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FHFA Announces Conforming Loan Limit Increase In 2019

The Federal Housing Finance Agency has announced that the maximum conforming loan limits for mortgages has increased. In most of the country, the confirming loan limits will increase nearly 6.5%, from $453,100 to $484,350 for 2019. For most high-cost areas, where 115% of the local median home value exceeds the loan limit, the loan limit …

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Nervous About Buying? Here’s A Dose of Confidence

If you are interested in buying a house, but do not know what you might need, or whether you can qualify, you’re not alone. Many would-be buyers are intimidated by the thought of what it takes to buy a home. Some wonder whether they can afford to buy, if they have enough saved for a …

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Can I Still Get A VA Loan With Bad Credit?

Unfortunately, it depends on the situation and reasons, so there is no simple answer for bad credit. A few potential reasons could be that you have experienced a divorce which led to a bankruptcy, mismanaged your finances, experienced job loss, or any other financial hazards. Your credit is calculated from many moving parts. The good …

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Considerations for VA Loans

Lenders take a number of things into consideration when evaluating a VA loan application. While there isn’t a credit score requirement for participation in the VA loan program many lenders want to see scores north of 620, and at Benchmark Mortgage this number is 580 to move forward with a loan.

 

There are other factors that play into this as well: a prospective borrower must also meet the VA standards for debt-to-income ratio and residual income.

 

Debt -to income ratio guidelines have no maximum, however, the lender must provide compensating factors for debt ratios over 41%.

 

Residual income requirements are as follows:

 If you face credit problems and do not qualify upfront we are happy to guide you in a process to improve your credit and reach that dream of home ownership.

Some may find these DTI factors easy to achieve and still have plenty left over to appease the residual income requirements and others may not. That does not mean there is no reason to hold hope. Borderline DTI ratios may still be workable.

Compensating Factors

When DTI and/or Residual Income requirements are leaning more in the direction of the VA margins, lenders can take a look at things called Compensating Factors.

For a VA loan application Compensating Factors include:

  • Excellent credit history
  • Minimal debt
  • long-term employment
  • Military Benefits
  • Conservative credit use
  • Liquid assets
  • As well as many others

While these factors may help it is noted by the VA that these factors must go well beyond what would typically be considered a requirement by the VA loan program. Many veterans and active duty service members benefit from compensating factors.

Be aware that the VA does not allow compensating factors to counteract bad credit.

Negative Factors

While your DTI and/or Residual Income may be within margins for qualification, other factors can hurt your loan application.

Those negative factors are:

  • Late Payments
  • Previous Bankruptcies
  • Foreclosures

These factors do not bar you from loan qualification but they can cause lenders that you are a risky investment.

 

****If ever you are having issues or need help with VA loan questions call the toll-free number to speak directly with a VA loan Technician 1-877-827-3702

 

https://www.benefits.va.gov/WARMS/docs/admin26/pamphlet/pam26_7/ch04.doc

 

Benchmark and The Patriot Tour by Team Never Quit

Benchmark Mortgage is proud to announce our partnership with Team Never Quit. This year, we will be hitting the road with the 2018 Patriot Tour! Our Team is proud to have changed the way VA lending is done, and we take a “never quit” attitude with our veterans and their dreams. NO MORE will the …

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2018 Homeownership Profiles: Millennial Buyers

In 2017, Australian millionaire Tim Gurner famously attempted to blame millennial homebuyer obstacles on their inability to avoid frivolous spending on $19 avocado toast, in comments that were widely mocked throughout the internet. Many commentators are still quick to point the finger at extravagant spending to explain why homeownership among younger adults has declined compared …

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How To Avoid Roadblocks Before Closing On Your New Home

You have submitted a mortgage application, found your dream home, and put in an offer. Now what? Applying for a home loan is an ongoing process, from application to closing, that does not have to be stressful. There are several things you can do to make the process more efficient, and things not to do …

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How To Avoid Roadblocks Before Closing On Your New Home

You have submitted a mortgage application, found your dream home, and put in an offer. Now what? Applying for a home loan is an ongoing process, from application to closing, that does not have to be stressful. There are several things you can do to make the process more efficient, and things not to do …

The post How To Avoid Roadblocks Before Closing On Your New Home appeared first on Benchmark.

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Construction Loans: What to Expect

Building a new home offers many advantages over purchasing an existing home on the market. You are able to customize the home to your specific needs and preferences and avoid costly repairs of outdated features. New homes are often also more energy efficient and technologically equipped. Different from Traditional mortgages. Securing financing for a construction …

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Benchmark Introduces New Program to Expand Options for Medical Professionals

Benchmark has launched a new mortgage product that is customized to the unique career and financial outlook of professionals in the medical field. Last year, we launched the Medical Doctor Loan Program to better serve medical residents and doctors. Now we have further expanded our options for medical professionals to include jumbo loan amounts up …

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