QUAD CITIES REAL ESTATE WITH RE/MAX

SERVING THE ENTIRE IOWA AND ILLINOIS QUAD CITIES ............................................................

DAVENPORT - BETTENDORF - ROCK ISLAND - MOLINE AND SURROUNDING COMMUNITIES

TOM & CYNDEE BROWNER - CRS, ABR, GRI

BROKER ASSOCIATES SERVING IOWA & ILLINOIS - 319-332-9900 EXT 225

Call us on our private line at 332-1130 - RE/MAX RIVER CITIES, or Contact us at tom&cyndee@quadcitiesrealestate.com Have a real estate question? The answer is just a phone call or E-mail away. Buying or Selling a home is an important financial decision. WHEN YOUR MONEY MATTERS, be careful and check out who you are dealing with. You deserve the best information and service available. If you would like to know what you should expect, check out our Buyer Representation or Seller Representation pages.

VETERAN'S ADMINISTRATION GUARANTEED MORTGAGE

This is a Federal program to guarantee loans to the banks that they might not otherwise choose to take. Veteran's have served their country in one of the branches of the armed services. They are then assisted in purchasing a home. Just as in the military, these buyers are held to a higher standard. Like FHA they are allowed a 41% long term debt to gross income ratio. The exception is that they are still required a per diem residual income per family member. These buyers usually have less money, less time on the job than conventional buyers. Due to their service to their country, they are allowed to purchase a home with zero down.

They have a VA funding fee which is like Private Mortgage Insurance in other loan programs. The difference is that this fee is on a sliding scale based on down payment and whether a previous VA loan has been issued to the Veteran. This fee is added to the principle amount being borrowed and there is no other Private Mortgage Insurance charged. Like FHA, VA interest rates are set by the Federal government. Like FHA they may be 1/8 to a 1/4 percent higher than conventional rates.

As a rule, the loan guidelines are slightly higher on the home because they are easier on the buyer. The VA appraisal not only guarantees that the value being offered is proper on the home, but that the roof, furnace, grading, foundation, etc. have a reasonable short term life expectancy. This is because the Veteran's Administration realizes that if the buyer did not have a good down payment, that they also probably do not have the money to put in a new furnace or put on a new roof right away. So the property guidelines are a little more stringent on the home.

Finally, VA allows you to have a higher debt to income ratio, 41% versus a conventional 36 to 38%. This allows you to buy slightly more home now. See Buyer Self Qualification

CURRENT VA LIMIT TO PRICE OF A HOME IN THE QUAD CITIES

Scott, Muscatine, Johnson, Clinton Counties

Single Family Housing ---------------------------------- $140,000      Interest now at 6.5%/30 year

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FOR LENDER ASSISTANCE CALL PAM ESSNER - FIRST STAR AT 383-416 OR 570-1337