Military Relocation

Military Relocation – PCS San Diego

Last modified on 2012-04-10 05:06:12 GMT. 0 comments. Top.

The Trident Realty Group is proud to be the top destination for active duty military and veterans looking to take advantage of the outstanding buyer’s market in San Diego.  TRG is owned and operated by two former Marine Corps Captains and disabled veterans, Dan Chapman and Mike Chiesl who do their best to treat military like family.  TRG has a full team of professionals, several of whom are also veterans, all with a focus on putting the client FIRST.

Throughout San Diego county, home buyers can actually purchase a home and have a mortgage that is lower than rent.  How is this possible?  Well, with very low prices, low interest rates, and increasing rent, buying has never made more sense.  Trident is also partnered with a VA loan specialists that has a variety of loan products to fit almost any buyer and performs loans in ALL 50 states.

Please call or email Trident today for a free consultation.  858.777.9817     info@TridentRE.com

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Military Housing Articles

2012 San Diego BAH Rates – Camp Pendleton

Last modified on 2012-02-18 00:20:46 GMT. 0 comments. Top.

Make your financial plans carefully when factoring in BAH as a contributing source of income for your house payment. Remember, BAH is calculated on local rents. Mortgage amounts are not used to compute Basic Allowance for Housing. You may be able to offset some or all of your monthly mortgage payments using BAH, but it’s not designed to do so.

All CA BAH Rates:  http://www.valoans.com/bah-rates-state.cfm?state=CALIFORNIA

San Diego BAH Chart

VA Streamline Refi – IRRRL Facts for Veterans

Last modified on 2012-03-29 01:24:41 GMT. 0 comments. Top.

IRRRL stands for Interest Rate Reduction Refinancing Loan.  You may see it referred to as a “Streamline” or a “VA to VA.”  Except when refinancing an existing VA guaranteed adjustable rate mortgage (ARM) to a fixed rate, it must result in a lower interest rate.  When refinancing from an existing VA ARM loan to a fixed rate, the interest rate may increase.

No appraisal or credit underwriting package is required by VA.  You should be aware, however, that lenders may require an appraisal and credit report anyway.

A certificate of eligibility is not required.  Your lender may use our e-mail confirmation procedure for interest rate reduction refinance in lieu of a certificate of eligibility.

An IRRRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.  (Remember: The interest rate on the new loan must be lower than the rate on the old loan unless you refinance an ARM to a fixed rate mortgage).

Any lender of your choice may process your application for an IRRRL.

Some lenders may contact you suggesting that they are the only lender with authority to make IRRRLs.  Remember – Any lender may make you an IRRRL.

Some lenders may say that VA requires certain closing costs to be charged and included in the loan.  Remember – The only cost required by VA is a funding fee of one-half of one percent of the loan amount which may be paid in cash or included in the loan.

You must NOT receive any cash from the loan proceeds.

An IRRRL can be done only if you have already used your eligibility for a VA loan on the property you intend to refinance.  It must be a VA to VA refinance, and it will reuse the entitlement you originally used.  You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller, if you assumed the loan.  If you have your Certificate of Eligibility, take it to the lender to show the prior use of your entitlement.

The occupancy requirement for an IRRRL is different from other VA loans.  When you originally got your VA loan, you certified that you occupied or intended to occupy the home.  For an IRRRL you need only certify that you previously occupied it.

The loan may not exceed the sum of the outstanding balance on the existing VA loan, plus allowable fees and closing costs, including funding fee and up to 2 discount points.  You may also add up to $6,000 of energy efficiency improvements into the loan.

NOTE:  Adding all of these items into your loan may result in a situation in which you owe more than the fair market value of the house, and will reduce the benefit of refinancing since your payment will not be lowered as much as it could be.  Also, you could have difficulty selling the house for enough to pay off your loan balance.

Some lenders offer IRRRLs as an opportunity to reduce the term of your loan from 30 years to 15 years.  While this can save you a lot of money in interest over the life of the loan, if the reduction in the interest rate is not at least one percent (two percent is better) and lots of new loan costs are rolled into the new loan, you may see a very large increase in your monthly payment.

Beware:  It could be a bigger increase than you can afford

No loan other than the existing VA loan may be paid from the proceeds of an IRRRL.  If you have a second mortgage, the holder must agree to subordinate that lien so that your new VA loan will be a first mortgage.

The Trident Realty Group is owned and operated by two former Marine Corps combat veterans and is partnered with Prime Lending.  Together they have performed hundreds of VA loans for active duty military and veterans.  We can be contacted M-F 9-5 at 858.777.9817 or via email at TridentRE@gmail.com

VA

VA Reduces Funding Fee from 2.15% to 1.40% Effective Nov. 18th

Last modified on 2012-03-01 18:24:25 GMT. 1 comment. Top.

Effective Nov 18th, VA funding fees will be reduced for active duty, retired and National guard personnel.

Depending on status (active duty/retired vs. reservist) and whether it’s a first time user (vs. second and all subsequent users) the funding is reduced from 2.15%  to 1.40%.

What this means to your typical first time buyer (i.e. first time user of their VA loan)applying for a $250k loan..is their closing fee is reduced from $5375 to $3500.

Disabled veterans (even ZERO percent), pay NO funding fee.

Contact the Trident Realty Group at TridentRE@gmail.com.   TRG is owned and operated by two former Marine Corps Captain and Naval Academy Graduates.   You can also contact us Mon-Fri at 858.777.9817

VA

 

New Homes in Oceanside – Camp Pendleton

Last modified on 2012-03-01 18:50:33 GMT. 0 comments. Top.

If you’ve driven by the back gate of Camp Pendleton, you may have noticed all of the signs pointing toward the new homes.  You might have even seen someone spinning a sign to entice you to purchase a new home.

How does one go about purchasing a new home?  What is the process like compared to buying a used home?  Can I have someone look out for my interest? or is it like buying a car from a dealership, do I have to pay “sticker price?”  How much does it cost to have a real estate agent negotiate on my behalf?  Why do they make me sign-in when I first walk in the door?   Why do I have to use their lender?  Why can’t I use my own bank?

We have helped several clients buy one of these new homes at the best terms possible for THEM, not the developer.  Best of all, having us represent them did not cost them a single dime.  The developer pays for our services, not the buyer.

There are many factors included in the price of a new home:  purchase price, upgrades, closing costs, bank fees etc…  Our goal is to ensure you the buyer get the absolute best deal possible and to make you a client for life, not just sell you a home at the highest price possible.  Developers do not like working with agents, because they know it’s going to cost them money – thus make you money.  This is why they try to get you to come in on your own and sign on the dotted line.  They want you to pay sticker price and use their bank/terms.

We will accompany you on your home tour and negotiate all terms for you and provide unbiased advice regarding the entire home buying process.

The Trident Realty Group is owned and operated by two former USMC officers and Naval Academy graduates, Dan Chapman and Mike Chiesl.  Please feel free to call/email for a free home buyers consultation.  Prices start at 399,000.

858.756.9287         TridentRE@gmail.com

HAP Guidelines Eligibility & Frequently Asked Questions – Am I eligible for HAP?

Last modified on 2012-03-11 02:08:58 GMT. 4 comments. Top.

HAP is a nationwide program adopted to help military homeowners when they have received Permanent Change of Station (PCS) orders to another base or duty station and are having difficulty selling their home due to lack of equity.

Understanding the basics about the Homeowners Assistance Program can be very difficult to piece together from their dedicated web-page http://hap.usace.army.mil/homepage.asp.

At the Trident Group we are former military dedicated to helping out veterans and active duty military with selling their homes and knowing the ins/outs of all possibilities afforded to them.

Here is what you need to know:

1. Eligibility. Who is eligible for HAP?

All active duty military members including Coast Guard and civilian DOD employees that have been forward deployed* who have purchased homes or were under contract to purchase a home prior to July 1 2006.  Surviving spouses* are also eligible for HAP.

Have PCS orders from February 1 2006 to September 30 2010. Orders must have a report date no later than 28 February 2010. With available funds, the PCS end date may be extended through 30 Sept 2012.

In San Diego, purchase price does not exceed $697,500.

2. Payoff.  How much will HAP contribute towards my home sale?  Will I be responsible for bringing in funds to close the deal?

Once a military member has been approved for HAP, located a realtor that understands how HAP works and had a ready, willing and able buyer, HAP will pay 90% of the original purchase price that the military member paid for the home.  The stipulation is that the sales price is within 10% of fair market value.  If the military member purchased the house with a 0% down loan, then 10% of that loan will need to reimbursed by the military member.  On a $500,000 purchase, this can mean that the military member needs to bring in $50,000 to make the sale occur.  One way to offset the amount needed to bring to closing is if the military member can show receipts for upgrades or improvements which will be added to the 90% HAP will pay.

It is EXTREMELY important that a military member hire a realtor that has extensive HAP experience as many of these details are often missed by agents and can cause problems for service members.

For more information please contact Mike or Dan at the Trident Realty Group at TridentRE@gmail.com.

Homeowners Assistance Program

Definitions:

Forward Deployment: Performing service in an area where the Secretary of Defense or the Secretary’s designee has determined that Service members are subject to hostile fire or imminent danger under Section 310(a)(2) of title 37, United States Code.

Surviving Spouses: The spouse of a member of the Armed Forces or a civilian employee of the Department of Defense or the United States Coast Guard if:The member or employee dies as a result of a wound, injury, or illness while deployed (or forward deployed for civilian employees) on or after September 11, 2001, and the spouse relocates from the member’s or civilian employee’s primary residence within two years of the death of such spouse.

HAP Sales in San Diego are Closing in 2 Months!

Last modified on 2011-10-13 03:51:37 GMT. 0 comments. Top.

We just closed our second military Homeowners Assistance Program (HAP) sale this week and are happy to announce that the speed at which these files are closing has greatly increased.  On our second closing, from the time we got an offer till closing took only 60 days!

We’ve performed over a dozen HAP sales the past year, but never has one closed this quickly and smoothly.  We’ve never even had a short sale close with such ease.

For anyone considering the HAP program, don’t let the fear of lengthy delays scare you off.  Currently, the HAP office states they are working on files from the summer of 2009 and earlier.  That means if your orders are from before then, you instantly move to the VERY TOP of the pile and can close your sale in only 2 months.

Another aspect some service members may not realize is that if they put a significant amount of money down and/or paid down their mortgage, they actually get money back from the government!  On one of our recent sales, the client had put 20% down when they bought and had been aggressively paying down their mortgage.  In this case, the client owed about 500k and sold for 460k after they had paid 680k in 2005.  At closing, they received a check for over $100,000, which they used for a down payment on a new home.

While the Trident Group specializes in Southern California, we have a network of experienced HAP agents all around the country and will be more than happy to connect you with a professional in your area.

If a member does not qualify for HAP and wishes to perform a short sale, the Trident Group also can accommodate those clients.

Dan Chapman and Mike Chiesl are both former Marine Corps Captains and Naval Academy graduates who are now realtors and have helped military members perform 12 HAP transactions since 2009.

For more information, email:  danchapman@me.com or call/text 858.756.9287

or visit the HAP site:  http://hap.usace.army.mil/EP_PCS.html

Homeowners Assistance Program

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VA Loan Limits for 2011 Announced – San Diego County Limit Increased!

Last modified on 2011-04-20 21:02:47 GMT. 0 comments. Top.

The Department of Veterans Affairs announced new loan limits for the VA Zero Down Payment Loan.  These limits apply to all VA loans closed January 1, 2011, through September 30, 2011  The new limit for San Diego county was raised $100,000 to $537,000..

The VA Loan Guaranty program does not set a maximum amount that an eligible veteran may borrow using a VA-guaranteed loan.  However, they do limit the amount that they will guaranty to 25% of the local VA limit.

If an eligible veteran wishes to purchase a home priced higher than the local maximum limit, then that veteran would need to bring in a down payment to make up the difference between 25% of the local maximum (the guaranty) and 25% of the purchase price.

Here is an example: The 2011 VA limit for real estate purchases in San Diego County is going to be $537,500. If an eligible veteran with full entitlement purchases a home of equal or lesser value than $537,500 then no down payment will be required.  VA will guaranty up to 25% of the local limit ($537,500) which equals $134,375.

However, if that same veteran wishes to purchase a home priced at $550,000 then they would need to bring in the difference between 25% of the local limit and 25% of the purchase price.

• Maximum Guaranty Amount In San Diego County = 25% of $537,500 = $134,375
• 25% of Purchase Price $550,000 = $137,500
• Difference between $137,500 and $134,375 = $3,125

The required down payment in this example of $3,125 is less than 1%…not too shabby.  The greater the difference between the purchase price and the VA local limit, the greater the percentage down payment.

• Purchase price of $600,000 in San Diego County will require down payment of $15,625 which is only a 2.6% down payment
• Purchase price of $650,000 in San Diego County will require down payment of $28,125 which is only a 4.3% down payment
• Purchase price of $700,000 in San Diego County will require down payment of $40,625 which is only a 5.8% down payment

This is great news for active duty military and veterans alike looking to purchase San Diego real estate.  The 2010 limit was only $437,500…that is a $100,000 increase!

The Trident Group is owned by Dan Chapman and Mike Chiesl, both are former Marine Corps Captains and Naval Academy graduates who now help veterans buy/sell housing through the greater San Diego area.  Any VA-certified lender of your choice may make the loan. Due to VA loans’ high-yield/low-risk nature, Veterans have a huge advantage in today’s buyer-favorable market. For additional info, please forward questions to TridentRE@gmail.com  or to pre-qualify for your VA benefit, go to:  http://www.tridentre.com/finance/prequalified/

The VA Funding Fee: A Small Price to Pay for Homeownership

Last modified on 2012-03-01 18:31:02 GMT. 0 comments. Top.

The VA Funding Fee: A Small Price to Pay for Homeownership
Uncle Sam offers VA Home Loans for current and former military personnel. Its main purpose is to facilitate Veterans’ home ownership.

The actual loans are made by private lenders. These lenders become VA-certified by meeting certain minimum criteria. The US Government, however, “guarantees” the loan by agreeing to pay off a certain percentage of the outstanding debt in event of buyer default. In effect, the Federal Government becomes co-signer!

VA

These loans are extremely attractive to lenders: they are very low risk, yet highly profitable.

By virtually eliminating lender risk, Uncle Sam enables military personnel to obtain mortgages on much more
favorable terms than would be available otherwise. This includes possible ZERO down payments.

Lenders must be compensated for basic overhead expenses, however. There are initial costs associated with extending home loans. To defray such costs, the VA funding fee is applied to all VA-backed mortgages, as a one-time advance charge.

The funding fee may be financed into the loan, paid in cash at closing, or any combination thereof. This fee is mandatory for all VA loans, unless the veteran : 1) has a military-related for injury with VA compensation; or, 2) is the widow/widower of a veteran who died in active duty, or from a service-connected disability.

If you have previously used your VA eligibility, the Funding Fee will be higher than for a first-time VA loan.

Active-duty, first-time borrowers:

For refinances and initial purchases involving down payments less than 5% of the purchase price, the fee is 2.15%.

For subsequent uses, the fee increases to 3.3%. (Unless the veteran’s only prior use was for manufactured home loan). The number of times which VA eligibility may be used is unlimited.

Local VA loan limits are:

San Diego County $537,500
Orange County $593,750
Riverside County $417,000

Separated personnel maintain their eligibility for life, if they have a DD-214 with Honorable Discharge.

Buyer Non-Allowables (costs not covered by VA eligibility) include costs such as:

Underwriting Fee
Processing Fee
Mortgage Broker Fee
Administration Fee
Tax Service Fee
Wire Fee
Escrow Fee

Sellers or real estate agents often absorb such costs to facilitate sales. Lenders may also opt to charge slightly higher interest rates. The increased long-term yield compensates for the initial cost.

Any VA-certified lender of your choice may make the loan. Due to VA loans’ high-yield/low-risk nature, Veterans have a huge advantage in today’s buyer-favorable market. For additional info, please forward questions to TridentRE@gmail.com

The Trident Realty Group is a disabled veteran owned company by Dan Chapman and Mike Chiesl, both former Marine Corps Captains and Naval Academy Graduates.

The Benefits of owning a home for Active Duty Military

Last modified on 2012-03-11 02:06:42 GMT. 0 comments. Top.

Service members get a tax-free housing allowance, can qualify for tax-free pay while serving in a combat zone and have an extended tax-filing deadline while deployed — giving them up to 180 days after returning from a combat zone to file their tax return.

They can also stockpile extra money for retirement in tax-deferred accounts. Not only can military personnel stash up to $16,500 in the federal Thrift Savings Plan in 2010, but they can also contribute all of their tax-exempt combat-zone pay (as long as total TSP contributions for the year don’t exceed $49,000). Tax-exempt pay that goes into the TSP comes out tax-free in retirement. At the same time, they can contribute up to $5,000 to an IRA ($6,000 if 50 or older), even if their entire yearly income is tax-exempt combat pay.

Homeowner Tax Breaks – Now service members serving outside the U.S. for at least 90 days between December 31, 2008, and May 1, 2010, have an extra year to qualify for the $8,000 first-time home-buyer credit or the $6,500 credit for current homeowners. They have until April 30, 2011, to sign a contract and until June 30, 2011, to close on the new house. Normally, if homeowners don’t live in the new house for at least three years, they have to repay the tax credit. But there’s an exception for members of the military who have to relocate because of government orders.

Military families also get a special break when they sell their homes. Most homeowners need to live in a house for at least two of the five years leading up to the sale in order to claim tax-free profits of up to $250,000 ($500,000 if married filing jointly). But because they move frequently, military families need to live in the house for only two of the preceding ten years in order to qualify if they are on qualified official extended duty, which means living at least 50 miles from home or in government quarters.

Trident Realty works with both buyers and sellers, and sells foreclosures and short sales as well. We also offer property management services.  Trident Realty is a disabled veteran owned business operated by former Marine Corps Captains and Naval Academy graduates, Dan Chapman and Mike Chiesl.  Contact:  858.777.9817  dan.chapman@tridentre.com

First Time Homebuyer Tax Credit Extension For Military

Last modified on 2012-03-11 02:13:49 GMT. 0 comments. Top.

The federal government has extended the first time homebuyer tax credit for military members another year through June 30th 2011. The tax credit extension is only valid for those military personnel that have served at least 90 days outside the US from Dec 31st 2008 through May 1st 2010. To qualify for the tax credit, buyers must be under contract for a purchase by April 30th 2011 and close by June 30th 2011.

Veterans Administration Accepting FHA Condo Approvals For a Limited Time

Last modified on 2010-10-13 07:32:15 GMT. 0 comments. Top.

$8,000 Homebuyer Credit for Active Duty Military

The VA will, once again, accept  the FHA condo approval for VA condo financing (suspension instituted last September).

Monday, May 17, 2010, they amended that suspension.  VA will now accept:

• FHA condo approvals dates prior to December 7, 2009 are accepted by VA
• FHA condo approvals dated after December 7, 2009, or phases of a complex annexed after that date are not acceptable

This all sounds positive except for the fact the FHA complex approvals will have to be renewed every two years.  Essentially, the window for using the the HUD approval will expire as the HUD approvals expire.

My recommendation is for every condominium, with an FHA approval dated prior to December 7, 2009, to submit their paperwork to the VA as soon as possible.

Originally posted at California’s VA Mortgage Broker

VA Escape Clause (Amendatory Clause to The Residential Purchase Agreement)

Last modified on 2012-03-01 18:33:36 GMT. 0 comments. Top.

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