Fixed Rate
  • 30 Year Fixed Rate
  • (No Adjustable Rate Mortgages)

If you are a US military veteran and you are interested in building a home then the One Time Close VA Construction loan is the loan for you. We will help to request your Certificate of Eligibility form the Veterans Administration on your behalf and pre-approval you for your next home.

VA Home Loans for Military Veterans | Free Appraisal

Veterans Day - Free Appraisal OfferAbout Veterans Day

As the United States continues fighting overseas, the population of military veterans continues to increase. According to the most recent Census information there are over 21 million veterans that have served our country. The growing population of veterans struggle to receive proper healthcare and are faced with repeated VA hospital related scandals and deficiencies. There are nearly 4 million veterans with service related disabilities that return to the United States and are in great need of a helping hand from those around them.

Please remember the meaning of Veterans Day and together, let’s honor those who have served our country.

VA Home Loan | Free Appraisal Offer

Here at Riverbank Finance, we take pride in offering zero down VA loans to our military veterans. As with most of our loan options, we offer VA loans with no lender fees and have zero cost loan options. From today through the end of November, the owners of Riverbank Finance will personally pay for the appraisal cost for new VA-eligible home buyers that receive financing through our company.

Disabled Veterans can Waive the VA Funding Fee

For military veterans with a disability rating of at least 10%, the Veterans Administration will waive the VA funding fee.  Additionally surviving spouses of veterans who died in service or from a service-connected disability are also eligible to have the VA funding fee waived.

Michigan Property Tax Exemption

Veterans that have served our country and have disability rating of 100% are eligible to have their Michigan property taxes waived for their primary residence located in the state of Michigan. We would love to help our disabled veterans complete the required paperwork to have their property taxes waived as part of our home buying process.

We look forward to helping you buy a home with no down payment using your VA benefits. Call a VA loan officer today at 1-800-555-2098 to start your home purchase application or request information below:

Request Information Now!

Disclaimer: Appraisal program available only to new clients that are approved for VA financing. Riverbank Finance LLC reserves the right to discontinue this program without notice. Not all will qualify. No purchase necessary. Call 1-800-555-2098 to request your VA certificate of eligibility through the Veterans Administration.