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Missouri VA Loan Report 2010


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  • Wow this is a fully informative report. Thanks for sharing.
    I wrote a quick three stage break down on VA loans recently. Perhaps it will be of help to your readers.
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  • 1. VA Loan Report Realtor’s Edition Missouri - 2010
  • 2. 2 The Veterans Administration now “The one important guarantees more than 3,300 loans in factor in a VA loan is Missouri. We will show you how to that once a purchaser earn an additional 3-4 deals per year is preapproved, you are generally assured from this group of home buyers with that they will have very little effort. a successful closing because VA does require good credit The next few pages provide Realtors for a buyer. Another with the key basics of VA loans. advantage for VA loans In less than five minutes, you’ll is that a vet can use his eligibility more than be prepared to discuss, market once.” and sell like few other agents in Missouri. The CurrenT LandsCape Kathy Jones Prudential Patterson On the heels of the subprime collapse, the Department of Realtors Veterans Affairs guaranteed more than $68 billion in single- family loans for the fiscal year ending Sept. 30, 2009, an 80 percent increase from last year. There are currently more By the Numbers than 23 million veterans across the country, including almost Missouri Realtors by Year 530,000 in Missouri. 60,000 Against this backdrop, the ranks of registered Realtors are 52,322 51,562 thinning nationwide. In Missouri, the number of registered 50,000 48,101 agents has fallen 8 percent since 2007. That shortage is forcing veterans to spend more time hunting for a qualified agent than ever before. Realtors who can cater 40,000 2007 2008 2009 to this deserving demographic stand to boost their book of business significantly as veterans return home from Iraq and Afghanistan in the coming months.
  • 3. 3 Missouri CounTies wiTh highesT perCenTage of VeTerans Boone Jackson St. Charles Johnson Pettis Cass M St. Louis or ga n Henry Camden St Pu Fr . las an ki co is Texas St on e Taney Howell Pulaski Camden Stone Morgan Henry Johnson Taney Texas 27% 18.5% 16.1% 15.8% 15.6% 15.6% 15.2% 15.1% Howell Pettis St. Fran- Cass St. St. Louis Jackson Boone 14.9% 14.3% cois 13.3% Charles County 11.1% 9.3% 14.1% 11.2% 11.2%
  • 4. 4 The Veteran Percent of people, 18 years and over, who are Population veterans by state 15.5 to 17.1 14.0 to 15.4 0 100 Miles 2000 U.S. percent 12.7 12.7 to 13.9 5.4 to 12.6 Percent of people, 18 years and over, who are veterans by county 18.0 to 39.1 15.0 to 17.9 12.7 to 14.9 U.S. percent 12.7 8.5 to 12.6 Less than 8.5 Source: U.S. Census Bureau, Census 2000 Summary 0 File 3. American Factfinder at fact 0 100 Miles 0 100 Miles 100 Miles provides census data and mapping tools. The BasiCs VA loans are backed by the government, a layer of protection that often translates to excellent loan terms for qualified veterans. VA loans can be used for a host of purposes, including: • To buy, build or refinance an owner-occupied residence • To refinance an existing VA-guaranteed or direct loan • To repair, alter or improve a veteran-owned residence • To simultaneously purchase and improve a home • To buy a single-family residential unit in a VA-approved condominium development • To buy a farm residence owned and occupied by the veteran
  • 5. 5 There are a few limitations on properties that can be financed with a VA loan. VA loans cannot be used for: “I love VA loans! It’s a fantastic product for the client. Sellers can • Land loans contribute up to 4% • Investment properties of the purchase price, • Buying or building a combined residential and business there’s no PMI and property, unless: typically, VA loans have The property is primarily residential, with no more a better interest rate than one business unit and a nonresidential area than most conventional, that doesn’t exceed 25 percent of total floor space even FHA financing! • Buying more than one separate residential unit or lot No money down for the buyer is always great!” unless one is owner-occupied and there’s evidence that: The units are not available separately Kelly Sloan, Broker The units have a common owner, were considered Home Sweet Home Realty one unit in the past or are assessed as one unit Agent Reminder: VA Loans come with The BenefiTs NO DOWN PAYMENT. VA Loans provide qualified veterans with an array of financial and lifestyle benefits, including: • Less stringent qualification guidelines • No down payments • No private monthly mortgage insurance • No pre-payment penalties • Higher allowable debt-to-income ratios than conven- tional loans • Sellers can pay up to 6 percent of closing costs and con- cessions • Refinance options that do not have credit score re- quirements and require less stringent underwriting requirements than traditional refinances.
  • 6. 6 Loan LiMiTs Agent Reminder: Today, the VA will The VA pledges to repay a quarter of the loan amount in the guarantee up to event of default. The amount of that guarantee has recently $104,250, which has increased, making homeownership more affordable to more boosted loan limits to veterans and their families. $417,000 throughout most of the country. Today, the VA will guarantee up to $104,250, which has boosted loan limits to $417,000 throughout most of the country. However, there are higher loan limits in some of the nation’s high-cost areas, such as Hawaii, California and New York. In these high-cost regions, qualified veterans can “The best feeling as purchase a home worth up to $729,000 without putting down a realtor is watching a single dollar. someone who served our country purchase a home. My experience with VA funding fee loans has always been wonderful.” The Veterans Administration charges a per-person funding fee to help defray program costs. There are exemptions for veterans with service-related disabilities, but generally the fees change depending on the borrower’s military status and down payment. For regular military, the breakdown is: Down Payment Funding Fee for First-Time Use Brooke Sydenstricker McCarty None 2.15 percent Weichert, Realtors 5% or more 1.50 percent 10% or more 1.25 percent
  • 7. 7 For the Reserves and National Guard, the funding fee table is: Agent Reminder: Down Payment Funding Fee for First-Time Appraisal costs typically Use average about $350. None 2.4 percent 5% or more 1.75 percent 10% or more 1.50 percent For cash-out refinancing loans, the funding fee is 2.15 percent for regular military and 2.4 percent for Reserves and National Guard. appraisaLs Each VA field station sets a maximum appraisal and inspection fee based on comparable costs. Appraisal costs typically average about $350. Here is the cost breakdown for Missouri: Single-Family Condo Manufac- Re- Home Condo tured Home Inspection $300 $325 $225 $65 Manufactured homes are eligible for a 30-year VA loan if: • It is classified and taxed as real property • It is property attached to a permanent foundation • It conforms to applicable building codes and zoning requirements
  • 8. 8 New construction (those less than a year old and never owner- Agent Reminder: occupied) is eligible if either: The VA offers flexible refinance options for • Covered by a one-year VA builder’s warranty qualified borrowers. • Enrolled in a HUD-accepted 10-year insured protection plan, or • Built by a veteran as the general contractor for his or her own occupancy There are exceptions for veterans if builders will not provide a one-year builder’s warranty or a 10-year insured protection plan. repayMenT and By the Numbers Refinances refinanCe 150,000 144,800 TThe VA guaranteed more than 144,000 refinances in fiscal 120,000 year 2009, a jaw-dropping 300 percent increase from FY 08. 90,000 60,000 The VA offers flexible refinance options for qualified borrowers. 30,000 37,300 0 Veterans can utilize a cash-out refinance to consolidate debt 2008 2009 or refinance to obtain a better interest rate using an Interest Rate Reduction Loan, better known as a VA Streamline. Qualified borrowers can’t get cash back with a VA Streamline. But any out-of-pocket costs can be rolled into the cost of the new loan – or borrowers can accept a higher interest rate and allow the lender to cover the costs. There are also refinance options for veterans with conventional home loans. Qualified veterans can currently refinance up to 100 percent of their property’s appraised value. Veterans and their families can also prepay on their loan without financial penalty. Qualified borrowers can’t get cash back with a VA Streamline. But any out-of-pocket costs can be rolled into the cost of the
  • 9. 9 new loan – or borrowers can accept a higher interest rate and allow the lender to cover the costs. There are also refinance options for veterans with conventional home loans. Qualified veterans can currently refinance up to 100 percent of their property’s appraised value. good Business for reaLTors and Their CLienTs Veterans are increasingly turning to the Veterans Admin- istration when the time comes to purchase or refinance a home. A roiling national economy and hardened credit market have only underscored the urgency. But surprisingly few Realtors have significant experience with VA loans. Those who can harness the power of this dynamic and deserving demographic will have a significant advantage as the agent pool continues to shrink.® PROUD TO SERVE THOSE WHO HAVE SERVED OUR NATION This guide was produced by VA Mortgage, America’s #1 VA Loan Purchase Specialists. Founded in 2003, has worked with over 500,000 military families and serviced over $1 billion in VA Loans in 2009. 800-405-6682 Licensed Nationwide