VA Loan / Veteran Mortgage News
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FEBRUARY 2009
Five Years Ago Today:
Low Rates Keep Helping American Veteran Consumers
This was the headline in our February 2003 newsletter. It said, "America's economy currently is expanding slowly, which should keep mortgage rates low for the immediate future. Rates have dropped tremendously in recent years. Today, American veteran consumers are receiving some of the best financing values in almost four decades when they buy or refinance a home. Check with us soon - today's low rates may help you achieve some goals you didn't think were possible just a few months ago!"
New Tax Credit for Homebuyers
A recently-enacted homebuyer tax credit worth up to $8,000 makes it easier to make a smart move. First-time buyers now can cut their income tax bill by as much as $8,000, if they purchase by November 30. Low rates make the current buying situation even more compelling. Rates now offer some of the best buying opportunities seen in a generation.
Home sellers also are eager for offers, and are willing to make concessions to qualified buyers. Talk with us before you look at properties, so you can assure sellers that getting a loan won't be an issue holding up a transaction. Knowing you have affordable payments provides peace of mind when purchasing, as well. We'll work on your behalf to locate financing which fits your budget.
Today buyers are finding that reduced energy costs are providing them with more funds which they can devote to housing. Inflation dropped to its slowest pace in half a century during 2008. America's Consumer Price Index went up just 0.1 percent last year - the mildest rise since 1954, notes the Labor Department. Gasoline and food prices fell during 2008. Towards the end of the year the cost of clothing, vehicles, and recreation also went down. Many economists forecast even-lower prices on common goods in coming months.
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Housing demand is expected to pick up later this year, since lower monthly payments make it easier to purchase real estate. We still consider homeownership to be a smart long-term move. A national survey shows that Americans who bought a house last year on average plan on staying in it for a decade.
Living in a great home is the first step towards larger lifetime goals. Having the right mortgage also increases the enjoyment you'll obtain from owning your home.
With our help, you may find that getting a home loan now is easier than you thought it would be. We can go over several borrowing options to determine which loan type will work best for you.
Contact us soon to go over how these recent changes can benefit you. We'll help you make the most of today's developments!
Top 10 Reasons Why VA Financing is a Good Deal for Veterans
There are more than 24.5 million armed forces veterans in the U.S. today, many of who qualify for attractive home financing programs guaranteed by the Department of Veterans Affairs. Most popular online mortgage companies do not address VA loans at all. At VALoans.com, we specialize in them, offering in one place all the expertise every veteran needs to secure VA financing via the Internet. Before arranging for a new mortgage to finance a home purchase with other types of loans, veterans should consider some of the advantages of VA home loans.
- Most important consideration, no down payment is required in most cases.
- Loan maximum may be up to 100 percent of the VA-established reasonable value of the property. Due to secondary market requirements, however, loans generally may not exceed $417,000 unless in high cost counties.
- Flexibility of negotiating interest rates with the lender.
- No monthly mortgage insurance premium to pay.
- Limitation on buyer's closing costs.
- An appraisal which informs the buyer of property value.
- Thirty and fifteen year loans.
- An assumable mortgage, subject to VA approval of the assumer's credit.
- Right to prepay loan without penalty.
- VA performs personal loan servicing and offers financial counseling to help veterans avoid losing their homes during temporary financial difficulties.
Home Affordability Rises
Lower mortgage rates are making it easier for buyers to afford home payments, states the National Association of Realtors. Affordability has risen rapidly over the past two years, and now is at the same level it was ten years ago. Prospective buyers who looked at houses last year should do so again, since conditions have changed in recent months. Talk with us before you begin touring homes, however. We'll go over today's loan options with you, and help you pick the type of financing which best fits your circumstances. Additionally, we'll let you know how much you can borrow so you'll know the price range you should be looking for in houses.
Today's lending conditions are unique. Fixed-rate loans often provide lower payments than a new adjustable-rate mortgage does now.
Paying points to buy down your interest rate also can have a greater positive effect than it has in the past. Understanding the opportunities and pitfalls in today's market allows you to proceed with confidence, knowing that your results will be positive.
Low mortgage rates, attractive home prices, and tax benefits make a compelling case to consider purchasing soon.
Cut Your Taxes
Keeping records of the cost of your improvements can help you avoid taxes when you sell your home. What you spend on improvements increases the tax basis of your property, which is used to determine your sale profits.
Improvements are defined as projects which increase the value of your home and prolong its life. They're different from routine maintenance costs, which can't be used to boost your home's basis.
Repairing a fence, fixing gutters, or trimming a tree are examples of maintenance. But replacing a roof or installing a new fence would be considered improvements, since they prolong your home's useful life.
Planning a project thoroughly before you start helps you control costs while gaining the benefits you want. Doing some of the work yourself also means you'll spend less while upgrading your home.
Builders Adjust to Buyer Needs
For the first time ever the size of new houses is decreasing, reports the National Association of Home Builders. Additionally, builders are producing more lower-priced houses, and homes which can fit on smaller lots in urban areas. Big houses which are expensive to heat and cool are less attractive to consumers. Today buyers are looking at how comfortable and affordable a home will be as they live in it, rather than estimating whether they can sell profitably after a short period. Often large houses were built away from commercial areas, and gave their owners lengthy commutes, as well.
New energy-saving features reduce costs for homeowners. Geothermal heat pumps rely on the earth's constant 55 degrees to warm the house in the winter and cool it during summer months. Small wind turbines and solar panels on the roof also can produce electricity.
Homeowners who increase their property's energy efficiency can reduce the cost of those improvements with the help of new tax benefits. Consult your tax advisor for details on tax credits for owners who make energy-saving renovations. And contact us to obtain funds in order to make your house greener.
Your First Home
First-time homebuyers are in a particularly good spot today. Since they don't have a house which they must first sell, they're free to find the home they want and make an offer on it. Real estate prices will continue drifting lower in some areas, but over time house values should go up. One reason is that home builders aren't producing many new houses today, yet America's population continues rising. New households need a place to live - and that demand will find an inadequate supply of new homes in the near future. Healthy demand for homes will cause prices to increase on existing properties as a result. Contact us soon to go over ways you can achieve your homeownership goals now. We'll help you gain financing which will remain affordable as long as you live in your house.
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