Jay Sondhi

How to refinance your property with little or no equity
April 25, 2011 · · 1 Comment

I’ve recently taken an application for a veteran who will be refinancing their two purchase loans from a couple years back.  She will be saving about $700 per month with her new 30 year fixed rate of 4.75%.  It reminded me that there are still a lot of folks out there who may not have taken advantage of the low rates available because they thought there was not enough equity in their property to refinance.  Without getting into too much detail, I thought I would share three great options to consider if this is the case for you:
Freddie/Fannie option
If Freddie Mac or Fannie Mae own your mortgage, it may be possible to refinance your current loan even if it’s underwater.  Have you checked to see if your loan is Freddie/Fannie?  Here are the links. 

Click here to see if Fannie Mae owns your mortgage
Click here to see if Freddie Mac owns your mortgage

FHA
FHA will insure mortgages up to 97.75% of the home value.  The maximum loan amount is $729,750 here in San Francisco County.  This loan limit is slated to be decreased at the end of 2011.

VA
If you or your spouse is a veteran, you can borrow up to 100% of your home value.  This is a great option for veterans because mortgage insurance is not required for VA loans.  The current VA loan limit for San Franciso and San Mateo County is $1,000,000.

Jay Sondhi
http://www.jaysondhi.com/ 

Dean Rizzi

VA Loan Questions and Answers
April 5, 2009 · · 4 Comments

Can I get a VA loan if I have had a bankruptcy in the last few years?
VA credit standards state that a veteran with a bankruptcy less than 3 years ago would generally not be considered a satisfactory credit risk unless: the veteran or spouse has obtained items on credit since the bankruptcy and has paid the obligations in a satisfactory manner for a continued period; and the bankruptcy was caused by circumstances beyond the control of the borrower, which would have to be verified. A bankruptcy discharged 3 to 5 years ago must be given some consideration in the underwriting of the loan. A bankruptcy discharged more than 5 years ago may be disregarded. These are the minimum standards that mortgage companies must follow when making a VA loan. In 95% of the cases, companies make the decision to approve a loan without VA’s prior approval. Keep in mind that mortgage companies also have money at risk in giving you a VA loan, so they may have stricter credit standards than those mandated by VA. 

How large of a loan can I get? If my guaranty entitlement is $36,000, does this mean I am limited to a $36,000 loan?  Read more

Dean Rizzi

VA loans experience a revival. Why?
December 15, 2008 · · 6 Comments

There has been a surge in VA pre approvals over the past few months.  The main reason for this increase is the availability of ZERO down financing with the VA and the fact that it comes with no monthly mortgage insurance premiums.   It is virtually the only loan product left that will allow no money down.  Below is some information on VA loans.

Advantages of VA Financing

  • No down payment is required for veterans with full entitlement on real estate purchases up to $729,000.
  • Liberal underwriting criteria.
  • Fully assumable.
  • No prepayment penalties.
  • Fixed rates & adjustable rates available.
  • All funds used may be gifted from a relative.  

Read more