As the video says - NO. Buying rental property may be a great financial strategy but VA mortgages arent intended for this purpose. The VA loan program started after World War II to help eligible veterans secure homes and that is still the primary aim. There are exceptions for houses still being built but the general rule with a VA loan is that you must occupy the house within 60 days of loan closing. So rental property loans will require conventional financing options based on income and credit.

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.

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.

Ask your realty representative or lending institution for info on the HELP program from the FHA. As we reveal you in this video, HELP - Homebuyer Education Learning Program - is structured to assist very first time purchasers start the homebuying procedure. It covers such subjects as budgeting, discovering a house, getting a loan, and house upkeep. Conclusion of this program might entitle you to a decrease in the preliminary FHA home mortgage insurance coverage premium from 2.25% to 1.75% of the purchase cost of your brand-new house.

The S crow is kind of a mascot here, because there is no such bird. You wont hear the word "escrow" for years, and then youll hear it all the time if youre buying a home. Heres what the word means. Some of the charges connected to a home: Real estate taxes Mortgage insurance Homeowners insurance are applied annually. The escrow account is a bucket where part of monthly mortgage payments accumulate to pay these costs. Escrow account costs may — and usuallydo — change each year, because these charges change. Its useful to understand that the lender is responsible for making those payments on time, from the escrow account. If somethings late, make sure you are not fined or punished.

The term "appraisal" has a specific meaning in the home-and-mortgage process. Its not an inspection; it is a professional assessment of thevalue of the property. The companies and individuals that do this assessment are called "appraisers". Its important to understand that the appraiser works for the lender, not the buyer or the seller. While a professional opinion about value seems like a useful thing in negotiating price, thats not their job. Because the property will be used as loan collateral, the lender really needs to know what its worth; thats the job. Appraisers have the training and experience to put numbers on key aspects of a property: Size Condition How it compares with other properties in the local market They have the training to focus on things that will affect value; as the video says, damage and neglect affect value but a sink full of dishes does not. The appraised value can affect transaction details. If the value is lower than the offered price, the offer might have to change — for example, reducing the price, or increasing the down payment. Appraisal results are a good point-in-time thing to know. Just remember that the appraisers customer is the lender, not you.

When you apply for a mortgage and provide the 6 required pieces of information, a lender must provide a Loan Estimate within 3 business days if the loan is approved. This video explains the basics. The Loan Estimate is a standard form, with required information. Yours will include: Loan terms, including interest and loan schedule Projected payments Costs at closing, including: Total Interest Percentage APR (Annual Percentage Rate) Estimates of costs from lender-recommended providers ("Cant Shop"). Final costs must be in defined limits of these estimates. Estimates of costs that you can shop; these will vary based on your decisions. Be clear that the Loan Estimate is anestimate - not a final, binding contract for loan costs and terms. It will give you a ballpark understanding about this loan, and some limits on the possible changes in final costs. For more assistance (and additional videos) on the specific parts and pages of a Loan Estimate, search "Loan Estimate" on this site.

The video puts this in more visual terms, however your individual scenario will figure out the very best sort of loan for you. Lenders can assist you utilize your responses to choose which loan best fits your requirements. Do you expect your finances to change over the next few years? Are you planning to live in this home for a long period of time? Are you comfortable with the idea of a changing mortgage payment amount? Do you wish to be free of mortgage debt as your children approach college age or as you prepare for retirement? Lenders can assist you in using your replies to decide which loan is the best fit for you.