VA Loan Eligibility: How Long Do I Have to Serve? The VA home loan is a benefit Americans receive from the government for serving their country as part of the military. Like many other benefits, VA loans have requirements the recruit must fulfill before they can be considered eligible to apply. For example, those serving in the National Guard or in the Reserves have a minimum duty requirement--six years of honorable service must be completed before the service member can apply for VA loan eligibility. For Guard and Reserve members who have retired, the minimum service requirements have obviously been fulfilled and the VA simply requires an NGB Form 22 (Report of Separation and Record of Service) or the NGB Form 23 (Retirement Points Accounting) plus proof of the nature of the discharge. A discharged member of the Selected Reserve who has never been activated for federal service needs a copy of the most recent annual retirement points statement and evidence of honorable service. Those in the Guard or Reserves who were activated for federal service should furnish a copy of their DD Form 214. For active duty service members, VA eligibility requirements for a VA mortgage are different. Active duty service members have different requirements for establishing eligibility for a VA loan than their Guard or Reservist counterparts. The VA requires active duty military members to supply a current statement of service including the date active duty began, plus a signature indicating the approval of the unit commander. But when can they actually accomplish this? New recruits in basic training won’t be able to apply for a VA home loan—there’s no way for someone in basic training to go through channels to get a commander’s signature of approval. Even if a recruit were to make such a request, the trainee would be told they must wait until they’ve successfully completed basic training to be eligible for VA benefits. For most new recruits, technical school follows basic training, or some form of on-the-job training that is time intensive and requires time and attention the trainee must give to the task at hand. Again, there isn’t much time to go through channels to request a commander’s approval for a VA home loan in many cases, at least until the initial orientation phase is complete for the new soldier, sailor, airman or marine. On top of such concerns, a newcomer to the military will likely be moving around a great deal in the earliest days of their military career—between technical schools and the actual first assignment, some new recruits may be assigned to two or more military bases in a short amount of time—far too short to consider purchasing a home in any given area until the first long-term assignment has been issued. While a new military member may be technically eligible to apply for VA loan eligibility as soon as circumstances permit, they are usually not able to do so until they report for duty at their first assignment. Contact Weststar Mortgage today 575-382-2016

Is low Mortgage Rates Working

Could it be that keeping mortgage rates around 4 percent is finally having a impact a ton of housing data is starting to come to that conclusion...... Its all pointing to the housing market recovery is underway.
Pending Home Sales Index : +10% In October

After 3 months of slow, steady fade, the Pending Home Sales Index rebounded sharply in October.

The index jumped 10 percent on a month-over-month basis.

A "pending home sale" is a home under contract to sell, but not yet closed. October's reading is the highest for all of 2011, and the second-highest dating back to April 2010 -- the last month of the last year's federal home buyer tax credit.

The Pending Home Sales Index is published by the National Association of REALTORS®.

Pending Home Sales Project Housing Market "Future"

If you're a home buyer or seller in San Francisco, Washington, D.C., or anywhere in between, the Pending Home Sales Index is a housing metric worth watching.

In fact, the index may give the most reliable answer to the question "How is the market?"

See, unlike the Existing Home Sales report or the Case-Shiller Index which report on past market activity, the Pending Home Sales Index is a forward-looking housing indicator. Because 80% of homes under contract close within 60 days, we can look at the Pending Home Sales Index and get a good idea for what "closed sales" will look like 2 months hence.

By region, Pending Home Sales fared as follows :

• Northeast Region : +31.5% from September
• Midwest Region : +16.7% from September
• South Region : +8.1% from September
• West Region : -5.0% from September

All 4 regions made year-over-year improvements which means that this year's year-end closings will be even stronger than last year's.

Seem improbable?  Talk to your friends in the real estate, mortgage or title business. They'll each tell you the same thing -- December is busy, busy, busy.

Click here to request a rate qoute

Housing Strength Projected by Builders As Well

October's Pending Home Sales Index foretells a strong Existing Home Sales report for November and December, but this should not surprise us.

First, home builders have been telling us for weeks that the market is strengthening. The National Association of Homebuilders reports homebuilder confidence at 18-month highs and builder report huge amounts of foot traffic -- much more as compared to even just 3 months.

Second, home supplies for both new homes and resales have dropped to multi-year lows.

And, third, although low mortgage rates don't directly cause people want to "go out and buy homes", it's definitely a factor -- especially for first-time buyers and investors with more than 4 properties.

When you can buy homes on the cheap and finance them the same, it makes for a compelling conversation.

Higher Home Prices Coming For 2012

There's a growing pool of evidence that demand for homes is rising as the stock of homes for sale is falling. It portends higher home prices ahead.  The best time to buy a home may be right now.

Buying or selling a home in the next 6 months?  Get a feel for what your next housing payment could look like based on today's mortgage rates.

Contact Weststar Mortgage today

 

 

The FHA Streamline Refinance : The Complete Mortgage Guidelines

What Is An FHA Streamline Refinance?

The FHA Streamline Refinance is a special mortgage product, reserved for homeowners with existing FHA mortgages. Homeowners with conventional mortgages via Fannie Mae or Freddie can't use it. FHA Streamline Refinances are the fastest, simplest way for FHA-insured homeowners to refinance their respective mortgages.
The FHA Streamline Refinance program's defining characteristic is that it does not require a home appraisal. Instead, the FHA will allow you to use your original purchase price as your home's current value, regardless of what your home is actually worth today.
In the words, with its FHA Streamline Refinance program, the FHA does not care if you are underwater on your mortgage. In fact, the program encourages it. Even if you owe twice what your home is now worth, the FHA will refinance your home without added cost or penalty.
The FHA allows for unlimited loan-to-value with its Streamline Refi program -- a huge help to FHA homeowners in places like Florida, California, and Arizona where home values have plunged since 2007.
Beyond the "no appraisal" part, though, an FHA Streamline Refinance mortgages is similar to most other loan products. It's available as fixed rate or adjustable mortgage; it comes with 15- or 30-year terms; and there's no prepayment penalty to worry about.
Plus, interest rates are as low as with a "regular" FHA mortgage product.

FHA Streamline : No Verification Of Job, Income, Assets

In April 2011, while the rest of the world was making it harder to get approved for a mortgage, the FHA was making it easier.
In a sweeping guideline update, the FHA abolished verification for practically everything on an FHA Streamline Refinance mortgage application. Now, as written in the FHA's official mortgage guidelines, the mortgage approval process for an FHA Streamline Refinance says :

1. Employment verification is not required with an FHA Streamline Refinance
2. Income verification is not required with an FHA Streamline Refinance
3. Asset verification is not required with an FHA Streamline Refinance
4. Only need minimum 620 Credit score with a FHA Streamline Refinance

And, as mentioned earlier, there's no need for a home appraisal, either.

Click here to contact us to get a qoute today !

Put it all together and it means that you can be (1) out-of-work, (2) without income,  (3) having lost all of your home equity -- and yet, you will still be approved for the FHA Streamline Refinance program.
That's not as crazy as it sounds, by the way.
To understand why the FHA Streamline Refinance is a smart program for the FHA, we have to remember that the FHA's chief role is to insure mortgages -- not "make" them.
Therefore, it's in the FHA's best interest to help as many people as possible qualify for today's low mortgage rates. Lower mortgage rates means lower monthly payments which, in theory, leads to fewer loan defaults.
This is good for homeowners that want lower mortgage rates, and for the FHA,

Call us today at 575-382-2016 and see if you qualify for a FHA Streamline Refinance

I am a first time home buyer, where do I start (Part II)

Over the next few weeks I will be posting information covering becoming a " First Time Home Buyer" to help walk you through the maze to becoming a " First Time Home Buyer"

Step 2.

What is Credit

  In today’s market everything you do is based off your credit rating. So let’s do a   short overview of credit and what it means to you.

A credit score number is often called a FICO score, for Fair Isaac Corp., the California Company that developed the system upon which it is based.
It's designed to give lenders a fast, accurate prediction of the risk involved in giving you a loan. Lenders have attested to the score's value in streamlining the underwriting process and creating more opportunities for consumers to get mortgages.
Scores range from 350 to 850 with the average consumer falling in the 600 to 700 range.

Scores are calculated based off of the following five categories

1. Payment history
2. Amounts owed
3. Length of credit history
4. Types of credit used
5. New credit

    Your score is made up from information from all five of these categories payment history having the most weight when it comes to your score if you pay your bills on time your score will reflect it by going up pay your bills late and your score will reflect it by going down. One of the most important things to remember is always pay your bills on time and never over extend yourself. For more information visit MyFico.Com. If you are interested in talking with some one now either click on this link Contact Us or call us at 575-382-2016. And let us show you how easy it is to become a “first time home buyer”

I am a first time home buyer, where do I start (Part 1)

Over the next few weeks I will be posting information covering becoming a " First Time Home Buyer" to help walk you through the maze to becoming a " First Time Home Buyer"

Step 1.
 Are you ready to buy a home?

When the time comes to decide it’s time to buy a house, you are faced with many decisions. As a first time home buyer the first is whether you are actually ready to buy. Finding the right first home is not always easy and getting a first time home buyer mortgage loan can be time consuming and complicated. To help you decide if you're ready as a first time home buyer, we'll take you through the steps a mortgage lender uses to decide if you qualify for a first time home buyer loan.

When a mortgage lender makes you a first time home buyer loan, it has been determined that there is a good likelihood that you can keep that promise. Is does neither you nor the lender any good if you are unable to make the loan payments each month.

To decide if you will be able to repay a first time home buyer loan, your loan officer will look at many different pieces of information about you. This is the processing stage. We will look at your past two years work history make sure you have a consistent work history with no gaps. Your credit will be checked to see how you have repaid your debts in the past and to see whether you are likely to repay your debts in the future and your ability to repay the mortgage along with your current debts. Your bank statements will be analyzed to make sure you don’t over extend yourself with your day to day transactions.

Next time we will go over more on what is looked at on your credit report. If you are interested in talking with some one now either click on this link Contact Us or call us at 575-382-2016.

click here 26_11_15 for complete update

VA CHANGES THE FUNDING FEE AGAIN !!

On October 5, 2011, the President signed H.R. 2646, Veterans Health Facilities Act Capital Improvement Act of 2011. This bill includes changes to the VA Funding Fees that were just established effective October 1, 2011. There are specific changes to the Funding Fee depending on the date that the loan closes so please review the attached VA Circular 26-11-15 thoroughly. Below I have outlined the changes to the Funding Fee and effective dates

 

Loan Closed 10/01/2011 through 10/05/2011

Loans closed within these dates will be subject to the previously announce and reduced Funding Fees detailed in VA Circular 26-11-12.

Loans Closed 10/06/2011 through and including 11/17/2011

Funding Fees for loans closed within this time period will be subject to Funding Fee rates in effect prior to the October 1, 2011 reduction. (Yes, these are the higher Funding Fee rates)

Loans Closed on or after 11/18/2011

The Funding Fee for these loans will be reduced as shown on the attached Exhibit A. As you can see per the attachment, these rates are the same as the lower October 1, 2011 rates.

To try and simplify this, if you had a VA loan close between 10/01 and 10/05, it had the reduced Funding Fee announced effective 10/01/2011. If you have VA loans that are due to close between 10/06/2011 and 11/17/2011, these loans will be subject to the higher VA Funding Fees previous to 10/01/2011.

Loans closing on or after 11/18/2011 will revert back to the lower VA Funding Fee. Again, please see attached Circular and Exhibit A for more details.

In this announcement, it references the probability of Congress making future changes to the VA Funding Fee structure “in the coming weeks” so stay tuned.

Buying is Better Then RENTING

 

Buying is Better than Renting in doing a quick search of homes available in the Las Cruces area at Las Cruces Property Search dot Com  I found 89 homes available between the price range of 75K to 120K.
   If you are currently paying $500.00 to $800.00 a month in rent you could own a new home RIGHT NOW!!

In keeping this simple lets look at the low end if you are paying $500.00 a month in rent you could qualify for a home in the price range of $75000.00 if you stayed in this home for six years it would cost you approx. $9362.00 less then renting an average savings of $1560.00 each year. Based on home values increasing by 3% a year.

So why are you renting when home prices will never be this low again?

Apply Now

Contact WestStar Mortgage today let us show you how easy it can be to own a new home. We have programs available that allow you to purchase a home with as little as ZERO down.

Data provided by the New York Times

 

Stop Paying Your Landlord's Mortgage !

It's staggering when you think about the cost of living, especially if you're a renter and not a home owner. If you are currently paying $1,000 a month for rented housing, then over the next three years, your property management company will effectively have reaped $36,000 of your hard
earned cash! You're paying their mortgage when you could be building equity in your own property.

What if I don't have the money to buy a home right now?

There are many loan programs available that offer low and no down payment options. Some programs permit gift money as a down payment, and often sellers are willing to make a contribution to your purchase if they want to sell the home quickly.
There are many benefits of home ownership to consider, most of all, tax deductions. Let's take a look at how advantageous this can be as a homeowner:

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How much is tax deductible?

Tax deductions vary, but the IRS has laid out solid rules. They also have several tax publications full of helpful information worth taking the time to read. Publication 530, Tax Information for First-Time Homeowners, is very thorough, as is Publication 936, Home Mortgage Interest Deduction. For quick reference, you can refer to Tax Topics 505, Interest Expense, and 504, Home Mortgage Points.

These publications often refer to local and state guidelines, so you may want to consult a CPA to answer all the questions that arise from reading these materials. Here are a few tips you should know up front:

Real Estate taxes are deductible on a primary residence. Real Estate taxes are paid at settlement or closing, or through an escrow account.

Mortgage interest is deductible on a loan to purchase, build or improve your home. Your lender will provide you with a Mortgage Interest Statement (Form 1098) to list the total interest paid during the year. This should include any deductible points paid for that year.

Pre-paid interest is deductible in the year it is paid. At the close of a real estate transaction, borrowers usually pay for the interest on their loan that falls between the closing period and the first of the next month. Mortgage payments are made "in arrears" so when a loan is closed mid-month, there is interest due to the new lender which must be paid in advance.

If you are building a home, the interest on the construction loan is deductible. The construction period cannot exceed 24 months prior to the date that you move in if you claim this as your primary residence.

Call me  at 575-382-2016 to discuss your specific needs and we'll find the program that's right for you. We have a variety of low down payment and no down payment programs available.

The Weststar Mortgage  Difference

Makes a Big Difference !

We have the Money to lend.

The Banker/Broker Difference
Because Weststar Mortgage is a mortgage banker, we lend clients our own money, enabling our loan officers to save customers significant costs and fees that a middleman (a mortgage broker) might charge.

We decide whether or not a loan can be done.

In-house Underwriting, Closing and Funding
In-house underwriting, closing and funding departments expedites the overall loan process and allows for a much smoother transaction.

We can close loans in  as fast as 2 weeks

Advanced Technology and Industry Knowledge
Weststar uses the most advanced technology available to close loans quickly, at a low cost. By combining the use of the Internet along with advanced processing software and automated underwriting systems, we have taken the mystery out of approving and closing a home loan.

We are local.

Personalized Customer Service
Because we are in your area, we can meet with your clients in person to discuss their mortgage options. My goal is to provide strong customer service which includes frequent and timely communications throughout the home buying process and keep you and your clients well-informed and educated about the status of their loan.

Contact us today to find out how we can make a BIG difference in your bottom line!

 

 

 

Great news for our U.S. Veterans – Affordable Home Mortgages!

VA Circular 26.11.12

Great News for our Veteran's Applying For Home Loans Effective October 1st 2011. The VA Funding Fee is dropping ! If you are a Veteran and looking for a home in Las Cruces, Now is the time to buy !

 Not only does a Veteran qualify for 100% mortgage financing with no money down, Effective October 1st,2011 the VA Funding Fee is dropping ! Add to the current low interest rates available makes now the time to buy!

Currently, a first time Use of Entitlement for a Veteran on a purchase is 2.15% and will drop to 1.40%. The Subsequent Use of Entitlement is currently 3.3% and will drop to 2.8%.

If you are a Veteran and you are putting 5% down on a purchase, the first time Use of Entitlement is 1.5% but will be cut in half to 0.75%. The Subsequent Use will also be cut in half from current 1.5% to 0.75%.

If a Veteran is putting 10% down on a purchase, the first time Use of Entitlement along with the Subsequent Use of Entitlement is 1.25% and will drop to 0.50%!

This is great news for our  U.S.Veterans. Weststar Mortgage  in New Mexico is a VA approved residental mortgage lender. We underwrite and fund inhouse all VA mortgage transactions.

Choosing A 15-Year Fixed Rate Mortgage Over A 30-Year Fixed Rate Mortgage

It’s not just 30-year fixed rate mortgages that are posting all-time lows these days. The 15-year mortgage has been plunging, too.

If you’ve ever considered a 15-year loan term, it’s a terrific time to talk to your lender. According to Freddie Mac’s weekly mortgage rate survey of roughly 125 U.S. lenders, at 3.30 percent, the 15-year fixed rate mortgage is at its lowest point in history.

The 3.30% rate doesn’t come for free, however. Based on average loan term nationwide, borrowers in Florida choosing to “go 15″ should expect to pay 0.6 discount points at closing. 1 discount point is equal to 1 percent of your loan size.

With low rates, 15-year fixed rate mortgage can be enticing; a primary benefit is the huge reduction in the long-term interest costs of your loan. The downside, though, is that monthly mortgage payments can be relatively large.

At today’s mortgage rates, a 15-year fixed rate loan carries a principal + interest payment of $705.10 per $100,000 borrowed — a 46% increase over a comparable 30-year fixed rate loan. If you can manage the bigger payments, though, you’ll reap $47,000 in interest payments savings per $100,000 borrowed in paying off your loan in full.

$47,000 per $100,000 borrowed is a huge amount of savings and those saved monies can be used to fund items such as college, home improvement, and retirement, among others.

That said, the 15-year fixed rate mortgage is not for everyone.

Because it comes with higher monthly payments, the 15-year fixed rate mortgage may add financial stress to your household budget. And, once you have committed to a 15-year loan term and its payments, you’re can’t “go back”. Your lender won’t revert your loan to a 30-year schedule without a refinance, and a refinance could be costly.

 Contact Us Today to see if this is right for you !

USDA funding fee changes

Effective for all commitments issued by USDA on 10/1/11, the USDA RD funding fee will drop from 3.5% to 2%. How are they going to make up the difference you ask? Well, USDA is now going to collect an annual fee on your average outstanding loan balance for the year. The fee is .30% and will likely be collected monthly in an escrow payment, by your mortgage loan servicer. Your mortgage loan servicer, will then cut a check to USDA, in the same way they pay your real estate taxes and home owners insurance.

So how does this affect you? Well overall the monthly payment be will increase, which may lessen your qualifying purchase price. This will NOT have as big an impact as the FHA mortgage insurance increases have had.

If you have a USDA loan in process currently it must have USDA commitment PRIOR to 10/1/11 to fall under the current guidelines.

Contact us today for more information.

Please see link for Complete annoucement      USDA-4551