| There are several mortgage-financing options for | | | | his income. |
| veterans. The last thing you need to worry about is | | | | If applying for a conventional of FHA loan here is, a |
| who to trust when it comes to making one of the | | | | checklist of items that loan officer is going to need to |
| biggest decisions in your financial life. Veterans can go | | | | get you approved: |
| conventional, FHA, or they can apply for a VA loan. | | | | Copies of driver's license and social security card |
| Here is a brief description of the different programs | | | | 1 month recent pay stubs |
| available. | | | | 2 months recent bank statements |
| Conventional - Most conventional loans go directly | | | | 2006 and 2007 W2's and tax returnsmost recent |
| through Fannie Mae or Freddie Mac. The borrowers | | | | statement of 401K, IRA, CD's |
| for these loans usually have to have good credit. | | | | VA loans - VA loans are 100% financing loans with no |
| Loans are available to 100% and the seller can | | | | mortgage insurance. The veteran pays an upfront |
| contribute up to 3% closing costs. Generally, these | | | | mortgage insurance premium, which like FHA rolls into |
| types of loans have mortgage insurance. The | | | | the loan amount. If the veteran is on disability or has |
| mortgage insurance is typically tax deductible; to be | | | | sustained any injuries during active duty this upfront |
| certain it is best to contact your tax advisor. These | | | | mortgage insurance fees may not be applicable. VA |
| loans vary from state to state. The maximum loan | | | | loans are assumable. To be eligible for a VA loan the |
| amount for a conforming conventional loan is $417,000. | | | | borrower must have the ability to prove his income. |
| To go conventional the borrower must be able to | | | | If applying for a VA loan here is, a checklist of items |
| prove income and have reserves in the bank. | | | | that loan officer is going to need to get you approved: |
| FHA loans - These loans are for people who have | | | | Copies of driver's license and social security card |
| had some credit problems in the past. To obtain this | | | | 1 month recent pay stubs |
| type of loan generally the borrower has to be on time | | | | 2 months recent bank statements |
| with all accounts for the past year. These usually | | | | 2006 and 2007 W2's and tax returns |
| require that the borrower put down at least 3% to the | | | | Most recent statement of 401K, IRA, CD's |
| transaction. This 3% can be gifted from a relative. This | | | | DD-214 |
| program allows up to 6% seller contributions to cover | | | | Certificate of eligibility (original) |
| closing costs and the costs associated with setting up | | | | It is important to understand the pros and cons of |
| an escrow account. The FHA loan also requires up | | | | each mortgage option. In order to make the best |
| front mortgage insurance for 2.25% to 2.5% rolled onto | | | | decision the loan officer should take the time to explain |
| the back of the mortgage. The mortgage insurance | | | | all three types. Compare the three and determine |
| premium is .5%, which is cheap. To be eligible for an | | | | which makes the most sense. To make the best |
| FHA loan the borrower must have the ability to prove | | | | decision be certain all of the facts are available. |