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The latest numbers came out and housing starts have decreased. We have noticed it here in Clark County WA. You can see a lot of builders in town have not been buying new land for neighborhoods, and they continue to close out neighborhoods they currently have. If this does continue in the near future (it is hard to believe) but we may be in a position where there is a shortage of available new construction due to the fact that you don’t see any new developments popping up. This would be good to get rid of some of the inventory of existing homes to get us to where we need to be on the other side with this industry.

Kerry N. Greenwald

NMLS # 70269

Sr. VA Loan Specialist

Creekside Mortgage Inc.

360.571.LOAN (5626)

www.VALoanWA.com

www.OregonVALoan.com

 We have come across quite a few people recently who have claims in to the VA  for VA service-connected disabilites waiting to purchase a home until the disability claim is awarded so they will  be exempt from the VA funding fee is a little-known secret out there that you are typically backdated to the filing date of your disability. If you do purchase a house in between that date, you will be  refunded the funding fee back from the VA.  However,  this is not always the best route to go because you technically don’t get the money back in your pocket; it is given back to you to give back to the bank, so in reality you are financing the interest of that cost over the life of the loan. If you wait it is always the best scenario to do, but in that rare situation where you want to buy the house, don’t let waiting for the disability award stop you from doing that.

Kerry N. Greenwald

NMLS # 70269

Sr. VA Loan Specialist

Creekside Mortgage Inc.

360.571.LOAN (5626)

www.VALoanWA.com

www.OregonVALoan.com

The VA loan allows a Veteran to utilize his/her VA loan multiple times with various combinations depending on military history, service connected disability, down payment, and prior VA loan history. I must preface my topic: Why Put 5% down on a VA Home Loan?  with a basic answer to another question: What is a VA funding fee?:  The VA funding fee is added as a dollar amount calculated by a  percentage to the purchase price of the home you are buying.   The VA funding fee guarantees to the lender that if a Veteran fails to repay the loan the lender is protected for $36000 up to $144,000 and additional entitlement up to an amount equal to 25% of the allowed county loan limit for a single family home may be available... My discussion is why put down 5% on my VA Home Loan??  When a Veteran with active duty service (which is nearly everyone including reserves these days due to active duty service in multiple theatres of  war)  the VA funding fee is set at 2.15% for first time use of the VA benefit and subsequent use ( new purchase, cash-out refinance) is set by the VA at 3.3%.  The Veterans who are reserves with no overseas service in Iraq or Afghanistan for example (on active duty ) will have slightly higher fees, and for the purpose of this discussion I will focus on Active Duty and Active Duty Reserves. Here is where we finally get to the meat of it!  If you put down 5% on a VA loan your funding fee no matter how many times you have used your VA Home Loan benefit  the funding fee drops to 1.5% which is a huge savings for an average 250k home, second use. The VA funding fee for the 250k home at 3.3%, second, subsequent use would be $8250, but if you put down 5% the loan amount is now $237,500 and funding fee drops to $3562.50 a savings of  $4687.50!  With a first time purchase you still save a substantial amount of money as well. The funding fee on our example 250k home would drop from $5375 to $3562 so a saving of $1813, less savings than the first example however still a good savings and a lower amount to finance which will provide for a lower monthly payment. There is no other loan on the planet that even comes close to your VA Home Loan Benefit…All other loans require some type of mortgage insurance paid monthly when there is less than a  20% equity position. Here is something more to share (resisted saying wait there is more). On a VA Home Loan the seller can pay 4%( based on the purchase price of the home)  towards your VA Non-Allowables (fees the Veteran can’t pay),closing costs and pre-paid fees, so lets use our 250k home as an example. On our 250k home lets say the VA Non-allowables, closing costs and pre-paid fees come up to $5000, your VA realtor can make an offer of 250k with seller paying up to $5000 in VA non-allowables, closing costs and pre-paids. This 250k offer as written will net the seller $245,000. So, think of this, rather than paying for some of your closing costs you can use all of your money towards the 5% down since you don’t have to pay the va non-allowables,closing costs or pre-paids. Also if you put down 10% your VA funding fee will drop to 1.25% which to is a limited return for the additional funds required however your choice so had to let you know this option on down payment benefit. Feel free to contact any of us for more information on your VA Home Loan Benefits!

 

 

Michael Frakes

NMLS#71539

www.valoanspecialist.com

Creekside Mortgage

360-571-5626

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VA interest rates in Clark County WA have been trending lower than what some people can get on a conventional loan. It is pretty amazing to not be required to  put any money down on a house and get these great rates. You can get 100% financing with VA, and  the rate is equal if not better to what a conventional loan might be. The number of VA home loans being done in Clark County WA has been on the rise, and we hope that things hold steady, and this does continue in the near future.

Kerry N. Greenwald

NMLS # 70269

Sr. VA Loan Specialist

Creekside Mortgage Inc.

360.571.LOAN (5626)

www.VALoanWA.com

www.OregonVALoan.com

We changed our logo representing the fact that we are the number NW #1 VA Home Loan Experts. We really want to change our motto towards that, due to the fact that 90% of what we do now is just VA in Washington, Oregon, and Idaho. We can do all types of loan options, but VA seems to be the major factor of what Creekside Mortgage has been doing. The majority of employees that work at Creekside Mortgage are prior service, or  either had parents in the service or family members who are  Veterans. Our pride in continuing to specialize in VA will definitely be something we carry into the future.

Kerry N. Greenwald

NMLS # 70269

Sr. VA Loan Specialist

Creekside Mortgage Inc.

360.571.LOAN (5626)

www.VALoanWA.com

www.OregonVALoan.com

We have a new team member today on The Greenwald Team to help facilitate VA transactions and make the process smoother. Jenn Stanford and I will continue to do more of the front-end production and setting the files up. Chelsey Howard will do more of the coordinating, making sure appraisals are ordered, and help overall with closing transactions quicker. Our main focus is to stand by our advertised 25-day close, which is almost twice as fast as anyone in the industry on a VA transaction. This makes  the consumer Veteran happy, the banks happy, the title company happy, and  the real estate agents happy. We welcome Chelsey Howard to the team and look forward to many years together!

Kerry N. Greenwald

NMLS # 70269

Sr. VA Loan Specialist

Creekside Mortgage Inc.

360.571.LOAN (5626)

www.VALoanWA.com

www.OregonVALoan.com

We have had a lot of people recently doing VA transactions refinancing, who were caught up in the crazy 80/20 loans from a few years ago, or just ARMs that are re-setting  in the next year. People are taking advantage of the fact that rates are so low. and Clark County WA values have settled. We even have situations of people cashing out portions of their 401k just to be able to refinance their houses and not be forced out of their homes down the road. That is something that we highly recommend because  the interest rates are going to go up in the near future. It is inevitable, and while stocks are at an all-time high, you might as well use some of those  portions to refinance your home at all cost and by all means or plan on terminating or getting rid of it down the road. It is difficult to plan on trying to refinance it in the future. Values are not going to come back that quickly. It is better to bite the bullet now and take care of it.

Kerry N. Greenwald

NMLS # 70269

Sr. VA Loan Specialist

Creekside Mortgage Inc.

360.571.LOAN (5626)

www.VALoanWA.com

www.OregonVALoan.com

 

Total home sales in Clark County for the month of January of 2011 was $69.8 million, with 319 transactions, which stayed on a pretty steady pace for the last four years. In January 2010, there were 318 homes sold; in January 2009, 244 sold; and in January 2008, 312 sold. Home values have continued to decline, but the overall real estate market in Clark County, based on current conditions, have not been as bad as some other parts of the country.

Kerry N. Greenwald

NMLS # 70269

Sr. VA Loan Specialist

Creekside Mortgage Inc.

360.571.LOAN (5626)

www.VALoanWA.com

www.OregonVALoan.com

It has now been over three months since the Dodd Frank Bill was enacted, affecting  the mortgage industry as a whole. The take on it from industry professionals is that it has made business  much, much more difficult due to requirements to meet  the regulations. Many more  man-hours are required just to comply with them. Now that we have seen the full effect of the bill,it is clear it has affected two groups and two groups only-individual loan officers who facilitate  the transactions, and the consumers themselves. From what we have noticed, interest rates about a quarter different in the negative, with a higher rate for the burrower. The loan officer is making about 15-20% less. The companies and  banks that the bill targeted  have not felt the effect—the expenses just been passed to  the consumer.

Kerry N. Greenwald

NMLS # 70269

Sr. VA Loan Specialist

Creekside Mortgage Inc.

360.571.LOAN (5626)

www.VALoanWA.com

www.OregonVALoan.com