Tax Credit Extended for Returning Veterans…
You may qualify for up to an $8000 tax credit if you or your spouse were on qualified official extended duty outside the United States for at least 90 days during the period beginning January 1, 2009 and ending before May 1, 2010, and were a member of the uniformed services or Foreign Service or an employee of the intelligence community (defined below) during the time period in above.
In order to qualify for the tax credit you must have an accepted offer to purchase a home by April 30, 2011 and close before July 1, 2011. Get the facts from the IRS: www.IRS.gov Search for Form 5405
In addition to receiving the tax credit, eligible Veterans can obtain a VA mortgage. Here’s some basic info on VA mortgages:
1. No Down Payment is required.
There is no down payment needed for a VA loan. The veteran can choose to make a down payment. But it is not a requirement
2. All Closing Costs can be paid by the seller.
The VA loan has similar closing costs as other loan programs. Things like Homeowners Insurance, Title Insurance, Inspection Fees, Appraisal Fees, Escrow Fees, Taxes etc. But with a VA loan, the buyer can negotiate for the closing costs to be paid for by the seller. With a VA Loan it is possible to make no down payment and have the seller pay all your closing costs. The Veteran can get in for no money at all!
3. The VA allows up to a 50% debt ratio. Up to 50% of the Veteran’s gross monthly income (including a spouse’s income if they are on the loan) can go toward the new housing payment, car loan payments, student loan payments, other loan payments, minimum payments due on credit cards and other obligations like child support or alimony. This is a fairly generous guideline. The VA does test this guideline by looking at a minimum residual income for each Veteran and the more conservative guideline applies.
4. Credit scores of just 620 are acceptable. Generally if the Veteran pays his debts on time and does not have past due balances or collection accounts, they are all set. If there is collection debt on the credit report, generally it will be required to be paid off at or before closing.
5. Veterans know if they are qualified because they have a COE (Certificate of Eligibility). If you are not sure if you qualify for a VA loan, you can go to the VA’s website and apply for a COE.
6. For more information on VA loans, check out our website at WWW.AmazingLoanLadies.com