Good Mortgage Rates?
Navy Federal Credit Union offers a Veterans Choice loan (see
http://eics.navyfcu.org/general/rates.nsf/WebDataMortgage?OpenForm)
that offers up to $333,700 with no down payment and only 1.5 points.
I want to buy a $400,000 house and was told that I would need two
conventional loans, that Navy FCU would not let me get the Vet Choice
loan for the full max with a 2nd mortgage to make up the difference.
I have been doing military moves for 15 years and need my downpayment
money to replace my busted up furniture because I want to settle down.
Can anyone suggest some creative fiancing?...I want to borrow $400,000
for 30 years and keep the PITI under $3000/month...is this possible?
Without using precise figures, the P&I portion of a 400,000 loan will be
about 2500. The property taxes (California) will be in the neighborhood of
420, and the insurance should get dialed in at around 120. The total PITI
looks to be in the area of 3040.
Jeff Strickland
City Mortgage Services
San Diego
858-217-2449
I am not into the whole bait-and-switch sales approach. I will give you the
straight skinny with no obligation.
A few facts.
The 333,700 figure is the limit of a Conforming Loan. This number is set by
FNMA (Fannie Mae). Loans this amount or lower get a lower interest rate than
larger loans. Larger loans are called Jumbo Loans.
You can get better rates than VA Loans can offer. You can also get 100%
loans. The VA loans are a pain in the ass to do, and if you can qualify for
a conventional FNMA loan, you are usually much better of with the FNMA loan
than the VA loan. The VA loans have easier qualifying, and this may be what
is driving you towards the VA programs. To qualify for the FNMA loan, you
will be needing about $6750 per month in income. If you go with a FNMA loan,
I can get you a fixed rate that allows you to pay interest only (and qualify
on the I/O payment, which is easier) for up to 10 years. The actual I/O
period depends on which loan product you go with, some are only 60 months,
others can go to 120 months.
I think the problem you ran into at the credit union was not the credit
union, it was the VA and the VA program guidelines.
There are loan amounts limits of VA Programs. I believe the loan amount you
are thinking about exceeds these limits, and you can not use a VA program if
I am correct. To be honest, I am not a VA expert, but I have used a VA loan
on my own home when I was just getting started. I seem to recall that I had
to make my purchase decisions based on VA limits. I bought my house for
$150.00 under the then current limits, I could not have used the VA for the
other homes I was considering. A large part of my decision was that the
qualifying was easier, even when the rates were not as competitive.
You SAY you want a 30 year loan, but I wonder if that is really what you
need. Will you remain where the house is when you get out of the service? If
not, how long will you be in the service? You said you have been doing moves
for 15 years, so I assume you have about 5 or 7 years to go before you
retire. If true, and you will sell the house then and move back to where
your family home is, then take a loan that fits the time you will own the
house. I can get you a 5/1 loan that is fixed for 5 years then goes to an
adjustable ( but if you are going to sell in 5 or 7 years, then the
adjustable won't matter because you will either sell or keep it for 2 years
at most). The idea is that you can get a much lower rate on a 5/1 than you
can get on a 30 that you will be getting rid of in 5 years anyway, and the
savings will more than offset any short term exposure to the adjustable.
I would like to take your loan app and see if I can qualify you. I can do
this on the phone for free. If I can do your loan, I'll tell you. If I can't
do it, I'll tell you.