No Money Down VA Loans available for Military Veterans in Minnesota,

Wisconsin, Iowa and South Dakota!!

****Below is a overview on the benefits of a VA Loan and how the process works.  Since all of our consultations and pre approvals are free you should contact us first to get started.  We will have one of our licensed loan officers walk you through the process and get you ready to buy or refinance a home.  

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1) VA Loan Overview

Who’s Eligible for a VA Loan?

• Veterans
• Active duty personnel
• Certain reservists and National Guard members
• Surviving spouses of persons who die on active duty or die as a result of service-connected disabilities
• Certain spouses of active duty personnel who are (a) missing in action, (b) captured in line of duty by a hostile force, or (c) forcibly detained by a foreign government or power

How does a VA Loan Work?

You get your loan from a private lender like American Mortgage & Equity Consultants, and VA “stands behind” the loan with that lender. If something goes wrong and you can’t make the payments anymore, the lending institution can come to us to cover any losses they might incur. The VA loan guaranty is this “insurance” that we provide the lender.

Most loans are handled entirely by lenders like American Mortgage and Equity Consultants. VA rarely gets involved in the loan approval process.

What VA Loans Can Do for You

Here are some advantages of the VA program:

• You can buy a home without a down payment ($0 Down) - as long as the sales price doesn’t exceed the appraised value. (Of course, you have to qualify in terms of income and credit.)
• You won’t need to buy private mortgage insurance.
• VA rules limit the amount you can be charged for closing costs.
• Closing costs may be paid by the seller. (You should keep this in mind when negotiating the sales price.)
• The lender can’t charge you a penalty fee if you pay the loan off early.
• VA may be able to provide you some assistance if you run into difficulty making payments.

You should also know that*****

• You don’t have to be a first-time homebuyer.
• You can reuse the benefit.
• VA-backed loans are assumable, as long as the person assuming the loan qualifies.

Size of the Loan

VA doesn’t specify a maximum loan amount. But the law does set limits on the amount of liability we can assume. This usually affects the amount of money an institution will lend you.

The lender may be able to increase the size of the loan if you can make a down payment.

When the lending institution is deciding how big a loan you can afford, it uses either of two methods:

• One Method is the “residual income calculation.” The lender adds up your routine housing expenses, taxes, and additional debt payments such as your car and credit cards. He or she subtracts this total from your income. Then the lender decides whether you’ll have enough money left over for everyday living.
• The second method is the debt-to-income ratio. Under VA’s rules, this is the ratio of your total debt (both housing and other debt) to your income. For more information on how lenders use these tools to complete a Loan Analysis, visit the VA Lender’s Handbook, Chapter 4, Topic 9.

This is just a thumbnail sketch. A VA-approved lender like us is the best resource to see how large a loan you qualify for. In making a decision, the lender must look at income (amount and stability), credit, and "compensating factors." Lenders may use certain automated systems to help with their decisions.

Your Costs

The VA Funding Fee. Although we don't require private mortgage insurance we do charge a funding fee. (This can be folded into the loan.) If you receive service-connected disability payments each month, you're exempt from the fee. For more information on the VA Funding Fee and who is exempt, visit the Lender’s Handbook, Chapter 8, Topic 8. 

Other Costs of the Loan. Other costs will be involved. Of course, the lender charges interest. And some other fees and charges have to be paid at closing. Here are some general rules:

• The lender, not VA, sets the interest rate, the “discount points,” and closing costs. These rates may vary from lender to lender.
• The seller can pay for some closing costs. (Under our rules a seller’s “concessions” can’t exceed 4% of the loan. But only some types of costs fall under this 4% rule. Examples are: payment of pre-paid closing costs, VA funding fee, payoff of credit balances or judgments for the veteran, and funds for temporary “buydowns.” Payment of discount points is not subject to the 4% limit.)
• You’re not allowed to pay for the termite report, unless the loan is a refinance. That fee is usually paid by the seller.

Basic Requirements

• You must live in the home as your primary residence.
• You must qualify in terms of income and credit. You could be turned down if you’ve had problems with credit or your income is not considered stable.

2)Steps in the Process of Getting a VA Home Loan (Let us help)

Getting a VA-backed loan - or any home loan - takes some time. The process has a few steps.

There are 8 basic steps to getting a VA-backed home loan. Each step contains a few details, and some steps may overlap. What follows is just a quick overview.

1. You find a real estate professional to work with. Perhaps a friend has someone to recommend. Or you could contact us for referral to an experienced local realtor.
2. You locate a lending institution that participates in the VA program(American Mortgage & Equity Consultants). You may want to get "pre-qualified" at this point - that is, find out how big a loan you can afford. Lenders set their own interest rates, discount points, and closing points. So you may want to shop around.
3. You obtain your Certificate of Eligibility. The lender can probably get you a certificate online( Contact AMEC Loan Officer for Help). Or, you can apply online yourself. Applying for a Certificate of Eligibility Online: Instructions. 
   If necessary, you can download a hard copy application form:
   • For veterans, active duty, reservists, and Guard members
   • For surviving spouses
4. You find a home you want to buy:
   When you negotiate, make sure the purchase and sales agreement contains a "VA option clause" Here's a sample wording:
   "It is expressly agreed that, notwithstanding any other provisions of this contract, the purchaser shall not incur any penalty by forfeiture of earnest money or otherwise of be obligated to complete the purchase of the property described herein, if the contract purchase price or cost exceeds the reasonable value of the property established by the Department of Veterans Affairs. The purchaser shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established by the Department of Veterans Affairs."
   You may also want the agreement to allow you to "escape" from the contract without penalty if you can't get a VA loan.
5. You formally apply to the lender for a VA-backed loan. The lender will complete a loan application and gather the needed documents such as pay stubs and bank statements.
6. The lender orders a VA appraisal and begins to "process" all the credit and income information.
   (We want to stress one point here. VA's appraisal is not a home inspection or a guaranty of value. It's just an estimate of the market value on the date of the inspection. Although the appraiser does look for obviously needed repairs, VA doesn't guarantee the condition of the house. The appraiser, who is licensed, is not a VA employee. The lender can't request a specific appraiser; assignments are made on a rotating basis.)
7. The lending institution reviews the appraisal and all the documentation of credit, income, and assets. The lender then decides whether the loan should be granted.
8. Finally, the closing takes place and the property is transferred. The lender chooses a title company, an attorney, or one of their own representatives to conduct the closing. This person will coordinate the date and time.