When the tax credit for first time home buyers and repeat buyers was extended, there was a special rule for members of armed forces, uniformed services, Foreign Service and the intelligence community. What this special rule says is if you have official orders outside the United States for at least 90 days from 12/31/2008 to 5/1/2010, the tax credit is extended one year. So if you were outside the U.S. for 90 days, you can still get the tax credit as long as you sign your purchase contract by April 31st 2011 and close by June 31st 2011. This is excellent for those members of active military who want to get a VA loan with 100% financing to buy a home.
If you have not read about the $8,000 federal tax credit, it is a temporary credit for first time home buyers and move up home buyers the Government has created to stimulate the economy. In short, it is an incredible deal that has never happened before. As soon as you close on your house, you file a form with the IRS and you home closing statement and as long as you paid at least $8,000 in federal taxes the prior year, the IRS will cut you a check for $8,000. You can amend your previous year’s returns and get the tax credit immediately, or you can take the credit at tax time for the current year. So you will get a check for $8,000 after you close to do with as you please. This can be great for decorating your new house very nicely, paying off debt or doing with it as you please!
Keep in mind some of the wonderful advantages of VA loans for active military or veterans:
- If you qualify VA loan it is a 100% financing zero down loan. It is the only 100% financing mortgage loan available today. The next best is FHA with 3.5% down.
- VA loan 30 year fixed interest rates are still very, very low compared to historical norms
- California VA loans available with 100% financing all the way up to $600,000, $700,000 and beyond depending which county you buy in California. This allows you to buy with VA 100% financing even in coastal areas such as San Diego, Los Angeles, San Jose, San Francisco and Orange County. A VA loan over $417,000 is a jumbo VA loan.
- VA loan credit scores do not have to be perfect, you just need a 600 score to qualify.
- You can get a second VA loan (and 3rd, 4th, etc…) even if you have had a VA loan before, but you can only have one at a time.
- VA loan benefits include a waived VA funding fee for veterans if you receive any VA disability pay. This is a savings of thousands and thousands of dollars
- VA lending has NO monthly mortgage insurance. You have to put 20% down to get any other type of mortgage with no monthly mortgage insurance.
Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions or want to apply for a VA loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and VA specialist)
858-922-7899
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