VA Loan Book · The spouse of a Veteran can also apply for home loan eligibility under one of the following conditions: an un-remarried spouse of a Veteran who died while in service

Aligned Mortgage

a Division of American Pacific Mortgage Corporation NMLS 1850

Veteran-Led and Deep rooted in the Communities in Which We Serve

We are passionate about ensuring that everyone who has defended our country has the chance to own a piece ofit. Our goal is to provide education, transparency and unparalleled service to our nation’s heroes when it comes time for them to purchase or refinance a home.

We bring to the table many years of mortgage industry experience and unparalleled VA lending expertise. Our main focus is providing education to buyers and real estate partners alike. We are proud to be your resource in all aspects of the VA home loan.

Attend One of Our Free Seminars

At Aligned Mortgage, it is our mission to arm military and veteran home buyers with clear and actionable information so

they are empowered to use their VA home loan entitlement to own a piece of the land they have defended. Attending one

of our free seminars is the first step in attaining home ownership.

Sign Up Today!

www.AlignedMortgage.com

Branch Managers: Chris Cano, Tony Dias,

NMLS# 879294, NMLS# 222836

ABOUT VA HOME LOANS

THE LOAN IS YOUR BENEFIT!Whether you or your spouse has served, or are currently

serving in the United States Armed Forces, your

commitment has earned you the right to own a

piece of the land your family has fought to defend.

You can use your VA Home Loan Benefit to

purchase a home anywhere in the United States

and its territories, including Puerto Rico, Guam,

Samoa, The Northern Mariana Islands, and the US

Virgin Islands.

NO DOWN PAYMENT REQUIREDThe VA Home Loan allows for zero down payment

home buying power ranging from $417,000 to as

high as $726,525, which is the County of

Honolulu limit. Your loan officer can tell you

specifically what the 100% financing maximum is

in your area. While Conventional financing

requires 3% to 20% down and FHA requires 3.5%

down, the VA Loan requires nothing down.

However, you can go as high as high as

$1,500,000 on a VA Home Loan with the

necessary down payment.

FLEXIBLE UNDERWRITINGThe VA Home Loan has very flexible underwriting

compared to conventional and other types of

home loan financing. Credit score requirements

are also lower with VA Loans than with other

home loan products.

VA Loans allow for higher debt to income ratios

than other types of home loan financing. In some

areas, this could mean a borrower can qualify for

tens of thousands of dollars more for a home

than conventional financing.

⌂ABOUT ALIGNED MORTGAGE HOME LOANS

Our mission is to aggressively serve veterans and their families through

education and facilitation of the VA Home Loan Benefit, while advocating for our

local military and veteran community.

In doing so, we will help them achieve the American dream of home ownership,

while also introducing them to the builder of their forever home.

Aligned Mortgage is not affiliated with any government agencies, including the VA. See full disclaimer on page 13. Page 2

There is usually a rate that will allow for the lender to cover your closing costs besides the VA

Funding Fee (Yes, there are closing costs associated with a VA Home Loan). You will have an

option to pay points, or fractions of a point, to buy down your rate, pay zero points at a higher

rate, or take a higher rate with a rebate pricing that allows the lender to provide credits for

closing cost credits.

Lets see how this works by looking at a rate chart. Please note, this is an example only and is

not a current reflection of market rates.

NO CLOSING COST

OPTIONS AVAILABLE

• Zero Down Payment Required to County Limit

• Flexible Underwriting & Credit Score

Requirements

• No Closing Cost Options

• No Monthly Mortgage Insurance

• VA Jumbo Loans Available

VA PURCHASE HOME LOAN HIGHLIGHTS

Aligned Mortgage is not affiliated with any government agencies, including the VA. See full disclaimer on page 13.

Interest Rate Cost or Rebate

Points or Fractions of

Points Charged

4.125%

3.75%

4%

1% goes to you to cover

closing costs considered a

0 Additional closing costs

1% of your loan amount in

additional closing costs

-1 Point

0 (No Points)

1 Point

Page 3

NO MONTHLY MORTGAGE INSURANCE

In low down payment situations, Conventional, FHA, and USDA Loans all typically require

monthly mortgage insurance premiums. Mortgage Insurance does not help you as a borrower

in any way. It insures the lender against your default and you pay a monthly fee as basically an

insurance payment.

For Conventional Loans, you can get away from the Monthly Mortgage Insurance by either

putting 20% down or coming up with a down payment and second mortgage combination.

Here are some facts when comparing the VA Home Loan to Conventional Home Loan

Financing:

All loans have closing costs, even VA Loans. However, the loan typically has a rate option to

allow you to get those closing costs covered equal to the amount of rebate pricing you get in

the interest rate chosen on your loan.

• Zero Down Payment Available

• Upfront Funding Fee

• No Monthly Mortgage Insurance

• Financed Lender Credits for Closing Costs

Possible- typically not a large increase in

interest rate

VA HOME LOAN FINANCING

CONVENTIONAL HOME LOAN FINANCING

• 3%-5% Lowest Down Payment Options

Typically

• No Upfront Funding Fee

• Monthly Mortgage Insurance required if

less than 20% Down Payment

• Financed Lender Credits for Closing Costs

but rate adjustment is typically higher then


24 MONTH RULE

OTHER ELIGIBLE BENEFICIARIES

Individual with service as members in certain organizations,

such as Public Health Service Officers and CDC, Cadets at

the United States Military, Air Force, or Coast Guard

States NavalAcademy, midshipmen at the United

Atmospheric&OceanicAcademy, officers of National

IIWarWorldwithseamanmerchantAdministration,

Service, and others.

Current Active Duty with 90 days of continuous service. All Veterans who have served Post-

Vietnam War with 181 days of continuous service. Also, Veterans who served in WWII for

90 total days, post WWII for 18 continuous days, and the Korean War for 90 total days.

WHO IS ELIGIBLE FOR A VA HOME LOAN?

Veterans who serve from

9/8/1980 to 8/1/1990 with

a beginning date for

officers of 10/17/1981 are

eligible at 24 months of

continued service, or at

least 181 days of ordered

active duty service.

GULF WAR

Veterans who served

from 8/2/1990 to the

present with 24 continuous

month of service or at least

90 days of ordered active

duty service

NATIONAL GUARD &

RESERVISTSNational Guard & Reserve

Members with six years of Service

in the Selected Reserve of

National Guard with 90 days of

Active Service. Completed al l

required training earning enough

points. Must have been honorably

discharged, or placed on the retired

list.


The spouse of a Veteran can also apply for home loan eligibility under one of the following

conditions: an un-remarried spouse of a Veteran who died while in service or from service connected

disability.

Page 5


Your lender can request for your COE instantly during your Pre-Approval process, or active duty

Military and Veterans can order their COE one of three ways-

1

2

3

Complete a VA Form 26-1880 and request online at www.eBenefits.va.gov

Complete a VA form 26-1880 along with proof of military service to the VA Loan Eligibility Center: PO Box 100023, Decatur, GA 30031

Aligned Mortgage can check if your Certificate of Eligibility is available.

HERE IS WHAT IT LOOKS LIKE:

Page 6

CHECK FOR YOUR VA CERTIFICATE OF ELIGIBILITY (COE):

http://www.ebenefits.va.gov

http://www.ebenefits.va.gov

THE VA FUNDING FEEThe VA Funding Fee is an insurance fund that the eligible borrower pays in their loan to

ensure the prosperity and longevity of the loan program. It is a fee based on type of military

services and first or subsequent use. It is charged both on purchase and refinance loans.

The amount of the funding fee depends on the following:

• The type of transaction (refinance versus purchase)

• Downpayment

• Whether this is the first use or subsequent use of the borrower’s VA Loan Benefit

• Whether you are/were regular Military, Reserve, or National Guard

• Veterans & Active Military buyers receiving compensation for a service connected disability

and deemed more than 10% disabled by the VA are exempt from paying the Funding Fee.

THE FUNDING FEE & HOW IT WORKS


$500,000

Loan Amount

2.3% Funding Fee Factor

(or appropriate funding fee)

$11,500 VA Funding Fee

+ $500,000 Loan Amount

$511,500 Final VA Loan Amount

␣␣

Page 7

X =

SO WHAT DOES A QUALIFYING

MORTGAGE PAYMENT CONSIST OF?

Here are some possible fees & payments

associated with both single family and

condos on a monthly basis.

CONDOMINIUM, TOWNHOUSE,

OR DETACHED CONDO

• Principal and Interest

• Property Taxes

• Maintenance Fee

• Additional Flood Insurance,

if required by the lender

• Association Fees

• Interior H06 Insurance,

if needed

SINGLE FAMILY HOME

• Principal and Interest

• Property Taxes

• Property Insurance

• Flood Insurance if necessary

• Association Fee if necessary


!Page 8

VA CLOSING COSTS

WHAT FEES ARE ALLOWED TO BE PAID BY THE BORROWER?

• 1% flat charge by the lender, plus reasonable discount points to lower the rate.

• Appraisal and compliance inspections - including pest inspections, water well, septic, etc.

• Recording fees

• Credit report fee

• Prepaid items - including pro-rations for property taxes, insurance, and initial escrow deposits as

required by lender.

• Insurance - the first year’s hazard insurance must be paid at closing, plus flood insurance if required

• VA flood certification - a third party verification to determine if a property is located within a special

flood hazard area

• Survey

• Title Examination and Insurance

• VA Funding fee - unless exempt each Veteran must pay a funding fee to VA

• Administrative fees

• Loan closing or settlement fees

• Document preparation fees

• Document preparation or

conveyance fees

• Attorney fees, other than those for

title work

• Rate lock-in fees

• Escrow fees or charges

• Notary fees

• Underwriting fees

• Loan application or processing

fees

• Broker’s fees

• Tax service fees.

WHAT FEES ARE NOT ALLOWED TO BE PAID BY THE BORROWER?


ZPage 9

COMMON MYTHS REGARDING

VA LOANS

OTHER TYPES OF FINANCING ARE EASIER TO QUALIFY FORThis is simply not the case. VA loans have a very high allowable debt-to-income level and an underwriter can manually approve a loan. VAhome loans also have very forgiving credit score and history requirements allowing for a score as low as 580 for some lenders, and the VAdeems credit repaired if the borrower has 12 most recent months of on-time payments.

THE VA LOAN AMOUNTS ARE TOO LOWThe VA loan has very high loan amounts with zero money down. Talk to your lender about the max zero-down amount in your area. They canrange from $417,000 to $726,525 depending on where you plan to buy. In fact, after the 100% financing threshold VA loan amounts can goas high as $1,500,000 with a down payment requirement.

VA LOANS TAKE TOO LONG TO CLOSEWorking with experienced VA Home Loan Purchase Lenders allows for the same turn around times as Conventional and FHA loans, and the VAloan has a much higher chance to actually close. Since VA allows for higher debt-to-income ratios and flexible underwriting the loan has lesschance for costly calculation mistakes, unlike more conservative products like Conventional financing.

I CAN ONLY USE MY VA LOAN ONCEYou can use your VA loan as long as you have remaining entitlement and/or paid off your existing VA Home Loan.You can buy a house, sell it,and then get your Certificate of Eligibility back to reuse at 100%. The second way to use your VA Loan again is if you pay off your house, orrefinance it with a different loan option, then you will receive a one time entitlement restoration option and get your Certificate of Eligibilityreinstated. Please contact a VA Home Loan Specialist at Aligned Mortgage to help you determine your option.

THE VA APPRAISAL IS TOO CONSERVATIVEThe appraiser on a VA home loan is not going to give a lower value on a property than other types of financing. An appraisers job is to give a fair and unbiased value on the home regardless of the type of financing. The appraiser also has to look for standard minimum propertyrequirements to ensure the property is safe and sound for you to buy. Un-permitted areas are allowed, as long as the veteran signs a "hold harmless" letter and the appraiser gives the area no value. Condominium homes do need to be approved on the VA Condo Approved list, but if not currently on the list it is possible to get the condominium approved by your VA Home Loan Specialist at Aligned Mortgage.

VA LOAN INTEREST RATES ARE THE SAME NO MATTER WHAT THE LOAN AMOUNT ISLoan rates offered to a customer are based on varying factors including: loan amount, debt to income ratio,cash the borrower iswilling to bring to closing out of pocket, and the borrower's credit score.

THERE ARE NO CLOSING COSTS ON A VA HOME LOANThere are closing costs on a VA home loan, just like any other type of residential loan, but there are fees that cannot be charged to theborrower that may differ from other products. It is also common in most states for a lender to offer higher interest rates to cover theborrower’s closing costs.

1

2

3

4

5

6

7

Page 10

DOCUMENTS REQUESTED FOR A VA HOME LOAN PRE-APPROVAL.

! Application and credit check

Two most recent Federal Tax Returns & W-2’s

Two most recent pay stubs or LES

Two most recent bank statements, all pages in statement

form

Quarterly statements for all stocks, bonds, mutual funds,

401k, or other long term assets

Copy of Orders if in the process of a PCS, or offer letter

is relocating to a new job

Name, address, and phone number of a nearest relative

not living with you

Other items may be required if self-employed or if the

VA Certificate of Eligibility is not readily available online.

!

!

!

!

!

!

!

!


ZTHE VA HOME LOAN BUYING PROCESS

1. Find out what you can comfortably afford by getting pre-approved by a VA Home Loan Specialist. You should provide any necessary income and assetdocuments to the lender to make sure the pre-approval is accurate.

2. Find a licensed real estate professional to help you search for homes inyour pre-approved range that are VA approved. Most legal, safe, marketablesingle family homes will be VA approved, but condos, townhouses,and detached condominium homes will need to be VA approved.

3. Work with your real estate professional to make an offer on a property4. Once the offer is accepted you enter into contract with the seller.5. Provide any additional income and asset documentation the lender requires.6. Lender issues a loan estimate three business days from the completion of the

loan application.7. Get a licensed home inspector to inspect the property to find any

unknown issues with the home.8. Appraisal will come back by a certified VA appraiser.9. Conditional Approval is issued by the lender and you will need to provide any

conditions asked for by the lender.

Congratulations!!


10. Final Approval is issued.11. Closing Disclosure issued.12. Loan Documents are issued and signed by the borrower.13. The Lender funds the loan by providing the funds for the loan to the seller.

Page 13

© 2019 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every

effort has been made to ensure accuracy, no guarantee is expressed or implied. Any programs shown do not demonstrate all options or

pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit

or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions

apply. Equal Housing Opportunity.