Veterans of the Armed Forces have access to one of the best mortgage loan programs ever offered: the VA Loan. Only Vets and eligible active duty and reservists (and qualified family members etc.) are allowed to participate in this mortgage program as a reward for their military service on behalf of the US. There are a variety of VA Loans available. Below is a brief list and explanation of the VA mortgage programs available.

Available VA Loan Programs

30 year Fixed Rate Mortgage – this mortgage program is similar to other 30 year fixed mortgage programs. The interest rate for this program is fixed throughout the term of the mortgage. It is a very stable program and it is the most common mortgage program in the US.

Adjustable Rate Mortgage – this mortgage program typically has a short fixed rate period (1 year to 5 years are most common) followed by a longer period of time where the interest rate can change (and most likely will) on a monthly or annual basis. The interest rate change is based on the type of ARM you got, the margin and the index. Make sure that you completely understand the particulars of your VA adjustable rate mortgage if you decide to get one. Your loan officer should explain this information in detail.

Refinance Streamline – this VA mortgage program is only available to those who already have a VA home loan. This program provides a way for a VA mortgage to be refinanced without much needed in the way of loan qualification requirements on behalf of the loan applicant. Although little is required by the VA to qualify for this mortgage program, individual lenders can add in their own requirements. As of 2010, some lenders are requiring VA streamline refinance customers to get an appraisal, document income, and/or provide a full credit history.

These are the most common VA mortgage loan programs. Make sure you check with your VA lender before you get started on a mortgage program. Know what is required of you before you start trying to get a VA loan. Not every VA mortgage lender is the same.

For many Veterans who currently have a VA loan and a poor credit score, whether or not they can participate in the Alabama VA streamline refinance is not really all that clear cut. According to VA streamline guidelines from VA, as long as they have a good mortgage payment history, they can still particpate in the VA streamline program no matter what their credit score.

But…

Many lenders across Alabama now require a minimum credit score, which can be a factor – possibly a big factor. You see, VA doesn’t actually lend you the money, they only insure your loan. So if a lender has a credit score requirement for the VA streamline refinance program, then it will apply.

But there is some good news.

Because the requirements as to whether or not there is a minimum credit score requirement on a VA loan is an individual lender decision and requirement, if one lender has the minimum credit score requirement – it doesn’t mean that they all do.

So if you are an Alabama Veteran who has a poor credit score but a good mortgage payment history, be sure to shop around for Alabama lenders who can loan money under the VA streamline program guidelines and don’t require a minimum credit score.

You might be surprised at how easy it is to find one!

All across Alabama, people are thinking about buying their first house thanks in part to the new 8000 first time home buyers tax credit from the Federal Government. For people who are thinking about buying their first home, now is a great time because with the downturn in the Alabama housing market – as well as across the US — there are many bank owned properties that banks are willing to sell at deep discounts.

So if you are thinking of buying your first home here in Alabama, be sure that you know the answers to the most commonly asked questions about the 8000 tax credit.

Federal Housing Tax Credit.

Since some people like to watch videos rather than read, we also found this helpful video:

These answers may not be to every question that you may have, but below are some of the answers to the most popular questions that people have here in Alabama about the 8000 tax credit for first time home buyers:

1. Who is eligible to claim the tax credit?
2. What is the definition of a first-time home buyer?
3. How is the amount of the tax credit determined?
4. Are there any income limits for claiming the tax credit?
5. What is “modified adjusted gross income”?
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
7. Can you give me an example of how the partial tax credit is determined?
8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
9. How do I claim the tax credit? Do I need to complete a form or application?
10. What types of homes will qualify for the tax credit?
11. I read that the tax credit is “refundable.” What does that mean?
12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
16. I am not a U.S. citizen. Can I claim the tax credit?
17. Is a tax credit the same as a tax deduction?
18. I bought a home in 2008. Do I qualify for this credit?
19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?