VA Jumbo Loans: Over the last few years, the VA (specifically The Veterans Benefits Act of 
2004) increased the maximum guarantee amount to $104,250 or 25% of the Freddie Mac conforming loan limit. This allows Veterans to obtain 100% financing up to $417,000, and even more in select high cost areas. The VA also offers financing with low down payments in all areas on loan amounts over $417,000 with Jumbo VA loans. The big question is, how does one calculate the down payment for VA loans over $417,000 in non-high cost areas? Here is how(I hope you enjoyed word problems back in Junior High Math):
To Calculate the down payment for VA Jumbo Loans Take the purchase price, which for example purposes is $600,000. Subtract the maximum VA Guarantee amount of $417,000. In this case, $600,000-$417,000 = $183,000. The Veteran is required to make a down payment of 25% of the amount above the VA Guarantee(in this case $417,000). $183,000 x .25 = $45,750 downpayment, or just over 7.5%.
On a $500,000 purchase price with everything else being the same, $500,000 -$417,000 =$83,000. $83,000 x .25 = $20,750 Downpayment, or just over a 4% down payment. Not bad for VA Jumbo Loans.
Recently, my company put up a website dedicated to provided information to veterans regarding the VA Mortgage Loan, as well as VA Jumbo loans. The site is here. Hopefully this will help veterans understand how to utilize their VA Certificate of Eligibility to purchase their first home, refinance their existing loan, as well as how to utilize one's VA benefits for a second time.
The site is a work in progress, and any feedback is appreciated. Once again the site is listed at www.vamortgageassistance.com .
Michael Byrne
The website www.federalhousingtaxcredit.com has some excellent and concise information on who qualifies for The Housing Assistance Act of 2008's $7500 tax credit. It also should be noted that the tax credit is essentially a $7500 interest-free loan that is to be repaid over 15 years.
There are 3 basic criteria that need to be met which are:
•1. Being a "First-Time Homebuyer", which means you (or your spouse) have not owned a principal residence in the last 3 years.
•2. Purchase Date: Purchase Date is defined by the date in which the owner first occupies the home. The dates of first occupancy are on or after April 9th 2008, and must be occupied prior to July 1st, 2009.
•3. Income: Modified adjusted gross income(MAGI) as defined by the IRS for the maximum $7500 credit is $75,000 for individuals and $150,000 for married couples. Incomes of up to $95,000 for individuals and $170,000 for married couples qualify for (very)partial credits.
For further information on the tax credit be sure to go to the website www.federalhousingtaxcredit.com for further details.
If you are considering purchasing your first home, with rates low and inventory high, now may be the perfect time! Remember, FHA Loans , VA Loans , and USDA Loans are available to help first time buyers.
Michael Byrne
Despite the contraction of the secondary market, there are still some great loan programs for qualified Somerset County, NJ properties available to qualified applicants with moderate income and little to no down payment. One such program is the USDA loan. As I had written previously in this blog: Need 100% Financing? Try the USDA Guaranteed Rural Housing Loan Program the USDA program is a great loan for rural and even some not-so-rural areas that qualify for the USDA program. New Jersey still has many areas that qualify for the RD Loan.
If you have a listing or are selling your home and it qualifies location-wise for an RD loan, this also can be a great tool to market a property.
There are property location restrictions for the USDA 100% financing program. According to USDA website's eligibility map listed here: Much of Northern and Southern Somerset County is Eligible Check the website and with a loan officer for further details. Keep in mind, both the property(based on location) and the borrower(based on income) need to qualify to be eligible for consideration for this loan program.
The other qualification restriction is income based. The income limits for the 100% Section 502 Guaranteed Rural Housing Program are listed here: Somerset County Income Limits According to the chart, a family of 2's maximum annual income would be $71,900 for the Section 502 Guaranteed Rural Housing Program.
There is a financed fee similar to the VA funding fee for this program, and there are credit qualifications and property qualifications as well.
Once again, this a great program for 100% financing in Somerset County. For more details, contact Michael Byrne at 800-999-2489 x7972
Michael Byrne
Gateway Funding
Despite the contraction of the secondary market, there are still some great loan programs available to qualified applicants with moderate income, and little to no down payment. One such program is the USDA loan. As I had written previously in this blog: Need 100% Financing? Try the USDA Guaranteed Rural Housing Loan Program the USDA program is a great loan for rural and even some not-so-rural areas that qualify for the USDA program. New Jersey still has many areas that qualify for the RD Loan.
There are property location restrictions for the USDA 100% financing program. According to USDA website's eligibility map listed here: Much of north and western Morris County qualifies for the program. Check the website and with a loan officer for further details.
The other qualification restriction is income based. The income limits for the 100% loan program are listed here: Income Eligibility Test According to the chart, a family of 2's maximum annual income would be $70,700 for the guaranteed housing program.
There is a financed fee similar to the VA funding fee for this program, and there are credit qualifications and property qualifications as well.
Once again, this a great program for 100% financing in Morris County. For more details, contact Michael Byrne at 800-999-2489 x7972
Michael Byrne
Gateway Funding
Loan Counselor with 15 years experience. Doing business in over 40 states. Vast knowledge of FHA, Investor Financing, and automated underwriting. I pride myself as a problem solver.
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