Episode 007 1995 - 96 Season
| Selecting a Roofing Contractor | Composition Shingles | Steel Shingles | Cleaning Roof Vent Stack | Adding Attic Insulation | Home Furnishings (design) | VA Loans | |
To order a Video Tape, call 1-800-TO-BUILD and ask for Episode #007.
Michael Holigan : Today we're going to talk about one of the best loan programs available, and that's because it's a zero down payment program - that's no money out of pocket, and that's a VA loan, Department of Veteran Affairs. It's got a lot of advantages, biggest one being zero down payment. One, ratio. That's an expanded back ratio of 41 percent. What does that really mean? It means you can afford a lot of house. That's a great ratio. Two, seller paid closing costs. You have no down payment, but you do have closing costs, but the seller's allowed to pay that, person who lives in the home if it's a used home, or the builder if it's a brand new home. Same with the pre-paids. No down payment, but there are pre-pays, but the seller can pay that for you. So you can move in for zero down payment, zero pre-pay, zero closing costs. Loan amounts - very high, $203,000. That's a lot of house no matter where you're buying. It's a great deal. Can be used more than once. You can keep your VA eligibility if you sell the last house that you were in or roll that eligibility on to the next one. It doesn't work of they assume it. Only if you sell it. Attractive adjustable rate mortgage loans, just like the FHA. A cap of one percent a year, five percent over the life of the loan, great adjustable rate mortgage loan. Seller allowed to pay four percent to contributions, plus closing costs. The closing cost, the seller can pay all of that. Your builder can pay all of that if it's a new home, but they can also contribute four percent towards all those other costs. Also buy you down a better interest rate. It's a great deal. Disadvantages - again, we're with the government. Now, FHA, they help insure the loan. VA, they help guarantee the loan, so there's going to be more paper work because the government is involved. Must be eligible. What do you have to do to be eligible? You have to have been or be in the military, so there are some down payments, that's actually working with the government because you have to be in the military or have been in the military. VA funding fee - now this is somewhat like mortgage insurance. Now this is normally two to three percent, but that can actually be rolled into the loan. You don't have to come up out of pocket with that, so you can still move in for zero down payment, zero pre-paids, zero closing cost if the seller's going to pick up that expense. It's a great loan. If you're a veteran, it's the best loan. Check it out.
Episode 007 1995 - 96 Season
| Selecting a Roofing Contractor | Composition Shingles | Steel Shingles | Cleaning Roof Vent Stack | Adding Attic Insulation | Home Furnishings (design) | VA Loans | |
To order a Video Tape, call 1-800-TO-BUILD and ask for Episode #007.