by John P. Allen, Direct VA Loan

The Energy Efficient Mortgage (EEM) program allows borrowers to upgrade the energy efficiency of the subject property and to finance the cost of the upgrades. The borrower may do this at the time of purchase or as a refinance if the borrower already owns the subject property.

The property must be an existing dwelling that is either being purchased or refinanced by the veteran. For IRRRLs, the veteran may certify prior occupancy as current occupancy is not required.

Acceptable energy efficient improvements include, but are not limited to, the following items: solar heating systems, including solar systems for heating water for domestic use, solar heating and cooling systems, caulking and weather-stripping, furnace efficiency modifications limited to replacement burners, boilers or furnaces designed to reduce the firing rate or to achieve a reduction in the amount of fuel consumed as a result of increased combustion efficiency, devices for modifying flue openings which will increase the efficiency of the heating system, and electrical or mechanical furnace ignition systems which replace standing gas pilot lights, clock thermostats, new or additional ceiling, attic, wall and floor insulation, water heater insulation, storm windows and/or doors, including thermal windows and/or doors, heat pumps, and vapor barriers.

BUY VA FORECLOSED HOMES NOW

VENDEE FINANCING PROVIDES PATH FOR MANY WITH CREDIT CHALLENGES

by John P. Allen

If you're thinking about buying a VA-owned property, Vendee Financing may be an option for you. Unlike VA Loans, which are guaranteed by the Department of Veterans Affairs (VA) and only granted to U.S. Veterans and their spouses, VA Vendee Financing is available to Veterans and non-Veterans alike.

Compared to traditional mortgage loans, Vendee Financing requires fewer fees and less money out of pocket. You'll enjoy the unique benefits of a low - or even no - down payment; no mortgage insurance; no tax service fee; no appraisal fee; and no flood certification fee.

While the fees, terms and requirements are subject to change without notice, at the time of this writing the borrower would pay 2.25% of loan amount to the Department of Veteran Affairs.  The Application fee is just $350.00 which is non-refundable fee and made payable to Ocwen Financial Corporation.

Ocwen Financial Corporation handles the majority of VA Home Foreclosures for the lenders who have them on the books.  They are a leading business process outsourcing provider to the financial services industry, specializing in loan servicing, mortgage fulfillment and receivables management services. In the USA, Ocwen is headquartered in West Palm Beach, Florida with offices in Arizona, California, Florida, Georgia, Illinois and New York.

Who says you have to own a home to live the American Dream?

Renting can actually be better for your bottom line and lifestyle.

Controlling the Asset is the Real Game Here

By John Allen

Before the housing boom went kaput this year, homeownership was widely considered a great investment for our U.S. Veterans. But now, with the increasing rate of mortgage foreclosures and declining home values, renting may be a more effective option. Here’s why;

1. Renting Can Save Money

According to some myth hucksters, renters are just tossing their money away. But in reality when you buy a home, the new home owner is paying for closing fees, mortgage interest, property taxes, private homeowners’ insurance and maintenance.  These costs that return nothing on your investment. You’d be better off banking that money, putting it under a mattress or saving up to buy the new GM Electric VOLT car coming out in 2010.  Or heck, put your money into the stock market and choose world class companies to invest in. 

Includes Akaka’s legislation to boost veterans’ home loans to Stimulus Act level 

WASHINGTON, D.C. – Today U.S. Senator Daniel K. Akaka (D-HI), Chairman of the Veterans’ Affairs Committee applauded Senate passage of H.R. 3221, with the Dodd-Shelby Housing provisions, and noted that the bill incorporated provisions from Akaka’s bill to boost limit on veterans’ home loans, as well as other important housing provisions for current and former servicemembers. 

“We must quickly approve this bill, for veterans and other Americans struggling with the national housing crisis,” said Akaka.  “I commend Senators Dodd and Shelby for developing a housing bill that helps provide shelter for veterans and servicemembers.” 

The Economic Stimulus Act of 2008, passed by Congress and signed into law in February, raised loan limits for Fannie Mae, Freddie Mac, and FHA home loans, but did not include an increase for the VA Home Loan Program.  To correct this oversight, Chairman Akaka introduced S. 2768, which proposed to provide the appropriate increase to the VA Home Loan limits; provisions derived from this bill were included in H.R. 3221.  If enacted, the Dodd-Shelby Housing provisions would provide for this increase throughout the calendar year...

IRS Rules Force Homeowners in Foreclosure to Pay Tax on Income they Never Received

by Amber Franklin

I just received a question from a veteran asking "My house is going into foreclosure, can the lender take my military retirement pay to satisfy the debt?"My first thought was “Wow, that's an excellent question”.  And it’s also a bit complex.  But I will try to make it simple and clear.   

First, your mortgage may be a "recourse" debt mortgage (check your papers).  If it is "recourse" debt mortgage, the lender will send you a 1099 for the difference between what you owe on the property and what they eventually liquidate it for down the road.  In other words, you have to report that 1099 as income and pay the tax on it.  

Yep, it's a screw job!  Stop Yelling! I know! I know!   

PASSAGE OF 2006 SCHUMER/MALONEY BILL ALLOWS VETS TO USE VA LOANS FOR CO-OP APARTMENTS IN NEW YORK CITY

By Frank Lozano, VA Home Loan Specialist at DirectVALoan.com

Until now, NYC Veterans had no hope of owning a residence. VA Loans were only usable for houses, townhouses and condos. Most real estate in New York City are Co-op's. Sen. Charles Schumer (D-NY) and Rep. Carolyn Maloney (D-Manhattan, Queens), long-time champions of permitting VA Loans for Co-ops, back in 2006, hailed congressional action as a major win for NYC Vets.

Before the legislation, VA loans can be used to purchase a house, townhouse, condominium or even a mobile home, but not a co-op. “Without the option of cooperative housing, using VA loans wasn’t realistic for many veterans in New York City,” said Maloney back in 2006. “VA loans should be available for all types of housing - there is no reason New York City co-ops should be excluded.

VA Offers Interest Rate Reduction Refinancing Loans of existing VA Home Loans

by John P. Allen, DirectVALoan.com

IRRRL stands for Interest Rate Reduction Refinancing Loan.  You may see it referred to as a "Streamline" or a "VA to VA."  Except when refinancing an existing VA guaranteed adjustable rate mortgage (ARM) to a fixed rate, it must result in a lower interest rate.  When refinancing from an existing VA ARM loan to a fixed rate, the interest rate may increase.

No appraisal or credit underwriting package is required by VA.  You should be aware, however, that lenders may require an appraisal and credit report anyway.

A certificate of eligibility is not required.  Your lender may use our e-mail confirmation procedure for interest rate reduction refinance in lieu of a certificate of eligibility.

Mortgage Crisis Hits Home For Troops, Veterans
by Gidget Fuentes

CHULA VISTA, Calif. — Air Force veteran Nellie Cooper thought she was following good advice when she refinanced her home’s mortgage with an adjustable-rate loan. For the self-employed real estate agent, it seemed smart.

But her mortgage payments ballooned while local property values dropped, sinking her prospects of refinancing into a more secure, fixed-rate loan. With lenders nationwide tightening eligibility rules, Cooper is finding few that are willing to refinance or rework the loan into something financially manageable for her.

“Nobody will finance 92 percent value of a house, and I am getting more in arrears,” Cooper, who is juggling three part-time jobs to keep her home, told a Nov. 27 public forum led by Rep. Bob Filner, D-Calif. “I’m still … trying to see if I can do something with the lender.”

Cooper, who lives in Oceanside, Calif., found no help from the Department of Veterans Affairs: Except in very rare cases, VA does not refinance mortgages it didn’t sell. She didn’t buy the house through VA because she was told repeatedly she didn’t qualify and the paperwork was “too cumbersome.”

“I was dissuaded by many to take the conventional way” with bank-backed loans, she said...

Veterans Can Fix Their Own Credit Challenges

DIY Software Makes Credit Repair for Veterans Fast, Easy, and Effective

by John P. Allen, DirectVALoan.com

Can Veterans fix their own credit problems? Well, as General Manager of VeteransToday.com, I have been helping Veterans get VA Loans for many years now.  Most of the work is helping veterans position themselves properly so that getting that VA Home Loan is fast, simple, and easy.  

Now, the biggest single reason that I can't help veterans get a VA Home Loan funded is that darn credit score.  Typically, our lenders need a credit score of 580 or better to fund a VA home loan mortgage.  However, too many of our veterans have scores that are lower than this threshold.  Thus, I spend much of my time counseling veterans on how to get that score up.  It's tough on everyone!

Now if the veteran is making lots of money and is a position where they really have no time to invest, they can hire expensive credit counseling services to do it for them.  But really, most of our veterans are not in that position.  So I am always asked, "What can we do to get our credit fixed and our score up?  Well folks, we can do it ourselves and here's how;