Happy Friday! It is hard to believe we are headed toward September. Good questions this week.
- What is the area's maximum loan amount for VA? The maximum loan amount in Hampton Roads is 458,850. If you are retired and deemed 10% or more disabled by VA, your funding fee (charged by VA) is waived. If you are active duty and incur the funding fee, the maximum loan calculation would determine if a small down payment is needed to maintain your 25% guarantee required by VA. VA currently takes the position that if the funding fee plus the purchase price exceed the 458,850 threshold, there may be a small down payment. In most cases and if necessary, the down payment ranges from 1,000-1,500.
- We are first-time homebuyers. I changed jobs about 6 months ago into a completely different field. I have been told I need two years employment in order to apply for a loan. Is this true? If you are a first-time homebuyer and meet the VHDA (Virginia Housing and Development Authority) requirements for income, you need two years employment. It does not need to be in the same field, but it does need to be W-2 income.
- Why do homeowners' association dues have to be included in my monthly payment for your purposes? If you are buying a home or condominium that has dues or fees, they must be included in your monthly payment for debt calculation purposes as it is an obligation and a cost of living in a particular neighborhood or being part of a particular condominium association.
Please feel free to contact me with any questions you might have. I look forward to working with you and your clients. Please remember, I am licensed in Virginia, North Carolina and Florida.