The VA Home Loan Experience
For the good majority of those that have attended college, there are debts to be paid off after you’ve graduated. Tuition costs continue to rise and sometimes it takes more than one loan to pay for those additional costs.
When you’ve had your graduation ceremony, have or have not gotten a job, and six months have gone by you will be expected to start paying those loans back. A college loan consolidation can make that repayment easier on you and your bank account.
There are many companies and banks that offer student loan consolidations. These will take all loans that you have taken during your time in college and combine them into one lump sum. That lump sum will be given one interest rate that will often be less than the interest rate that you’ll get from the loan repayment plan you’re given when you’re close to graduation. You will be able to make smaller payments and work toward the ultimate goal of paying off your student loans.
As you are looking for a student loan consolidation company, be fully aware that there can be huge differences in how their program operates. Be sure to compare costs and interest rates especially. Also be on the lookout for those companies who charge a fee for early pre-payment of the loan they give you, which only serves to lock in the interest that they will be collecting from you on this loan.
Most of the loan consolidation companies will offer an interest rate that is preferable to the one you are paying. If you have more than one student loan, you are paying that interest rate more than one time every month. When it comes right down to it you may end up paying far more than the amount you borrowed if paid over a long period of time.
The consolidation loan will give you the benefit of only paying an interest charge one time per month. This interest rate may be 4 or 5% whereas the student loans that you will be starting to pay back at the end of your six month grace period may be 7 or 8%. Many of the consolidation companies will not have a penalty for early payment, but some of them might. Be sure to find out if this is a penalty before you agree to the consolidation. Be well aware of the details of your payback agreement before you sign the papers for the loan.
Each student loan consolidation company will offer something to appeal to you as a way to earn your business. Find the one that will work the best with your needs and will charge you the least amount of interest. This can save you thousands in the long run and make the payback of your student loan as simple and pain free as possible. Since your goal is to pay off your student loan, the last thing you want to do is rob Peter to pay Paul with another loan, which leaves you in the same situation you are now!
Watch the video related to College Loans Consolidation
Tim Lewis discusses VA Loans and his experiences helping veterans through the VA home loan process at DirectVALoans.com.
Help answer the question about College Loans Consolidation
College loan consolidation and credit score?So, having multiple degrees doesn't stop you from making stupid decisions. I made some very poor decisions related to college loans.
I'm currently finishing grad school, but not a full-time student anymore, so my loans all went into repayment. Working part-time so I still have time to do research requirements. Long story, short: I have MANY loans and never consolidated–got overwhelmed by the payments and ended up 60 days late. Nonetheless, this is now reflected on my credit report. My score dropped about 130 points because of this. It took me YEARS to get my credit bordering between the Good/Excellent range, so I am extremely dissappointed in myself. I know this was stupid.
Anyway, my question – if I consolidate now, will that lead to any improvement in my credit score? Will my 15+ loan marks of "60 days late" just go to one, or won't this make a difference? I will consolidate regardless, but am wondering if this could make any positive change in my score.
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I bought my house on a VA loan. The interest rate was very close to a normal 30 yr mortgage rate, but the money I had to come up with up front was significantly less. There are a few rules, however. You would need to look over the paperwork or talk to the bank to get them all. Here are the big ones: You must occupy the house yourself (no rental properties). You must own the house for a minimum of 2 years. Both of those make it impossible to buy a house with a VA loan for the purpose of "flipping" it. You can only have 1 VA loan active at any time. One big plus – if you sell your house to someone who is eligible to get a VA loan, they can take up your loan at the same interest rate you have!
No you don't need a down payment with VA (them and USDA are the only 2 programs that still have 100% financing). You will be required to pay the funding fee though, but this can be added to the loan amount if you don't have the cash. VA is an excellent program, just make sure you work with someone who has a great deal of experience with VA loans, they can be quite complicated for an inexperienced loan officer.
Yes
A OTH is the most severe form of administrative discharge. This type of discharge represents a serious departure from the conduct and performance expected of all military members. OTH discharges are typically given to service members convicted by a civilian court in which a sentence of confinement has been adjudged or in which the conduct leading to the conviction brings discredit upon the service. OTH discharges can be accepted in-lieu of court-martial proceedings at the service-member's request. Persons facing OTH are guaranteed, by the Uniform Code of Military Justice, the right to have their discharge heard by an administrative discharge board, which is similar to a court-martial but is not a public forum.
Recipients of OTH discharges are barred from reenlisting into any component of the Armed Forces (including the reserves), and are normally barred from joining the Army and Air National Guard, except under rare circumstances which require exception-to-policy waivers. As of September 2006, all 50 states had policies barring the reenlistment of UOTHC discharge recipients.
In addition, the majority of veterans' benefits are not available to individuals who receive an other than honorable conditions discharge, including the Montgomery GI Bill and (in most cases) VA healthcare benefits.
The 2% funding fee is NOT a hidden cost, it is a STANDARD cost that is charged to all first-time veterans financing a VA loan.
It is charged in lieu of the customary PMI (Private Mortgage Insurance), which is a very good deal for 100% financing.
VA loans have more stringent requirements for the LENDER than other types of loans. VA does not permit a lender to charge alot of the junk fees that are charged on other loans.
Loan ratios are also 42% for front AND back end ratios…this is what makes them different from most other loans as well, and easy to obtain.
The credit requirements for a VA loan are the same as FHA.
The biggest difference with a VA loan is that the lender doesn't have control of the appraisal….a lender has to order the appraisal through a VA portal online, and the appraisal is dispatched to a VA-approved appraiser.
You also need to be prepared to provide a Certificate of Eligibility as well as other special documents that are unique to VA loans.
The HUD-1 settlement statement also must go to the VA office for approval prior to closing…this makes last-minute changes to a mortgage loan impossible, so it's important to have everything the lender asks for a minimum of 7 days prior to closing.
My recommendation is to find a Loan Officer that SPECIALIZES in gov't loans. This is not the same as "we do them". Make sure they are thoroughly familiar with the process. If they are, it will go smoothly.
Good Luck.
Yep, thats the way it is. Va inspectors are very tough! Good luck.
The limit will be the Freddie Mac conforming loan limit in California, which is currently $417,000.
No experience using one, just brokering them. If you are eligible, it's most likely going to be your best choice for a home loan, if you have limited or no down payment.
Its pretty straightforward.
The appraisal and inspection will be a little more consrrvative than normal. The VA want to make sure the property is immediately habitable and will check a dozen or so "health and safety" issues to make sure (mostly common sense).
The biggest issue for most is that you will have to cover about $1200-$1500 of their closing costs, so make sure you take that into consideration when you review their offer.
A credit score shouldn't matter much unless you've really tanked your credit. all a VA home loan is, Is the a certificate showing, that for your valuable service to the nation, the Veterans Administration will guarantee your loan for up to the amount the financial institution will loan you, in the event you default on the loan. The VA will take the note and the bank won't lose money on it.