My husband is active duty and we are planning on purchasing a home and wanted to know if anyone had more information on how tha VA laon works as well as any info on Countrywide Bank....

Thanks

VA loans are pretty simple. they allow financing up to 100% with no PMI. VA loans have a funding fee of up to 3% of the purchase price. ex. on 100k home the funding fee alone would be up to 3K. not money well spent. this will all depend on your situation. any down payment, strength of credit ...etc.

i tend to use FANNIE MAE FLEX 100 PROGRAM(NO FUNDING FEE)...but does have PMI. as well as there a host of ALT-A lenders will to do 100% financing with no pmi at decent rates.

countrywide isnt a bad start. also get a referral for a BROKER in your area.


good luck
Jim

Thanks for the info....

FNMA Flex has expensive MI. You should look into your high LTV options and do a scenario for all your lenders to see what is the best option. It is worth it if you do a good amount of purchase loans.

If you can qualify for it, an 80/20 loan would eliminate PMI and comes without a funding fee.

Whaaaatt!!??!?! Countrywide is HORRIBLE! They can't even come close to competing with Interfirst, GMAC, WAMU, Provident, Taylor Bean Whittaker, BU, Accredited, National City, MIT, Citi, the list goes on and on....The afore mentioned are all wholesale.

Countrywide spends far to much on advertising to remain competetive.

VA Loan Closing Cost Requirements


ALLOWABLE CLOSING COSTS

1. Discount Points (Purchase or Refinance)
2. Loan Origination Fee (1% Max)
3. Appraisal Fee
4. Credit Report Fee
5. Title Insurance Fees
6. Recording Fees
7. Compliance Inspections
8. VA Funding Fee (May be Financed)
9. Pre-Paid Interest
10. Tax and Insurance Impounds

COSTS THAT A VETERAN MAY NOT PAY (Must be Paid by the Seller on a Purchase or by the Lender/Broker on a Refinance)

1. Escrow Fee or Sub-Escrow Fee
2. Administrative Fees
3. Document Preparation Fee
4. Underwriting Review Fee
5. Processing Fee
6. Wire Fee
7. Tax Service Fee
8. Notary Fee
9. City Transfer Taxes or Tax Stamp Fee

SPECIAL NOTES

• The Seller may pay ALL of the Veteran's Fees including both Non-Recurring and Recurring Closing Costs
• All of the Borrower's down payment and closing costs may be a gift from a relative.
• Seller concessions are limited to 4% of appraised value (not including closing costs.)

AZ Lender is right on the money. Countrywide is horrible. They are nowhere near competitive on rate and costs and you will likely get a loan officer fresh out of some other industry. Find a reputable mortgage broker in your area. I have originated a couple of dozen VA Loans. They are easy once you have done a few. But there are some things to navigate. The appraiser is picked by the lender and sometimes won't have a knowledge of the area. You will need a termite inspection (Wood Destroying Organism) which you wouldn't be required to have for a conventional loan. There are many conventional programs that are in place to compete with VA loans and it is prudent to weigh the costs and final mortgage payment between them when deciding which program best suits your needs

The CEO of Countrywide made over 100 million last year in salary, bonuses, and stock options. Who do you think pays for that? I wish all i ever competed against was Countrywide.

I boycotted them (Countrywide wholesale) a long time ago. The only thing they have that's half way decent is their Tax Advantage Option ARM.

US BANK does the same thing just better.

oh really? I did not know that. Thanks for the info.

US Bank does not offer Option ARM's anylonger. ABC has a LPMI Option ARM with a start rate of 1.625% MI included in rate, 4.75% Qualifying Rate (normally this would be the index + margin). If it's a full doc to 95% LTV and FICO over 680, back end ratio 45% or under on a second home, purchase, they are paying 3.25% on the back.