$1290 Federal VA Fee Waiver for Veterans Continues in June

I’ve yet to meet a veteran who wasn’t aware of the Federal VA program. Through it, qualifying veterans have the opportunity to purchase a home with no down payment.

In honor of Memorial Day, Guaranteed Rate is waiving our lender fees on Federal VA loans throughout the month of June. That’s our $1290 way of saying “thank you for your service” to our veteran clients.

Oregon’s own VA loan

But did you know Oregon Department of Veterans Affairs (ODVA) offers a home loan program, too? Lots of veterans seem not to know this.

Only 12 states offer a veterans home loan program. The Oregon program has been around since 1946 and was at one time the largest lender in the State.

Interest rate time machine

Check out the current interest rates by clicking here. Go ahead… I’ll wait. Wow, right? It’s like an interest rate time machine… in June 2018, veterans can still secure fixed rate loans that start with a “3” like it’s still 2016, right before the election.

To be eligible for the lower, “QVMB” funds, a veteran must have been discharged from service within 25 years, as of the date of their rate lock.

Determining Eligibility

Qualifying for the program begins with establishing your eligibility. Just fill out an Eligibility Application and upload it to the ODVA here, along with copy of your DD214. If you meet the eligibility criteria ODVA will issue an Eligibility Letter.

To be eligible you must have served on active duty with the US Armed Forces (as documented on a DD214) and meet one of the following service criteria:

Option 1:

• Beginning on or before January 31, 1955 served more than 90 consecutive days and was discharged or released under honorable conditions; or

• Beginning after January 31, 1955 served more than 178 consecutive days and was discharged or released under honorable conditions; or

• Served 178 days or less and was discharged or released under honorable conditions because of a service-connected disability; or

• 178 days or less and was discharged or released under honorable conditions and has a disability rating from the United States Department of Veterans Affairs;

• Served at least one day in a combat zone and was discharged or released from active duty under honorable conditions.

Option 2:

• Received a combat, campaign or expeditionary ribbon or medal for service and was discharged or released under honorable conditions.

Option 3:

• Is receiving a nonservice-connected pension from the United States Department of Veterans Affairs.

A lifetime benefit — with a catch for career service people

Did you notice the bummer for career members of the service? If you are active duty and have never been discharged, you are not (yet) a veteran and, therefore, are not eligible for the program.

You can use the program up to 4 times in your lifetime.

Property Eligibility

Eligible properties include single-family residences, townhomes or condos located (of course) in the state of Oregon. Properties with 2-4 units or an ADU are ineligible and refinances are ineligible. Also worth noting, home office use is not permitted.

There is no limit to the purchase price of the property, but the maximum loan amount is the current Fannie Mae loan limit–currently $453,100.

Don’t check that “VA” box

When writing an offer for your home, you’ll check a box indicating what type of financing you are obtaining. When using the ODVA program, you should mark the “conventional” financing. The Oregon VA loan is not a Federal VA loan. Rather, it is a conventional loan at a below market rate for qualifying veterans.

This distinction can be important (and very helpful) when you write an offer–especially if you are competing with other buyers. Sellers sometimes shy away from accepting offers with Federal VA financing. VA loans have a reputation for having more stringent requirements for the condition of the property, risks associated with the appraised value and taking longer to close. Not all of these worries are entirely valid, but they can give a seller a reason to accept another offer. You may have better odds of getting your offer accepted with conventional financing.

Loan options start at 5% down

ODVA loans are underwritten according to Fannie Mae guidelines. So unlike a Federal VA loan, a down payment is required. The minimum down payment option is 5%. And, if you put less than 20% down you will have to pay for private mortgage insurance.

Compare your options

If you are a veteran, looking for a home loan, make sure you work with a lender that offers both the State and Federal VA loans… and don’t forget to review all the non-VA loans for which you are eligible.

My team and I can help you learn your options, discuss the pros and cons of each and find the very best loan for you!

Call 503-799-3711, email juleef@rate.com or navigate your way to www.rate.com/juleef to get started.

Waived lender fees available for VA loans that have a triggered RESPA app date as of May 1st, 2018 through June 30, 2018 at 11:59pm EST. RESPA is a federal statute to clarify and outline the settlement process and fees to borrowers and to mandate that all parties fully inform borrowers about all closing costs, lender servicing and escrow account practices, business relationships between closing service providers and other parties to the transaction. Not all borrowers will be approved. Borrower’s interest rate will depend upon the specific characteristics of borrower’s loan transaction, credit profile and other criteria. Contact Guaranteed Rate for more information and up to date rates.

Rates and APRs mentioned are for informational use only, and are provided by the Oregon Department of Veterans’ Affairs. Rates are subject to change.

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Guaranteed Rate for current rates and for more information.

Guaranteed Rate, Inc. is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture or any other government agency.

All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate, Inc. does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate, Inc. Guaranteed Rate, Inc. its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.

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