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The First Time Home Buyers tax credit of up to $8000 has been extended for Military personnel!!!
Here are the details :
Active-veterans who serve on an official, extended duty service outside of the United States for at least 90 days during the period of December 1st 2008 through May 1st 2010 will be granted a 1-year extension on the home buyer tax credit. In other words, any active veterans who served overseas for over 90 days between the aforementioned dates can qualify for the same home buyer tax if they are in contract to purchase by April 30th, 2011 and complete the transaction by June 30th, 2011. Any veteran who’s thinking of buying a new home who served overseas during this timeline should be happy to know they have an extra year to find a new home.
Purchase with $0 Down
A VA Loan is one of the only loan programs that still allow the borrower to finance 100% of the home's value and purchase with $0 down. Now more than ever banks are requiring large down payments for conventional loans. In many cases they require 3.5-20% down, putting home ownership out of reach for many prospective buyers. There is no maximum VA loan but lenders will generally limit VA loans to $417,000.
Lower Your Monthly Payment
A VA Loan offers two benefits that will substantially lower your monthly payment. PMI, or private mortgage insurance is not required on a VA loan. PMI is an added monthly expense required for conventional loans where the borrower finances more than 80% of the home's value.
Interest rates are also lower with a VA Loan, typically 0.5%-1.0% lower than a conventional loan. A lower rate combined with monthly PMI savings can substantially lower your monthly payment as illustrated in the chart below...
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VA Loan - Estimated Monthly Payment Savings |
|
Loan Amount |
1.0% Rate Reduction |
PMI Savings |
Est. Monthly Savings |
|
$150,000 |
$94 |
$115 |
$209 |
|
$250,000 |
$156 |
$191 |
$347 |
|
$350,000 |
$220 |
$268 |
$488 |
|
$450,000 |
$282 |
$345 |
$627 |
*Estimates based the borrower putting $0 down with a 1.0% interest rate deduction.
Before you start the loan process, you'll need to have some information at hand for all loan applicants:
- Social Security numbers
- Residence addresses for the past two years
- Names and addresses of your employers over past two years
- Your current gross monthly salary
- Names, addresses, account numbers and balances on all checking and savings accounts
- Names, addresses, account numbers, balances and monthly payments on all open loans
- Addresses and loan information of other real estate owned
- Estimated value of furniture and personal property
- Certificate of Eligibility and DD214, (for veterans only)
- W2's for the past two years and current check stubs
- For self-employed individuals, you will need to provide personal tax returns for the past two years, current income statement and balance sheet for the business
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