Benefits of a Boise Idaho FHA Streamline Refinance

• Appraisal usually not required
• Very little paperwork
• No Appraisal Fee (if doing no appraisal option)
• Easily increase or decrease the length of the term of your existing loan
• Take advantage of current low interest rates
• Little or no out-of-pocket costs

If you own a home and you still owe mortgage payments, chances are with interest rates as low as they are you are examining your refinancing options. In today’s economy everyone needs a way to lower their monthly payments and make housing more affordable. An Idaho FHA Streamline Refinance is a great way for a borrower to take advantage of the great interest rates on the market without needing to get an appraisal.

One of the best features of an FHA Streamline Refinance is that an appraisal does not have to be done on the property. As many of you know property values have been on the decline so appraisals have been coming back with values lower than what is needed to refinance many properties. That is why it is very beneficial not needing an appraise done when you refinance your home with an Idaho FHA Streamline Refinance. This also allows means that there isn’t an appraisal fee associated with your FHA refinance.

FHA Streamline Refi’s are a great way to lower your interest rate and your payment without going through the hassles of a standard refinance by not needing an appraisal and there is less documentation required from you by the lender.

A main benefit with Streamline FHA loans is that your monthly payments are permanently lowered. The extra money you have at the end of the month can go a long way toward helping you reach your financial goals.

If you live in Idaho and you have an Idaho FHA Mortgage then an Idaho FHA Streamline Refi is a great way to go. If you have any questions about refinancing your home. Feel free to contact me.

Michelle Guth
Diversified Mortgage Group
Mortgage Consultant
Direct: 208-853-7878
Michelle@dmgloans.com
ID MBL-5696 / NMLS # 36853 / 36852 / 1850
www.idahohomegroup.com

FHA Streamline Requirements

There are certain requirements of a FHA Streamline Refinance. First and foremost, your existing loan must be FHA-insured, current, and in good standing. The borrower must have opened the loan at least six months prior to refinancing. The Streamline Refinance must lower the borrower’s interest rate, thus lowering monthly payments. Cash back is not an option for this type of refinance.

The main reason why Idaho VA IRRL Refinance loan is so popular is that it doesn’t require an appraisal. But in states where home values have declined so severely many folks who have VA loans don’t have enough value in their home to at least match their mortgage amount that they are trying to refinance. In these states most VA loan lenders are requiring appraisals as an extra measure of caution outside of the standard VA loan requirements set by the VA. It is unfortunate – but it is what it is.

Now, if you live in other states where this loan program may be a viable option to refinance your Idaho VA home loan to take advantage of streamline low VA rates then you may want to pick up the phone and call our Idaho mortgage company to see what is possible for you.

You may be wondering if there are other requirements of the Idaho VA IRRRL – or Idaho streamline VA refinance. To satisfy your curiosity below you’ll find some of the other requirements.

VA Streamline Requirements

• Must be current on your mortgage payment
• Cannot have been 30 days late on your mortgage payment in the past 12 months
• You must be able to lower your mortgage payment with this refinance, unless you are refinancing from an adjustable rate mortgage.
• You cannot use this mortgage for cashout purposes unless you are getting money for energy improvements.
• In many states you may have to get an appraisal.
• In many states you may have to prove income.
• In many states you may have to have a minimum credit score.

If you meet some of these requirements and you are wondering about refinancing your Boise Idaho VA loan now is the time to call us to see if it works for you to use the IdahoVA IRRL Refinance – No Appraisal .

Michelle Guth
Diversified Mortgage Group
Mortgage Consultant
Direct: 208-853-7878
Michelle@dmgloans.com
ID MBL-5696 / NMLS # 36853 / 36852 / 1850
www.idahohomegroup.com

It is different from a pre-qualification in that some or all of the submitted information is reviewed for accuracy before the letter is issued.

Having a pre-approval letter from your Idaho VA lender will show home sellers that you are a qualified buyer and may lead to your offer being more seriously considered.

Once you have obtained your Veterans Administration loan pre-approval letter, you will then be able to begin making offers on homes you are interested in purchasing.

In order to get your VA loan pre-approval letter, your lender may require the following:

• At least one months pay stubs or LES (if still active duty).
• W-2′s and Tax Returns for the past two years.
• Two months bank statements for any/all assets.
• Your DD 214 form (if no longer on active duty).
• Statement of Service from S1 (if still active duty)

Your pay stub is needed to show that you are currently employed, as well as your current income. W-2 statements (for the past two years) then show how much you normally earn in a year.

If you are currently still on active duty, your Statement of Service must show a minimum of 12 months remaining on your contract.

Finally, your DD 214 form will enable your Idaho VA mortgage lender to decrease the amount of time necessary for processing your certificate of eligibility. Once again, this is not required, but it is generally a smart idea.

The reason why this is a smart idea is that the majority of direct lenders with the Veterans Administration can put in an order for your certificate of eligibility, which determines whether or not you are eligible for a VA loan.

The process can be very quick as long as you turn in all these documents as soon as possible to your loan officer.

After your Idaho VA loan officer or lender has the described documents, he or she can submit your information in the VA loan analysis software to determine your eligibility. The calculation that will determine your eligibility is:

(Monthly Income) – (Proposed Mortgage Payment + Insurance + Taxes + Utilities for the house + Monthly Credit Card Payments Due) = Residual Income

Residual income is the amount of money that you have after you have paid the sum of your monthly bills. The VA will use their judgment after they have calculated your residual income to decide if you will have a satisfactory amount of money left over after you have paid your bills.

The VA has established various requirements for what your minimum residual income will have to be, such as what part of the country you live in, the size of your family, how old your children are, and various other factors.

When obtaining VA pre-approval letter, be aware that simply getting the letter does not commit the lender to giving you a loan. It just means the initial information has been reviewed. In order for the mortgage application to be approved additional information and documentation about both the borrower(s) and the property must be reviewed to be sure that all of the guidelines are met.

If you have any questions about a VA home loan feel free to contact me.

Michelle Guth
Diversified Mortgage Group
Mortgage Consultant
Direct: 208-853-7878
Michelle@dmgloans.com
ID MBL-5696 / NMLS # 36853 / 36852 / 1850
www.idahohomegroup.com

In most veteran loan scenarios, the VA guarantees up to 25% of the total amount of the loan up to the Idaho Veterans Administration loan limit in your county – which, in much of the US, is $417,000.

But what happens when the value of the loan exceeds your county loan limit?

This is where an Idaho VA jumbo mortgage loan come into the picture.

For the purposes of this example, let’s say that you live in a county where the Veterans Administration loan limit is indeed $417,000. You find the perfect house for you and your family, and it’s selling for $517,000.

You decide that you would like to use your hard-earned veteran benefits to take out an Idaho VA mortgage loan!

So, the Veterans Administration guarantees $104,250 of your loan (with $104,250 being 25% of $417,000). Yet what happens with the remaining $100,000 of the loan?

Simple. The U.S. Department of Veterans Affairs mandates that on jumbo loans above the county loan limit, the borrower put down 25% of the difference between the cost of the loan and the applicable county VA loan limit.

Continuing on with our Idaho jumbo loan example from above, 25% of $100,000 ($25,000) would be required as a down payment, and the Veterans Administration would guarantee 25% of $417,000 ($104,250).

Not bad at all! In this example you’re buying your $517,000 dream home for only $25,000 down in addition to the required closing costs.

The real value of an Idaho VA jumbo mortgage loan is apparent when you compare and contrast it to the standard down payment requirement of an Idaho conventional mortgage, which is typically 20% to avoid paying private mortgage insurance.

This means that for the example $517,000 house, a conventional loan down payment would be $103,400 while a VA loan down payment would only be $25,000. That’s less than one quarter of the down payment required for the conventional loan in this scenario!

Please keep in mind while house shopping that Veterans Administration county loan limits vary widely throughout the country and will be higher in areas with especially high property values. Once again, the standard VA county loan limit is $417,000, but it’s smart to check with your local VA mortgage agent prior to looking at houses.

For example, as of 2011 the VA county loan limit for Marin County is $1,000,000! San Francisco County has a loan limit of $1,000,000 as well.

To check what the VA county loan limits are for each county in the United States, you can visit the U.S. Department of Veterans Affairs at their loan limit website. For counties that are not listed on the website, the official VA loan limit is automatically set at $417,000.

Why is there such as large difference in county loan limits throughout the nation? In short, because the various housing markets across the country vary greatly.

In San Francisco a small single-family house may sell for $1,000,000, while in other places you might be able to find a similar house for $100,000!

If you are in Idaho and in need of a substantial home loan, an Idaho VA jumbo Mortgage loan is certainly worth checking out.

Michelle Guth
Diversified Mortgage Group
Mortgage Consultant
Direct: 208-853-7878
Michelle@dmgloans.com
ID MBL-5696 / NMLS # 36853 / 36852 / 1850
www.idahohomegroup.com

This answer often surprises veteran borrowers who have used the program before.

As you are probably well aware, a Idaho VA loan offers many benefits unavailable with Idaho conventional loans.

In many ways, the procedure for getting a second (or third, or fourth…) VA loan is similar to obtaining the initial home financing.

First, veterans must be able to show that they satisfy the basic eligibility rules mandated by the U.S. Department of Veterans Affairs. The eligibility requirements can be found at the following Department of Veterans Affairs General Rules of Eligibility website.

Second, the Idaho VA loan has to be received through a lender that has been approved by the U.S. Department of Veterans Affairs. It is important to check with lenders prior to starting to ensure that they are qualified to provide an Idaho VA mortgage.

Third, the VA will analyze your mortgage application including your payment history on your previous loan to see if you have a history of paying your mortgage on time or have gone into default at some point.

The VA loses money veteran borrowers go into default, which means they are essentially doing a cost analysis on you to decide whether or not to grant you another VA loan. In addition if the VA suffered a loss on a previous loan you will be required to repay it before having your eligibility fully restored.

If you currently have an Idaho VA mortgage, or have had one in the past, then you already know about the required VA funding fee. However, there are differences between what the funding fees are for first-time Idaho VA loan borrowers and subsequent borrowers.

For Idaho VA loans, regular military members are categorized as either a first time user or a subsequent user. For first time users the fee structure is set up as follows:

* No down payment: 2.15% fee

* Up to 10% down payment: 1.5% fee

* More than 10% down payment: 1.25% fee

For subsequent users the fee structure is:

* No down payment: 3.3% fee

* Up to 10% down payment: 1.5% fee

* More than 10% down payment: 1.25% fee

The funding fee requirement for both the Reserves and National Guard members is different than that for the regular military. For first time users, the fee structure is:

* No down payment: 2.4% fee

* Up to 10% down payment: 1.75% fee

* More than 10% down payment: 1.5% fee

For subsequent users the fee structure is:

* No down payment: 3.3% fee

* Up to 10% down payment: 1.75% fee

* More than 10% down payment: 1.5% fee

Basically, the only difference between funding fees for first-time and subsequent Idaho VA loan borrowers is for “no down payment” scenarios.

If you are planning on making a down payment on your subsequent Idaho VA loan, then there will not be any difference from what you would pay for a first-time VA mortgage.

It’s important to understand that you may not hold more than one VA loan at a time. The loan you took out previously must be repaid in full before you will be eligible to apply for a new VA mortgage. If you still own the property but it is no longer financed with a VA loan (either because you refinanced or paid off the mortgage) you may request a one-time exception to have your eligibility restored.

Even if the loan was assumed by another party, the loan must either be repaid or if the assumer is eligible for a VA loan, they could transfer their eligibility to the loan.

If you have any Questions about how to obtain an Idaho VA Home Loan please feel free to contact me. My information is below.

Michelle Guth
Diversified Mortgage Group
Mortgage Consultant
Direct: 208-853-7878
Michelle@dmgloans.com
ID MBL-5696 / NMLS # 36853 / 36852 / 1850
www.idahohomegroup.com

Can I refinance my current conventional loan into a VA Loan?

If you currently have a Idaho conventional loan, yes, you can refinance into an Idaho VA loan mortgage if you are an eligible veteran or member of the armed services.

Better yet, you may be able to save a great deal of money with a VA refinance!

Transferring from a Idaho conventional mortgage to an Idaho VA mortgage is known as a “Conventional to VA Refinance Loan,” and is a very straightforward process.

Below are some of the advantages offered by switching from a conventional mortgage to a VA mortgage:

* You may be able to lower your interest rate and your monthly payment with low VA refinance rates.

* You are not required to put any money down to get a VA loan refinance.

* Private mortgage insurance is also not required even for those borrowing more than 80% of the home’s value. Not having to pay private mortgage insurance (or PMI for short) can result in significant savings.

* You have the option of refinancing to a fixed rate mortgage to ensure that your interest rates do not fluctuate over time.

Remember, even if you can only lower your interest rate by a .5% percent you could be saving thousands of dollars over time!

Add to that the saved costs of not having to pay private mortgage insurance, and you’re truly looking at substantial savings in both the long and short run.

If you are comfortable with your current mortgage payment you could choose to pay off your loan more aggressively by selecting a shorter term for your refinance loan.

By moving from a 30 year loan term to a 20 or 15 year term you will pay off your loan years sooner, eliminating a decade or more of interest payments. In addition, interest rates for shorter term loans are often lower than 30 year term loans and will save you thousands of dollars in interest paid.

Have us run the numbers so you can see for yourself what you could save.

Frequently Asked Questions About Boise Idaho VA Home Loans :

Primary Benefits of a VA Home Loan:

• 100% financing
• No monthly private mortgage insurance is required
• There is a limitation on buyers closing costs
• The loan is assumable, subject to VA approval of the assumer’s credit
• 30 year fixed loan
• Seller can pay up to 4% of the veterans closing costs and even pay down your debt to help lower your debt-to-income ratio
• Interest rates are similar to FHA rates
• You don’t need perfect credit

If you have any Questions about how to obtain an Idaho VA Home Loan and replace your existing Idaho Conventional Home Loan please feel free to contact me. My information is below.

Michelle Guth
Diversified Mortgage Group
Mortgage Consultant
Direct: 208-853-7878
Michelle@dmgloans.com
ID MBL-5696 / NMLS # 36853 / 36852 / 1850
www.idahohomegroup.com

Boise, Idaho VA mortgage loans can be used towards purchasing a home, building a home, or refinancing an existing mortgage.

We will discuss what role the VA plays in an Boise, Idaho VA guaranteed mortgage, the benefits of an Idaho VA home loan, who is eligible for a Boise Idaho VA loan, and the documentation you will need to present to your lender in order to apply.

Did you know that more than 27 million veterans and service personnel are eligible for VA financing, yet many aren’t aware it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement?

VA Does Not Offer Loans Directly and Does Not Guaranty You Will Qualify.

The VA does not actually lend the money to you directly. They offer a guaranty to a lender that if you should default on the loan, they will pay the lender a percentage of the loan balance.

*The word GUARANTY does not actually guarantee the veteran will qualify for a VA home loan.

Primary Benefits of a VA Mortgage:

• 100% financing
• No monthly private mortgage insurance is required
• There is a limitation on buyers’ closing costs
• The loan is assumable, subject to VA approval of the assumer’s credit
• 30 year fixed loan
• Seller can pay up to 4% of the borrower’s closing costs and even pay down their debt to help lower the overall debt-to-income ratio
• Interest rates are similar to FHA rates
• You don’t need perfect credit

Frequently Asked Questions:

Q: My parent is a veteran. Can I obtain a VA loan if I have not served in the military myself?

No, the VA loan benefit does not extend to a veteran’s children.

Q: What is required to prove my record of military service?

You will be required to use Standard Form 180, Request Pertaining to Military Records, to apply for proof of military service.

Q: My spouse who has passed away was an eligible veteran.  Am I eligible for the home loan benefit myself?

A surviving spouse is eligible if they have not remarried, and the eligible veteran died during active duty service or as a result of a service-related disability.

Q: Is a VA loan better than a conventional mortgage?

In many cases, yes. VA guaranteed loans often offer a lower interest rate than conventional mortgages, they do not require monthly private mortgage insurance when borrowing more than 80% of a home’s value, and they can be easier to get approved for.

Q: How long does it take to get approved for a VA loan?

It varies depending on the current workload of your lender, but it is typically the same as for conventional mortgages – 3 weeks to 45 days.

Who is Eligible for a VA Home Loan?

Veterans with active duty service, that was not dishonorable, during World War II and later periods, are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31, 1955), and Vietnam era (August 5, 1964 to May 7, 1975) veterans must have at least 90 days of service.

Veterans with service only during peacetime periods and active duty military personnel must have had more than 180 days of active service. Veterans of enlisted service which began after September 7, 1980, or officers with service beginning after October 16,1981, must in most cases have served at least 2 years.

If you have any Questions about how to obtain an Idaho VA Home Loan please feel free to contact me. My information is below.

Michelle Guth
Diversified Mortgage Group
Mortgage Consultant
Direct: 208-853-7878
Michelle@dmgloans.com
ID MBL-5696 / NMLS # 36853 / 36852 / 1850
www.idahohomegroup.com

An Idaho VA appraisal involves a thorough inspection of the home and property to determine the current market value of the home. This appraisal is especially geared towards reporting any defects involving safety or security of the home.

So, how does this fit into the VA loan process?

Simply put, even though the VA’s primary focus in assist veterans in financing a home, the VA must also take precautions to protect the investments of both the borrower and the VA itself with a good appraisal.

Let’s say that a veteran or member of the military found a house that he wanted to purchase for $100,000. The house seems to be exactly what he’s looking for; single story, pool in the backyard, freshly painted, and located on 4 acres of land out in the countryside.

He decides that he wants to use his use his hard-earned military benefits to get a zero money down VA loan. In other words, if approved, he’ll receive a fully financed $100,000 VA loan.

As part of the standard Idaho VA loan approval process, a VA-appointed appraiser goes to the property to do an appraisal of the actual worth. Unfortunately, the appraiser discovers that the house needs a new roof, there are cracks in the pool cement, and there are severe irrigation issues throughout the property that need to be fixed, among other miscellaneous flaws.

Tallied up, the appraiser determines the value of the home and property to be $75,000 instead of $100,000.

Because of the large difference between what the seller is asking for and the actual value of the property, the VA ultimately turns down the loan.

Of course, this is a somewhat extreme example, but you get the idea. The VA needs to verify that the actual value of the home and property is close to what a potential borrower wants to pay for it. Neither a mortgage bank nor the VA want to insure homes that are worth less than the loan amount.

Here is a list of things to consider when shopping for a new home:

* The appraiser needs to inspect both the inside and the outside of the house. If the house in question is being constructed, the appraiser still needs to analyze the property and construction site.

* The official appraisal report will contain a list of “observable repairs that need to be completed.”

* This report will also contain a list of “customer preference items to be installed.”

* A few small issues with the property won’t immediately disqualify it, but a lot of small issues or a few big issues may.

Other Common Idaho VA Mortgage Questions:

Primary Benefits of an Idaho VA Home Loan:

* 100% financing
* No monthly private mortgage insurance is required
* There is a limitation on buyers closing costs
* The loan is assumable, subject to VA approval of the assumer’s credit
* 30 year fixed loan
* Seller can pay up to 4% of the veterans closing costs and even pay down your debt to help lower your debt-to-income ratio
* Interest rates are similar to FHA rates
* You don’t need perfect credit

If you have any questions about purchasing or refinancing a home with an Idaho VA loan please feel free to contact me.

Michelle Guth
Diversified Mortgage Group
Mortgage Consultant
Direct: 208-853-7878
Michelle@dmgloans.com
ID MBL-5696 / NMLS # 36853 / 36852 / 1850
www.idahohomegroup.com

Previously the monthly mortgage insurance premium was a factor of .55% of the loan amount (if the loan to value was over 95%). As of October 4, the factor has increased to .9% You are probably wondering how this affects the payment. On a $400,000 mortgage, using the old factor of .55% the monthly mortgage insurance would have been $183. Now Using the .9% monthly mortgage insurance factor we are looking at a monthly mortgage insurance payment of $300. This is an increase of $117 a month compared to the previous mortgage insurance for a $400,000 FHA mortgage. The great thing is even though the monthly mortgage insurance is higher the upfront insurance premium has decreased.

- FHA UPFRONT MORTGAGE INSURANCE PREMIUM DECREASED

The Upfront Mortgage Insurance Premium used to be 2.25%. But on October 4, 2010, they dropped it to only 1%. Using the same base loan amount as our previous example of $400,000 and using the old (UFMIP) of 2.25% $9,000 would have been added to the Idaho home buyers loan making the total loan amount $409,000. With the new upfront mortgage insurance premium of 1% we would have a total loan amount of $404,000.

- IDAHO FIRST TIME HOME BUYERS FHA IS STILL YOUR BEST OPTION

FHA mortgages are still the best option for first time home buyers looking to purchase in Idaho. While conventional fannie and freddie guidelines continue to be very tight FHA is still fairly flexible. FHA allows for lower fico (credit scores) as well as as little as 3.5% down payment. FHA also has more of a “makes sense” underwriting philosophy. Many Idaho home buyers are finding FHA to be the best choice even if they have quite a bit of money to put down.

If you have questions about an Idaho FHA mortgage whether you are purchasing or refinancing a home feel free to contact me.

Want to find out more about FHA mortgage insurance changes, then visit Michelle Guth’s site to learn more about Idaho FHA Mortgage Insurance Changes.

Michelle Guth
Diversified Mortgage Group
Mortgage Consultant
Direct: 208-853-7878
Michelle@dmgloans.com
ID MBL-5696 / NMLS # 36853 / 36852 / 1850
www.idahohomegroup.com

Refinance your Idaho Mortgage now before interest rates go back up!!!!!!  An Idaho Refinance is what many people need to look into right now with where interest rates are at. Interest rates won’t stay this amazingly low for long so act now !!!! Below I have outlined four main reasons why you should do an Idaho refinance.

An Idaho mortgage is generally the largest debt most homeowners have to manage.  It’s a good idea to give your personal real estate finance portfolio a check-up at least once a year.

Since there are many reasons a homeowner may choose an Idaho refinance , we’ll take a look at the four most common.

1.  Mortgage Rates Drop:

Typically, the most common reason that homeowners do an Idaho refi is to secure a lower interest rate. Rate and loan amount determines the total cost that a borrower will pay.

The lower the interest rate, the less the overall cost will be. Interest is calculated on a daily basis and usually paid back to the lender on a monthly basis.

2.  Lower Payments:

Lowering a mortgage payment can be achieved by doing an Idaho refinance and lowering the mortgage rate, lengthening the loan term, combining two or more loans or removing mortgage insurance.

3.  New Mortgage Program:

An Adjustable Rate Mortgage (ARM) to a new Fixed Rate Mortgage (FRM), combining a first and second mortgage or paying off a balloon loan are three possible reasons to explore an Idaho refi.

4.  Debt Consolidation:

If there is sufficient equity, sometimes paying off consumer debt by combining all debts into one lower monthly mortgage payment can significantly reduce the short-term deficits in a budget.  However, it’s important to keep in mind the total cost of that debt by adding it into a 30 year mortgage payment.

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Frequently Asked Questions:

Q:  Do I have to do an Idaho Refinance with my current mortgage company?

No, you may choose any company to do an idaho refi on your home loan since the new loan will replace the existing mortgage.

Q:  Is it easier to do a loan with my current mortgage company?

It is possible your current loan company may require less documentation, but this could add additional cost or a higher interest rate. Do your homework and shop around to make sure you’re getting the best deal.

Q:  Will I automatically qualify if I’ve never made any late payments?

No, you will have to qualify for your new home loan. However, certain programs will allow for reduced documentation like a FHA to FHA Streamline loan

If you have questions about whether or not it would be a good idea or not to do a refi feel free to contact me to go over your options.

Michelle Guth
Diversified Mortgage Group
Mortgage Consultant
Direct: 208-853-7878
Michelle@dmgloans.com
ID MBL-5696 / NMLS # 36853 / 36852 / 1850
www.idahohomegroup.com

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Related Article – Refinance Process:

• Idaho Refinance Process Overview
• Mortgage Approval Process
• Calculating The Net Benefit Of A Idaho Refinance
• Should I Idaho Refinance Or Get A Home Equity Loan To Make Improvements?
• What Do Appraisers Look For When Determining A Property’s Value?
• Understanding The Difference Between Appraised Value vs Neighborhood Listing Comps
• Five Myths About Home Values