Hmmm... VA (State or Federal) or USDA Guaranteed Rural Housing to Buy Your Home?

Honored to have the opportunity to serve several veterans this week, grateful for the opportunity to help them now in return for their service and sacrifice for our country, I had the opportunity to show the comparisions between some fabulous government loan programs.

Using one's VA benefit to purchase a home can be a great tool! Here are some of the highlights of these programs, and how we may use them to purchase a home in our Southern Oregon real estate markets.

Federal VA programs - With no down payment required, this is a great tool for eligible veterans wanting to use their benefit to purchase their first home. With great 30 year fixed rate and requirements closing costs stay within certain boundaries, it is an affordable way for eligible veterans to buy a home. Since you are paying an upfront funding fee which may be financed (with no down payment, funding fees are 2.15-2.4% first time use, 3.3% subsequent use, or none if eligible for a waiver) there is no ongoing monthly mortgage insurance costs like we have on FHA home loans.

State VA program - Oregon offers some great interest rates to their eligible veterans. This program is underwritten to conventional guidelines, so even though there is no funding fee, private mortage insurance guidelines which have become very restrictive with expensive premiums come in to play unless a veteran makes a 20%+ down payment.

USDA Guaranteed Rural Housing - No down payment is required, but the veteran will need to meet very reasonable income guidelines that are not in play on the Federal VA or State VA programs, and must buy in an eligible rural area. This covers most areas outside of Medford, Central Point and Grants Pass. Like the Federal VA program, there is no ongoing monthly mortgage insurance premiums, only a one-time upfront guarantee fee of 2% which may be financed.

Veterans may be eligible for the $8,000 first time home buyer tax credit if they close their eligible transaction by November 30, 2009. And, they may also be eligible for the Neighborhood Stabilization Program to use in conjunction with one of the above great home loan programs.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Qaulity4Loans.com