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New Mortgage Product For Military

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Non Sequitur

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Feb 14, 2002
Professional Status
Certified Residential Appraiser
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Louisiana
Originally posted by Pamela Crowley (Florida)@Jun 4 2003, 05:07 AM
Sounds like they are finding a way around the VA appraiser.
No it doesn't. But I'm sure that's what some VA appraisers think. Never mind that the article never mentions "appraisal" or "appraiser".

"Families who have already used their VA mortgage eligibility incur additional fees to originate another VA loan, making the conventional Home Front Mortgage product an affordable alternative," said E.D. Latimer, executive director of Affordable Housing Resources.

Seems clear to me. It's about offering an affordable alternative for veterans and active duty personel. What's wrong with that?
 

Tom McDowell

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Gvmt Agency, FNMA, HUD, VA etc.
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North Carolina
Let me see if I understand it right. We are going to let the lender select the appraiser, then we are going to finance 100% of the loan and then as an added bonus we are going to let them borrow additional funds to help pay closing costs. Lets assume the closing costs on a $100,000 is 2% with out real estate commission, and the typical military family stays at a duty station for 3 to 5 years. With a 3% growth per year for 3 years the veterans home should be $109890. Our veteran, that we are helping out, borrowed $108695 when he bought his castle that means he will have to get $119445 to dump that shack. That looks like $10,000 he has got to find somewhere and that don't include the real estate commission and closing costs he will have to pay at closing. So if there is not an appraiser that is having a slow month or can't stand up to pressure from a lender or is just plain dishonest the it looks like we have another foreclosure and a veteran with ruined credit.

If we are going to continue to lend 100% we must stop allowing the veteran to finance the closing costs or the VA funding fee! In fact there should not be a funding fee for anyone that has served where he drew danger/hazardous duty pay.

Just my thoughts for today.
 

Mike Garrett RAA

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Jan 14, 2002
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Colorado
I am not worried! $5,000,000 in that market? How many loans would that be? If the average value there is, say, $200,000.....that's what 25 deals??? What I saw in the articule is that it looks like it is designed for vets who have already used their eligibility.

Has anyone heard what is happening with H.R. 1500? Sure got quiet all of a sudden.
 
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