I’ve seen a lot of tips by so-called mortgage industry experts giving Vets advice on how to buy a house. So I’m here to set the record straight.

Tip #1:

The number one tip for a vet buying a house is to use a VA loan. Plain and simple.

Benefits of the VA loan, to name a few:

• 100% financing
• All loan costs can be paid by the seller
• VA loans have lower than industry average mortgage interest rates
• No mortgage insurance
• Lenient qualification requirements

Tip #2:

Be proactive. If you have not heard from your VA loan officer in a few days, don’t be afraid to call or send an e-mail to find out what is going on.

Tip #3:
Be organized. Keep a folder for all documents that you will be required to provide your loan officer. Also keep copies of all communication between you and your loan officer.

Tip #4:
Be available. Your loan officer needs to be able to get ahold of you at all times during the day, so be prepared to take calls at work or on your cell phone.

Tip #5:
Ask questions. If you are confused or have concerns during the loan process do not hesitate to ask questions. If you wait until the end, it may slow the process down.

By the way, if you’re not a vet, omit tip number one. Everything else is good advice for anyone in the home buying process. And forget about those mortgage industry experts.

1) Looking for a struggling real estate agent who wants to be a free video blog guinea pig – If you have wanted to add video to your blogging, but not sure what to do this may be a chance for you to do so.

2) Why I think the $8000 tax credit will be extended – I tend to agree it will be extended.

3) VA loans offer 100% financing – If you served in the military you really should consider using a VA loan. I have personally used them for myself in the past and believe they are a great deal.

4) Another internecine debate: Home search registration – Because this topic has not been debated enough over the last 72 hours.

5) Lookie loo or genuine buyer – how do you tell? – There are a lot of buyers out there in today’s market, how do  you tell the real ones from the tire kickers?

Top 5 real estate posts for 6/5/20091) How does Teresa Boardman post ever day to her real estate blog? – Most bloggers will agree, the most important aspect of blogging is consistency, but it also may be the most challenging. Teresa Boardman is one of the most consistent bloggers and she shares some of her secrets.

2) VA Loans offer 100 percent financing – There are few 100% financing options left in today’s market. One of those options is a VA loan if you qualify. The VA loan is a great option for veterans, but not the only 100% option. If your new home qualifies you can also check into a USDA loan.

3) California tries to deter loan modification and foreclosure rescue scams – With a new $100k bond being required, California looks to squash scam artists looking to make a quick buck in the loan modification business.

4) The $100k email – As real estate agents we are sometimes trusted with our clients personal information. This is a good reminder to respect that information.

5) Nest’s signs rock – Just a very cool idea for real estate yard signs.

Thank you to Justin and Tammy McHood at the Arizona Mortgage Team for submitting this guest column.

If you are in the market to buy your first home, congratulations! In the ups and downs of the real estate cycle, we are currently in a buyers market because inventories are high and interest rates are low. One of the most common questions we get from first time home buyers is “what does it take to qualify for a loan?” and the answer to that question really depends on each individual situation.

In today’s market, the three most commonly used loan programs for first time home buyers are USDA loans, VA loans and FHA loans.

USDA Loans
The USDA loan is a great loan program if you are considering buying a home in an area that has been designated “rural”. Generally speaking, if the area that you are interested in living is in Maricopa or Pima county, it will probably not qualify for a USDA loan – but if it is in the State of Arizona and is not in Maricopa or Pima county, there is reasonably good chance that the property will qualify for the USDA program.

Here is a map where you can see if a specific property qualifies for the USDA loan program.

A few of the highlights of the USDA loan program include:

• A total of around $200 is required out of pocket (as close to “no money down as I know of right now)
• Need above a 620 middle credit score
• Property must be designated “rural” by the USDA
• Need to meet income guidelines

FHA Loans
The most popular loan option for first time home buyers is the traditional FHA loan. In recent years as other mortgage programs have been eliminated by lenders, the FHA loan is now as popular as it ever has been.

With FHA loans, you have a choice of 3 basic loan programs, the 1 year adjustable rate loan, a hybrid adjustable rate loan and the 30 year fixed rate loan. Right now, the FHA fixed rate loans are by far the most popular option because fixed rates are close to the same interest rate as the adjustable ones are – and sometimes even lower!

A few of the highlights of the FHA loan program include:

• 3.5% down payment required
• Seller may pay other closing costs such as discount points, 2/1 buydown account, etc.
• Need above a 580 middle credit score
• Must be primary residence

VA Loans
In order to qualify for a VA loan, a veteran must meet the eligibility guidelines set by the Department of Veterans Affairs. VA Loans enable veterans that qualify to put no money down on a mortgage loan up to $417,000 in Arizona.

As with both the FHA and the USDA programs, the VA program is more popular this year than last year – mostly due to the elimination of many first time homebuyer programs. I would also expect to see a rise in the number of VA loans being done now that FHA requires a 3.5% down payment and VA still allows up to 100% financing.

A few of the highlights of the VA program include:

• A VA loan requires a funding fee that can either be paid by the borrower or may be allowed to be financed into the loan. This funding fee may also be waived under disability guidelines established by the VA.
• VA loans can finance single family residence home, condominium or manufactured home Need above a 580 middle credit score, but it must be your primary residence
• Must have a valid Certificate of Eligibility (COE)
• Must be your primary residence

As a summary to the three most popular programs for first time homebuyers, here are some of the most popular “rules of thumb” as it relates to picking the best financing option for your new home:

Are you a veteran? Go with a VA loan.

Are you interested in living in a property that has been designated as “rural”? Go with a USDA loan.

Are you wanting to buy a home with little or no money down? Go with a USDA or VA loan.

Do you have at least 3.5% saved for closing costs and have a credit score below 620 but above 580? Go with a FHA loan.

Do you have a credit score below 580? Plan on spending time getting your score above 580 to be able to qualify for any kind of loan.

By using one of these three great loan programs for first time home buyers, it is still possible to find a great home, buy it for a below-market value, lock in a historically low interest rate and have immediate equity in your home. As with everything, all good things must come to an end and if you are a first time home buyer, don’t miss out on this golden opportunity!