This video could save some veterans thousands. VA loan applicants pay a funding fee - as of 2014, 2.15% of the total loan amount - which can be thousands of dollars.Some veterans and spouses are eligible for exemption. Broadly speaking, veterans who received disability benefits - current or former and who are NOT currently in debt to the government may be exempt from the funding fee.Some spouses may qualify as well. The key thing to understand is, exemption from the funding fee is NOT automatic! Borrowers must certify their veteran status, government debt, benefits and active service stateon VA Form 26-8937. It is important to tell your mortgage company that they need to submit this form EARLY in your home-buying process - if they just look up your records without submitting the form the VA will not begin the review and approval process and your home purchase could be delayed by weeks.

The COE is the key document that verifies to lenders that someone is eligible for a VA-backed loan. Servicemembers, Veterans and National Guard and Reserve members may apply online or through their lender; most lenders have access to the system and can verify eligibility IF the VA has records on file. The VA also maintains a hotline for assistance. Surviving Spouses can use VA Form 26-1817 to request determination of their eligibility for VA Loan Guarantees. Your lender may be able to assist with processing or contact the VA for information this video did not address.

The video puts this in more visual terms, but 203(b) is the most commonly used FHA program. It offers a low down payment, flexible qualifying guidelines limited lenders fees, and a maximum loan amount. 203(k) loans enable homebuyers to finance both the purchase and rehabilitation of a home through a single mortgage. A portion of the loan is used to pay off the sellers existing mortgage and the remainder is placed in an escrow account and released as rehabilitation is completed. Basic guidelines for 203(k) loans are as follows: The home must be at least one year old. The cost of rehabilitation must be at least $5,000, but the total property value - including the cost of repairs must fall within the FHA maximum mortgage limit. The 203(k) loan must follow many of the 203(b) eligibility requirements. Lenders will know specifics about improvement, energy efficiency, and structural guidelines.

Even though this video simplifies things to help you remember, FHA closing costs are similar to those of a conventional loan, with the exception of an FHA mortgage insurance premium. As of 2013, the FHA requires a single, upfront mortgage insurance premium equal to 2.25% of the mortgage to be paid at the closing (or 1.75% if you complete the HELP program). If the loan is paid off in full within the first seven years, this initial premium may be partially refunded. If your mortgage is longer than 15 years or if you have a 15-year loan with an LTV of more than 90%, you will have to pay an annual premium after closing. This premium is paid monthly.

There are some great tips in this video, like: Call or write to your lender as soon as possible. Clearly explain the situation and be prepared to provide financial information. If you fall behind - Keep living in your home to qualify for assistance. Contact a HUD-approved housing counseling agency and cooperate with the counselor/lender trying to help you. HUD has a number of special loss mitigation programs available to help you: Special Forbearance - your lender will arrange for a revised repayment plan which may include temporary reduction or suspension of payments; you can qualify by having an Involuntary reduction in your Income or Increase In living expenses. Mortgage Modification - allows you to refinance debt and/or extends the term of the your mortgage loan which may reduce your monthly payments; you can qualify if you have recovered from financial problems, but your net income Is less than before the problem. Partial Claim - your lender maybe able to help you obtain an interest-free loan from HUD to bring your mortgage current. Preforeclosure Sale - allows you to sell your property and pay off your mortgage loan to avoid foreclosure. Deed-In-Lieu Of Foreclosure - lets you voluntarily give back your property to the lender it will not save your house but will help you avoid the costs, time, and effort of the foreclosure process. If you are having difficulty with an-uncooperative lender or feel your loan servicer is not providing you with the most effective loss mitigation options call the FHA Loss Mitigation Center for additional help.

Watch this video and take a few notes: seasonal pay child support retirement pension payments unemployment compensation VA benefits military pay Social Security income alimony, and rent paid by family all qualify as income sources. Part-time pay, overtime, and bonus pay also count as long as they are steady. Special savings plans-such as those set up by a church or community association - qualify, too. According to HUD, income type is not as important as income steadiness with the FHA.

"Assumable" means "someone else can take over the loan when they buy your home." As this short video explains, FHA loans are usually assumable. If you have an FHA loan, particularly one with favorable terms, and it is assumable, you may have another tool in your selling negotiation. The process of assuming a loan can be easier, and sometimes less expensive, than starting a completely new loan. This is good for the buyer! Assumption requires a credit check, but home appraisal and other processes and costs can be skipped. Interest rates will affect the value of assumability. If interest rates have dropped since you originated the FHA loan, of course, there will be less interest in assuming it. Know the interest rate and terms of your FHA-backed loan, and read the loan terms to see if it is assumable, before selling. It may help you sell. And if you are in the process of buying with an FHA-backed loan, ask whether the loan is assumable. If interest rates rise, that assumable loan may become a valuable asset when you sell in the future.

Loans from FHA-approved lenders (Federal Housing Authority) follow most of the same steps as conventional loans. As you might expect, because a Federal agency is involved in the loan, there may be just a bit more paperwork. The FHA has worked hard to speed up the origination process. Their innovations include options for applying without face-to-face meetings, via telephone and video conference. Search for FHA-approved lenders in your area, and get in touch with them to find out about current programs and options for your situation.

"Well pull your credit." is the bland phrase you might hear from a lender. What does that mean? Three companies — Experian, TransUnion and Equifax — maintain records of peoples debts and payments. They issue a credit score for you, based on this data. From a lenders perspective, the credit score provides a consistent measure to assess the possibility of a borrower defaulting on a loan. Your credit score can directly affect qualifying for a loan, rate and other terms. The better your score, the better your borrowing situation. A good credit score saves you money, which can help you maintain a good credit score. Its worth checking your credit score regularly, but particularly before a big transaction like a mortgage. If there are issues, start addressing them early. This video may help you understand the score; look for other videos here on credit scores and credit history for more.

Some combinations of loan terms — such as a small down payment — may require the buyer to pay mortgage insurance. (See the video on Private Mortgage Insurance here to learn a bit more about it.) PMI can add yearly costs to your mortgage, but you may not be required to continue carrying for the whole term of the loan. If your loan was consummated after July 29, 1999, and your payments are current, you have some options. Your lender must terminate PMI when principal balance is 78% of the original value of the home. Your lender must terminate PMI if you reach the halfway point of hte loan term (e.g. 15 years on a 30-year fixed loan.) You can request cancellation of the PMI policy yourself when principal reaches 80% of original value. Logically, that suggests that the lender didn’t cancel automatically, so if you’ve hit the 78% market, ask them in writing. Consumers have the right to ask for the date that either of these balances will be in force. If your mortgage is relatively new, ask for the date and put a followup note on your calendar or phone to check — even if it’s years in the future. Follow any steps the lender requires, do everything in writing and keep copies.