About Minneapolis' Longfellow

One of my favorite spots to visit in Minneapolis is Minnehaha Falls. A few weeks ago, I took the camera out on a cloudy day and was able to capture this silky effect of the waterfall.

Minimum Credit Standards for VA Financing

While the Veterans' Administration does not set a minimum credit score standard for VA Home Loans, the mortgage industry does. In the wake of the subprime meltdown, many of the secondary market mortgage investors (companies that buy bundles of mortgages) have tightened credit criteria.

The minimum credit standard for lending on VA Home Mortgages is set at a minimum credit score of 580. Credit Rescoring products are available to permanently increase credit scores. Ask your Loan Originator for more information.

Other criteria than just credit score are also considered in underwriting. A minimum of no more than 1 late on any credit, revolving debt and installment debt, including mortgages, is allowable according to most guidelines.

A Bankruptcy does not necessarily preclude VA Home Mortgage financing. In the case of a Chapter 7 Bankruptcy, a minimum of 1 year from discharge must elapse. However, cases with less than 2 years from discharge require the presence of an extenuating circumstance, such as loss of job due to medical reasons, for example. A Chapter 13 bankruptcy is allowable as long as 1 year from filing has elapsed and all payments have been made on a timely basis to the bankruptcy trustee.

Of lesser importance are medical bills, generally considered to be outside of the borrower's ability to control, and having far less negative impact on overall credit underwriting. In some cases, when medical bills are large, they may be required to be paid off with the proceeds of the loan.

Maximum VA Home Mortgage Limits for Minnesota counties

The new maximum loan limits for Minnesota are available now as a result of recently enacted VA benefits. The previous loan limits on VA loans was $144,000. However, loan limits in all Minnesota counties, are now $417,000.

More information on loan limits can be found at:

http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf

VA Has Increased Maximum Loan-To-Value and Increased Loan Sizes

It's a one, two punch designed to knock out foreclosures! The VA has increased both the maximum Loan-To-Value limits and maximum loan sizes on home mortgages.

First, the maximum Loan-To-Value limit has been raised from 90 percent to 100 percent. That means eligible Veterans and Military Spouses can tap into all of the equity in their home. The VA Funding Fee will go on top of the mortgage so the actual Loan-To-Value will be something more like 102%.

Second, the maximum VA home mortgage limit was increased from $144,000 up to $729,750 (even higher for AK, HI and Virgin Islands) in some areas.

Congress passed these two new benefits in the Veterans' Benefits Improvement Act of 2008 in October. These new benefits combine to make it possible for more Veteran home owners in subprime loans refinance to a new, lower interest rate, less risky, VA home mortgage.

The ability to access 100 percent of your home's equity is a new benefit for Veterans. It comes as a result of the Veterans' Benefits Improvement Act of 2008. Previously, a cash out VA refinance mortgage was limited to 90 percent of your home's equity. This mortgage is allowable for Veterans and Military Spouses who are currently in a conventional home loan and wish to access 100% of their home's equity.

Q: Who is eligible for a VA 100 percent Cash Out Refinance?

A: Veterans and Military Spouses who are currently in a conventional or subprime mortgage

Q: What is the purpose of a VA 100 percent Cash Out Refinance?

A: To enable Veterans and Military Spouses the ability to access 100% of their home's equity. To obtain low fixed rate financing and refinance out of a subprime loan to a safer, more affordable home loan