From Realtor.com 9/2/16

Veterans, service members, and their families believe in homeownership. In fact, the homeownership rate among veterans far outpaces that of civilians.
But the financial toll of military service can make it tough for some veterans to get a financial foothold, let alone land a home loan.
The good news is those who serve have access to a host of home-buying benefits and protections, from what’s arguably the most powerful home loan on the market to financial safeguards and more.
Let’s take a closer look.
VA loan program
Since the VA loan program’s inception in 1944, the Department of Veterans Affairs has backed more than 21 million loans for veterans, active-duty military members, and their spouses. This program has made buying a home more accessible to those who most deserve the American dream they helped build and protect.
VA loans feature many benefits that help make home buying possible, including the following:

• No down payment requirement
• No mortgage insurance
• Lower average interest rates
• Limits on closing costs
• More lenient credit requirements

 
VA home loans have boomed in recent years, attracting many veterans and military members who may not qualify for conventional loans, which have stricter credit requirements.
Still, many eligible buyers are unaware of the benefits of VA home loans and the protections they offer. Some buyers also make the mistake of assuming a government-backed loan comes with endless red tape and miss an opportunity to benefit.
Typically, veterans and active-duty service members are eligible for a VA home loan if they served in the following capacity:

• 90 consecutive days on active duty during wartime
• 181 consecutive days on active duty during peacetime
• 6 or more years in the National Guard or Reserves
  

Talk with a VA lender about obtaining your Certificate of Eligibility and getting a sense of your purchasing power.
Occupancy & power of attorney
 
VA loans are focused on getting buyers into homes they’ll live in full time. But the program makes exceptions for some veterans and active-duty service members.
 
For example, a spouse or children may be able to fulfill the occupancy requirement on behalf of a VA buyer. Also, a VA buyer who is deployed or otherwise unable to manage the loan process can typically assign a power of attorney to a spouse or family member to manage the loan process and sign documents.
 
There are two types of power of attorney: general and specific. The type needed depends in part on what loan-related documents the VA buyer can sign.
 
The occupancy and power of attorney options mean an eligible VA buyer’s spouse and children could buy a home during a deployment or unaccompanied assignment, helping alleviate the emotional toll of multiple moves on military families.
Basic allowance for housing
 
Many active-duty military members who receive a monthly housing allowance are surprised to learn that they can use this money to qualify for a home loan. Lenders can count Basic Allowance for Housing (BAH) as effective income. That can help service members make the leap from renting to owning, especially in higher-cost areas.
 
BAH is based on several factors, including the location of your duty station, your pay grade, and your family size. The housing allowance can change on an annual basis. To calculate your BAH, refer to the BAH calculator on the Defense Department’s website.
Financial protections
 
Even after becoming homeowners, active-duty service members can face unique financial challenges. Deployment and changes of station can strain a family emotionally and financially.
 
The Servicemembers Civil Relief Act (SCRA) provides active-duty military personnel and their families financial protection involving interest rates, income tax payments, eviction, foreclosure, and more.
 
For example, military personnel can ask creditors—including their mortgage lender—to cap their interest rate at 6% during their term of service. The SCRA also forces lenders and servicers to seek a court order to foreclose on active-duty military members during their time of service and up to nine months afterward.
 
Veterans Affairs also offers foreclosure avoidance protection assistance for homeowners. The VA has a team of experts who work with lenders and servicers on behalf of struggling homeowners to find alternatives to foreclosure. Their efforts have helped nearly 500,000 veterans and service members avoid foreclosure in the past six years alone.
 
Check with your local Armed Forces Legal Assistance office for more information regarding the Servicemembers Civil Relief Act. VA homeowners in jeopardy of defaulting on their mortgage can contact the VA loan program at 877-827-3702.
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This article was written by Chris Birk, director of education at Veterans United Home Loans and author of “The Book on VA Loans: An Essential Guide to Maximizing Your Home Loan Benefits.”
 
NMLS 1907 (www.nmlsconsumeraccess.org) Veterans United Home Loans is not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency; does not reflect DOD endorsements. Equal Opportunity Lender. 1400 Veterans United Drive Columbia MO, 65203.
 
Some spouses of military members who died in the line of duty or of a service-related disability may also be eligible for a VA loan.
 

Now that our watches are our phones, and desk-top computers and their friend the printer are being used less and less, I’d like to make a case for keeping the printer.

I had a relocations’ final move the other day going about 240 miles with an almost next day delivery (which most people like).  The Client received a phone and e-mail confirmation of an 8am sharp delivery. Now, when anyone moves, they get a little “Brain Blur” from the hundreds of activities needed to be complete before this final day can come.  Sometimes just seeing an important date/time 2 fleeting times is not enough.   Mover is at destination and Client is 5 hours away.

I recommend printing any important TODO dates and as a reminder placing the reminder somewhere where you will see it a few times like the fridge or at the front door.  You can also just make sure it is in Outlook several times or set your phone alarm to the time you will have to leave for the appointment.  It is cave-man planning but it works.   Do this because there IS just too much going on during a relocation to remember everything.

All turned out well for the moving Client as they were able to have a relative meet the truck however it could have been very costly to them if the mover had to wait a long time.

Hello my friends.
 
This week I wanted to clarify some of the updates we have been receiving about how to consider Student Loans.  Most of this we have actually been applying for a while, but some, especially the FHA info is relatively new.  All agree that deferred student loans will be counted against ratios and no longer overlooked based on when the payments come due.
 
 
FHA:
Regardless of the payment status, the Mortgagee must use either:
The greater of:
1 percent of the outstanding balance on the loan; or
The monthly payment reported on the Borrower’s credit report; or
the actual documented payment, provided the payment will fully amortize the loan over its term.
 
USDA:
Lenders must include the greater of one percent of the outstanding loan balance or the verified fixed payment as reflected on the credit report.
Exception: Monthly payment amounts listed on the credit report, which are less than one percent of the outstanding balance may be used when evidence from the loan servicer is obtained indicating;
1)the applicant is on a fixed repayment plan not subject to change under the terms of the current agreement
And
2) and the monthly payment amount due.
Fixed payments have a monthly amount that is not subject to change through the fixed repayment time frame. Income Based Repayment (IBR) plans, graduated plans, adjustable rates, interest only and deferred plans are examples
of repayment plans that are subject to change and do not qualify for the exception.  No additional documentation is required if a credit report is obtained and the lender can confirm the payment represented is a fixed payment as noted in this paragraph.
 
FREDDIE MAC:
When a monthly payment on an installment debt is not reported on the credit report or is listed as deferred, the Seller must obtain documentation verifying the monthly payment amount included in the monthly debt payment-to-income ratio. If no monthly payment is reported on a student loan that is deferred or is in forbearance, and there is no documentation in the Mortgage file indicating the proposed monthly payment amount (e.g., the loan verification letter), 1% of the outstanding balance will be considered to be the monthly amount for qualifying purposes.
Examples of documentation of the required payment amount include:
■ A direct verification obtained from the creditor
■ A copy of the installment loan agreement obtained from the Borrower, or
■ If payments are currently deferred, the payment amount that will be required once the deferment or forbearance period has ended, as stated in a copy of a financial institution’s student loan certification or the installment loan agreement
 
FANNIE MAE:
For all student loans, whether deferred, in forbearance, or in repayment (not deferred), the lender must use the greater of the following to determine the monthly payment to be used as the borrower’s recurring monthly debt obligation:
∙ 1% of the outstanding balance; or
∙ the actual documented payment (documented in the credit report, in documentation obtained from the student loan lender, or in documentation supplied by the borrower).
 
If the payment currently being made cannot be documented or verified, 1% of the outstanding balance must be used.
 
Exception: If the actual documented payment is less than 1% of the outstanding balance and it will fully amortize the loan with no payment adjustments, the lender may use the lower, fully amortizing monthly payment to qualify the borrower
 
Questions on how all this relates to you or your children?  Feel free to call/email me, Dennis, at 703.928.4428  [email protected] or Rob Suling at Presidential Bank Mortgage, 703-966-9960.