With rising mortgage rates, home buyers should close

8/30/2013 7:15:13 AM

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While finding a low-cost mortgage is always a high priority for first time home buyers - a case that still applies - rising mortgage rates and the forces that are causing them to rise should send a message to prospective homeowners that now is the time to buy. 

The last time the Federal Reserve announced plans to scale back its quantitative easing program, mortgage rates rushed from record lows, fluctuating wildly for the next two months before settling down. And the only reason mortgage rates settled was because the Fed released a statement that reassured lenders it would only reduce its monthly bond purchases if it felt the economy and housing market would be strong enough to weather a higher interest rate environment.

At that point, a large number of home buyers who were on the fence dove in, trying to secure a low interest rate while they still existed. The sentiment was that if you didn't get in then, rates would only climb higher. However, the memory of ultra-low interest rates (e.g. 3.34 percent) was still recent in the minds of many home buyers, and a number of them approached the market with cautionary hope that, after the Fed's reassurances, rates might come back down. And, at least temporarily, rates did return to more acceptable heights in addition to becoming relatively stable. There were even consecutive weeks where the changes to mortgage rates were statistically insignificant. 

The market forces
The Mortgage Bankers Association's seasonally adjusted mortgage application activity index, assessing both purchase loan and refinance applications, fell 2.5 percent during the week ending Aug. 23. Refinance applications, as the trend has been going, dropped 5.4 percent, with refinancing falling to 60 percent of total mortgage activity.

Breaking from the declining trend, the purchase loan application index rose 2.4 percent, offering promising data for future home sales despite a 12-basis-point increase in the interest rate for a 30-year mortgage, causing it to reach 4.8 percent - the highest since April of 2011, Reuters reported. 

Unlike the last time mortgage rates spiked in May over worries about the bond-purchasing policy, the heightened suspicion that the Fed will begin reducing its bond purchases next month is strong and has the economic data to support it. It could be the case that lenders are increasing rates to convince the Fed that the market isn't ready yet, and that any hike in mortgage rates will hamper the housing recovery.

And while that could indeed happen, the slight bump in purchase applications, the slowing of home price gains as property values approach pre-crisis levels and the planned government wind-down of Fannie and Freddie Mac are all pointing toward a scale-back of bond purchases. When taking this into account, it is less probable this time around that the Fed will continue its bond purchases. And in the event they do, in a few more months, the same debate will resurface. They have to stop at some point. 

If home buyers wait around for another decrease in mortgage rates, it's likely they won't find them. With the inventory of new homes expanding, the elasticity of home prices is more likely than mortgage rates going down again. This is the time to buy a home. 

Contact The Federal Savings Bank to discuss your home financing options in addition to eligibility for first time home buyer programs and incentives.

Despite home price gains, sales still strong

8/29/2013 7:19:23 PM

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Amid record-setting home price gains and an influx of investor-created rental properties, home sales still hit an eight-year high in the Southern California region.

The Los Angeles Times reported that median home values remained the same in July as they were in June at $385,000, a fact that came as a surprise to some. According to information from DataQuick, June set a new record for the largest percentage increase in median home prices, with a 4.6 percent rise over May and 28 percent increase year-over-year. 

And even though home prices were tempered in July, perhaps by rising mortgage costs or displaced demand, the region still sold more homes than it has in eight years - a sales trend that also may be influenced by rising mortgage rates. The fear over higher mortgage rates in the immediate future - something that may happen if the Fed tapers its bond purchases - could be persuading more home buyers to close. 

Stuart Gabriel, the director of UCLA's Ziman Center for Real Estate, said the market is slowly moving toward normal levels of activity. Gabriel's assertions are supported by the increasing inventory in the region. All six of the counties that compose the Southern California region have expanded their inventory. Orange County saw an 8.4 percent increase, whereas Los Angeles County's inventory rose 7.8 percent, according to data from Realtor.com. 

"As the mismatch between supply and demand eases, it will be more difficult for home prices to rise as steeply as we've seen over the past year," DataQuick President John Walsh said in a statement .

Rent or own?
However, the price gains of the recent past have pushed many would-be home buyers out of the market. The California Association of Realtors said that only 36 percent of home buyers in the state could afford a single-family home that is equal in value to the median home price. Just last year, 56 percent of California residents could afford a single-family home. This disparity has been partly caused by cash-strapped investors who are able to outbid families by thousands of dollars - and these homes are then converted into rentals. Almost 28 percent of all home purchases in July were made by investors.

The impact on the demographics in the region is surprising. Because of heavy multi-family construction and rental conversions, renters have a large number of options. In fact, rent in downtown Los Angeles has dropped 5 percent. Trying to rent a single-family home? Median rents for these properties have fallen 4.1 percent, The Los Angeles Times reported. And with the advent of 6,000 additional units slated to come online before the year's end, those figures could fall even more. 

For the home buyers who are not deterred by the rise of prices, shopping for a reliable lender to finance their home purchase is more important than ever. Securing a low cost mortgage and utilizing first-time home buyers programs to help subsidize the cost of a home is critical.

Contact The Federal Savings Bank to discuss your home financing options with mortgage professionals who care about the well-being of homeowners.

Housing assistance to aid veterans across the nation, from San Francisco to Atlantic City

8/27/2013 5:36:26 PM

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While much-needed housing assistance funds are dispersed from the U.S. Department of Housing and Urban Development and the Department of Veterans Affairs to organizations in the San Francisco area, veterans in Atlantic City will wait a little longer as a fundraiser stalls. 

The San Francisco Chronicle reported approximately $875,000 of the HUD and VA money will be distributed as housing vouchers controlled by the Housing Authority of San Francisco. Each voucher is used to supplement veteran housing so that no veteran is paying more than 30 percent of their income toward rent. 

"It's definitely harder in high-cost areas," Gene Gibson, spokesperson for the regional HUD office, told The San Francisco Chronicle. "But we have some programs that have worked well here. If we want to go out and fight these wars, you have to fund the services that follow. You can't have it both ways."

Gibson added that an estimated 70 vouchers will be made available to homeless veterans as a result of this funding. While a 7.2 percent drop in homelessness among veterans was reported between 2011 and 2012 - indicating significant progress - Swords to Plowshares, a nonprofit that runs a veterans housing complex called Veterans Commons, estimates there are still 3,000 homeless veterans in San Francisco on any given night. The low inventory of homes and the high rents push the cost of living out of reach for many veterans. 

"HUD and the Department of Veterans Affairs have forged an unprecedented and lasting partnership to make sure those who wore the uniform never face a life on the streets or in our shelters," HUD Secretary Shaun Donovan said in a statement. San Francisco's funding is part of a $60 million effort this year with the intention of ending veteran homelessness by 2015. 

Atlantic City's efforts
The Press of Atlantic City reported that Community Quest, a nonprofit in Egg Harbor, N.J., experienced a series of financial and logistical setbacks regarding its 24-unit low-income housing project intended to house veterans. Failed attempts at securing financing for the project has prevented the nonprofit from winning the support of Tuckerton officials.

"The borough's always supported veterans housing," Mayor George Evans told the source. "The last proposal was definitely not that. And it was not a benefit to the borough."

Community Quest partnered with RPM Development Group in order to right the struggling project. However, in order to financially support the needs of such a building, RPM recommended an expansion of the project from 24 units to 54 units, stating that more units were needed if the project would be viable. However, because the expansions violated zoning codes for the site and concerns developed over increased traffic clogging up the local roadways, the Land Use Board of Tuckerton Borough did not approve it.

With roughly 63,000 homeless veterans nationwide, affordable housing and assistance is important. Contact The Federal Savings Bank, a veteran-owned bank, to discuss low-rate mortgages and other first-time home buyer programs geared toward veterans.

Spouses of Fort Hood massacre victims to receive military benefits

8/26/2013 6:10:46 PM

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After the untimely death of numerous servicemen at a Texas military complex, the families of those servicemen will still be eligible for benefits.

The San Antonio Express-News reported the spouses of the victims that were killed during the 2009 Fort Hood attack by Maj. Nidal Hasan would be eligible for military benefits as if the deaths occurred in combat. Jerry Patterson, the land commissioner of the Veterans Land Board, made the announcement just before jurors officially found Hasan guilty of fatally shooting 13 servicemen at Fort Hood. Patterson reassured the spouses that, along with Veterans Land Board benefits, they would be eligible for below-market mortgage interest rates. In addition, they will have access to eight Texas Veterans Homes where they can receive medical care. Burial with full military honors at four Texas veterans cemeteries -including Corpus Christi, Killeen, Mission and Abilene - will also be extended to Fort Hood victims' families. 

"Each of the active and retired military members who died in the Fort Hood terrorist attack lost their life while assigned to duty in Texas or in support of the military in Texas," Patterson said. "Like Travis and Crockett, their spilled blood remains forever intermingled with Texas soil. Their surviving spouses who are residents of Texas at the time of application should be eligible for VLB programs."

The reassurances offered by the VLB to the spouses and families of the victims come at a time when veterans across the country are experiencing difficulty filing for disability benefit claims to the Department of Veterans Affairs.

The best benefits for our heroes
Veterans must typically be honorably discharged and have served more than 90 days of active duty in order to receive benefits from the VLB. It took jurors just hours to unanimously conclude a guilty verdict for Hasan for 32 counts of attempted premeditated murder and 13 counts of premeditated murder.

"This wasn't workplace violence - these were casualties of war and we're going to change the rules to give these families full access to VLB benefits," Patterson said. "We'll let the lawyers work out the details, but I intend to make sure we honor their sacrifice."

The Gilmer Mirror cited Texas' veterans benefits as the best in the nation. Originally formed in 1836 to ensure veterans of the Texas Revolution were extended land rights in exchange for their participation in liberating Texas, the Texas General Land Office later evolved into the modern Texas Veterans Land Board. The VLB was created in 1946 to honor the veterans of World War II. Today, the VLB serves 1.7 million veterans in the state of Texas

"No other state can match what the VLB offers: low-cost home, land and home improvement loans; skilled nursing long-term care facilities and cemeteries - all exclusively for Texas veterans or their spouses," Patterson said. "And all of our programs are self-funding, which is good news for Texas taxpayers."

Contact The Federal Savings Bank, a veteran owned bank, to discuss VA home loan eligibility and other low cost mortgage options to help make homeownership possible.

Cash purchases and their impact on the first-time home buyer

8/23/2013 11:13:25 AM

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While all-cash purchases by investors are often credited with shoring up the housing market, the rebound of home prices still leaves the first-time home buyer needing a low cost mortgage. 

Investor's Business Daily reported data from CoreLogic indicating 19 consecutive months of year-over-year declines in the share of overall U.S. home sales made by all-cash transactions. From 2000 to 2005, the average share of all-cash home purchases was just 25 percent. In May 2012, the share of cash sales was 40 percent of the overall U.S. market. In May 2013, cash sales slipped to 39 percent - a very high percentage despite the consistent decrease. 

Many economists predicted that as home prices skyrocketed, cash buyers would lose their taste for single-family homes. This sentiment rang true especially as distressed property inventories - already bought up by investors - dwindled. However all-cash home sales are sticking around a little longer than anticipated. 

Not every all-cash home sale is made by an investor. Retirees, second-home buyers and many others purchase homes with cash. Perhaps, however, the fear and realities of foreclosure instilled in homeowners and home buyers alike during the housing crisis have steered more experienced home buyers away from the mortgage process. 

Investors still active
The National Association of Realtors reported that 31 percent of all sales were made with cash in June, down 2 percent from May, but up 2 percent from a year ago. The historical normal level of cash sales activity is around 10 percent. As distressed property inventory dries up, investors may not be so active.

"Many [investors] want to get in before prices go higher, but that's not the only consideration," Irene Lockel, a real estate broker with Netter Real Estate, told Investor's Business Daily. "They also see an active market where a lot of transactions are taking place, so they are purchasing homes with cash, renovating them and flipping them."

With the median home price up by 13.5 percent year-over-year at $214,200,  investors might be moving elsewhere, but the first-time home buyer is presented with a higher-priced market and a need for financing.

"Early on in the housing slump we saw a lot of investor activity in Phoenix, Atlanta, Las Vegas, Florida — a lot of the markets that really got hit hard during the foreclosure wave," said Rick Sharga, executive vice president of Auction.com. "As those markets get saturated, investors are moving into secondary markets like the Carolinas, Tennessee and Illinois."

The first-time home buyer
This makes shopping around for mortgages even more important for first-time home buyers. With a number of lenders out there, it is important to find one that is reliable, friendly and has the interest of prospective homeowners in mind when creating competitive financing offers. With the number of cash-buyers remaining relatively steady through 2013, finding the right lender is critical to closing on a home.

Contact The Federal Savings Bank to discuss critical first-time home buyer programs that can save you and your family money.

VA partners with HUD to combat veteran homelessness

8/22/2013 6:34:11 PM

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The second round of housing vouchers from the U.S. Department of Veterans Affairs and the U.S. Department of Housing & Urban Development has been released in an effort to reduce homelessness among veterans. 

National Mortgage Professional Magazine reported the two agencies are committing a total of $60 million in housing assistance vouchers in 2013, with the most recent allotment of $7.8 million in HUD-Veterans Affairs Supportive Housing funding being released in August. That money will go to local agencies that provide clinical and housing services, helping 1,120 veterans stay off the streets.

"Our nation's veterans have sacrificed and given up so much for our freedom," said Shaun Donovan, secretary of HUD. "These vouchers are helping America end veterans' homelessness one veteran at a time until we see not one veteran living on the street. I look forward to continue working with Secretary Shinseki and the Department of Veterans Affairs to target assistance to our homeless veterans."

The challenge of ending homelessness
As a result of such funding, which began in 2008 with the Obama Administration's commitment to end chronic homelessness among veterans by 2015, the HUD-VASH vouchers have helped 43,371 veterans that were previously homeless locate permanent housing. HUD has determined that in 2012, homelessness among veterans had declined 17.2 percent since 2009. In 2012, there were 62,619 homeless veterans on a single night, and homelessness among veterans fell 7.2 percentk, with 4,876 finding housing by the end of the year. The goal is to reduce this number significantly.

"These HUD-VASH vouchers are a vital tool in our effort to provide these brave men and women with the earned care and benefits that help them live productive, meaningful lives," said Secretary of Veterans Affairs Eric Shinseki. "So long as a single veteran lives on our streets, we have work to do. But with the continued support of President Obama, Congress and our community partners, we will end homelessness among veterans."

With just 1,000 days left to achieve the goal of ending homelessness among veterans, Shinseki said the VA will need contributions from everyone to make it happen.

"To do it by 2015 is going to be a bumpy road," Donovan told The Washington Post. "We're going to have to be more creative than ever before."

Contact The Federal Savings Bank, a veteran owned bank, to discuss VA home loan eligibility, obtaining a low cost mortgage and other home financing options.

The VA backlog problems persist

8/22/2013 6:32:16 PM

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While the U.S. Department of Veterans Affairs works to chip away at its backlog of disability claims, it has asked some disabled veterans to utilize claim preparers in an effort to reduce the backlog and waiting times. 

According to Newsday, while the practice might alleviate the backlog of claims, veterans advocates claim the VA's request is evidence of the increased complexity of filling out a disability claim, and the paperwork-heavy process might leave veterans dependent on a third-party preparer. However, by using an independent accredited claims preparer - a service that is often free of charge from local veteran service organizations - the VA said filing errors that cause 700,000 backlog claims and delays of up to a year would be mitigated.

"Most veterans by nature are independent, can-do people, so the idea of having to seek assistance filling out paperwork adds another layer of frustration," Tireak Tulloch, a Long Island spokesman for national advocacy organization Iraq and Afghanistan Veterans of America, told Newsday. "It's like the IRS telling you you have to go to H&R Block if you want to get your money back."

According to Allison Hickey, the VA undersecretary for benefits, the VA strongly encourages veterans to work with appropriate service organizations like the American Legion to file fully developed claims. 

The persistent backlog problem
With the 20 hours of mandatory overtime approved for each VA claims processor each month drying up in September, some are worried the VA won't be able to meet its goal of completely processing the backlog by 2015. It appears the latest request from the VA encouraging veterans with combat-related disabilities to utilize accredited preparers to file claims is part of an "anything goes" strategy in reducing its backlog.

USA Today reported that nearly 500,000 claims are more than four months old. Despite hiring thousands of people to help process these claims, an average VA employee processed 73 claims in 2012. In 1997, an average VA employee processed 137 claims. The disparity and apparent lack in performance is attributed by the VA to the increasing complexity of the claims being submitted. 

Using a preparer
As reported by Newsday, stories of claims preparers destroying claims or never filing them has caused a number of problems. For instance, Joe Mylonas, a former Army staff sergeant, took the VA's recommendation and acquired the assistance of the Sweetwater County Veterans Services office to fill out his claim. However, the office never filed his claim.

It took nearly two years for Mylonas to finally get benefits for his service-related disability claims, but the VA did not make them retroactive to when he first filed the claim. The VA's reasoning was that, because preparers are not technically employed by the VA, they are not responsible for their actions - a convenient loophole for mishandled claims. All in all, Mylonas lost an estimated $16,000 due to the delay.

Contact The Federal Savings Bank, a veteran-owned bank, to discuss financing options for purchasing a home and see if you qualify for the VA home loan guaranty.

Veteran-minded groups look to walking, running to raise awareness

8/19/2013 7:19:07 PM

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While two Wisconsin veterans walk across the country to raise awareness about post traumatic stress disorder, one University of Michigan graduate creates a nonprofit organization. 

Wisconsin
The Associated Press reported that Tom Voss and Anthony Anderson, southeast Wisconsin natives and Iraq War veterans, have planned to walk from Milwaukee to Los Angeles, a 2,700-mile trip that will take the two men five months to complete.

"I never had the opportunity to take that time and say, 'What did I just do with my life? What have I been doing with my 20s?'" Anderson told the source. "I got married a month before I first deployed in 2004. When I first got back, I was trying to be a husband. I never had time to stop for a bit and just think about what had just happened to me and what I'd just been a part of. That's kind of how I envision this trip."

While the personal gains from such a trip are anticipated by the two men, Voss and Anderson have public ambitions since both been diagnosed with PTSD - in 2008 and 2006, respectively. Because many veterans with PTSD turn to substance abuse to cope with war time experiences and transition difficulty the men are not only using the trip to raise awareness about PTSD, but also to raise $100,000 for Dryhootch, a nonprofit dedicated to helping veterans.

Michigan
The Army Times reported that Maj. Mike Erwin, a veteran and University of Michigan graduate, created Team Red, White & Blue, an organization designed to give veterans a community and help smooth their transition to civilian life. 

"We're providing that network that helps veterans to combat the tendency to isolate themselves as they go through a difficult transition from soldier to civilian," Erwin told the source.

With chapters in 55 cities, and more than 15,000 members, the four-year-old organization has a fitness bend. In order to raise money to support this large network of veterans, Erwin created the 100-in-100 program. He is planning to run 100 miles in 100 hours to raise money and awareness for veterans. On July 30, he ran 25 miles in Chicago. He followed it up with 25-mile runs in Los Angeles, Washington D.C. and Phoenix. His team drove from Phoenix to Los Angeles, where Erwin ran back-to-back. 

Erwin added that organizations like his are imperative for the 1.2 million veterans returning to the U.S. over the next four years. While the goal of his run was partly to raise money, he said it was also a great way to reach out to chapters across the country. The money that he raises will contribute to lowering the entry costs for veterans to join the organization. They also fly veteran athletes from across the country to athlete camps where they compete in events. 

Contact The Federal Savings Bank, a veteran-owned bank, to discuss your eligibility for a VA home loan and other first-time home buyer programs.

Military health discussion follows push for benefits information

8/16/2013 7:01:06 PM

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Members of the military discussed veterans' health while one nonprofit organization moves to expand access to information regarding benefits. 

The U.S. Department of Defense met with the Department of Veterans Affairs at the Military Health System Research Symposium in Fort Lauderdale, Fla., to discuss the role of traumatic brain injuries, post-traumatic stress disorder, their impact on veterans' mental health and the National Research Action Plan. Between 2000 and 2012, more than 250,000 veterans have sustained traumatic brain injuries, 80 percent of which resulted from non-combat scenarios.

The action plan arose from an executive order by President Barack Obama to improve veterans' access to mental health services as well as determine the effects of mild traumatic brain injury. The DOD and the VA, in conjunction with the U.S Department of Education and the U.S. Department of Health and Human Services, will cooperate with one another to acquire such knowledge, as well as identify gaps in treatment and ways to address them. 

"The National Research Action Plan demonstrates a dedication across multiple agencies to close critical research and care gaps, both in the military and civilian sector," said Dr. Terry Rauch, health affairs director of medical research at the Department of Defense. Specifically, the Consortium to Alleviate PTSD and the Chronic Effects of Neurotrauma Consortium will address these health issues and work to improve the diagnostic and treatment capabilities for each, as well as to better understand the relationship between such conditions and neurodegeneration.

Deputy Director of the Defense and Veterans Brain Injury Center Katherine Helmick noted that treatment, evaluation and management of patients with mild TBI needs to be a continued focus. Most service members with TBIs resulting from minor injuries make full recoveries, she said.

More knowledge, more power
While military officials move to improve their understanding and treatment of injuries often sustained by veterans, MilitaryRecords.us.org is working to expand access to information regarding veteran benefits. The organization hopes its efforts can help veterans utilize programs and designed to help and compensate them for health issues.

"The veteran's benefits system is incredibly complex," a MilitaryRecords.us.org spokesperson told The San Francisco Chronicle. "But we've taken the time to explain how it works and where they need to go to take full advantage of their benefits. It is all in plain English and incredibly accessible."

Due to concerned veterans visiting its website, MilitaryRecords.us.org decided to compile relevant information with former military members and legal experts to ensure veterans get the help they deserve.

Contact The Federal Savings Bank, a veteran owned bank, to discuss VA home loan eligibility and other military-related home financing options.

Natural disasters impact mortgage defaults

8/15/2013 5:17:32 PM

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As climate change creates stronger, more unpredictable weather patterns, homeowners and lenders alike face an increasing probability of mortgage defaults resulting from natural disasters. 

HousingWire reported the degree to which mortgage portfolios are threatened by natural hazards such as tornadoes, hurricanes, earthquakes and flooding is not exactly known. However, mortgage professionals are trying to assess this risk in a number of different ways. Certain requirements are already in place to mitigate risk. For instance, homeowners are required to purchase flood insurance if the home exists within a flood plain. This is often times coupled with a homeowner's hazard insurance.

"Buying a house is one of the biggest financial decisions a consumer will ever make, but it's often hard for home shoppers to get information about the potential risks and impact of natural hazards like those we've had in recent years," said Lee Clancy, vice president of consumer products at Trulia. In fact, Trulia has put together visualizations or risk to illustrate how threatened any given home is by hurricanes, floods and fires. 

According to a Trulia report, the federal government set a new record in the number of natural disasters it declared in 2010, with a total of 81. In 2011, that record was broken. In fact, just 12 of the disasters in 2011 causing $52 billion in overall damage. The simple fact that natural disasters are becoming a more common aspect in contemporary life is something the real estate and lending industries have a stake in. 

Assessing natural disaster risk
​CoreLogic released its August MarketPulse report, within which it directly addresses natural disasters and the likelihood of mortgage default in such an event. 

"One risk that we have historically presumed is covered by requiring insurance is the risk of mortgage default due to natural disaster," the CoreLogic report said. "Our research demonstrates that borrowers, after controlling for their propensity to default based on traditional mortgage credit characteristics, default at a higher rate the higher the propensity of natural disaster is at the property level."

As a way to accommodate this increased risk, lenders are looking to integrate CoreLogic's natural hazard single risk score, representing the overall risk in a specific geographic region, and adjusting the loan-to-value score. Subsequently, CoreLogic concluded default as a result of natural disaster with a high natural disaster risk loan is twice as likely as a low risk loan. The higher the natural disaster risk score, the greater the LTV must be adjusted to account for that risk.

Contact The Federal Savings Bank to discuss low rate mortgage options and first-time home buyer programs.

VA home loans: Appraisals and rate reductions

8/14/2013 4:38:19 PM

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Homeowners who are eligible for Department of Veterans Affairs' home loans, aside from benefiting from the VA loan guaranty, also stand to benefit from the appraisal process and easy refinancing.

As outlined by Mortgage Reports, since its inception in 1944, the VA home loan system has guaranteed more than 20 million loans as a means to make housing affordable for servicepersons. Eligible military borrowers are not required to make a down payment or procure mortgage insurance. The program also has less strict qualification standards, making a mortgage approval easier than conventional mortgage products. 

VA appraisals
To ensure quality and fairness, a VA appraisal is assigned through the VA central appraisal system that randomly selects an appraiser. Despite the lender commissioning the appraisal through the VA, the randomized process puts distance between the lender and the appraiser, giving each appraisal a greater degree of independence and autonomy. Appraisers who are swamped with a high number of clients are less likely to be assigned. While this may not seem like much, it means a homebuyer will get an appraisal more quickly. The earlier the appraisal is completed, the faster a homebuyer can close on their home.

Not only will a homeowner get access to a network of VA approved appraisers, but the work VA appraisers conduct is more comprehensive than traditional appraisers. For instance, VA appraisers are required to inspect a home's safety status and ranking, as well as assess the safety of its working parts. This includes a detailed integrity analysis of a home's plumbing, foundation, gutters and downspouts as well as any other mechanical systems.

While this process can help identify potential problems, it is recommended homebuyers still have the home officially inspected. The VA appraisal process is not designed to replace the inspection, rather just a more comprehensive appraisal. The fee for this process must be paid by the homebuyer, however, in the event of a VA loan refinance, an appraisal is not needed. 

VA home loan refinance
Once you have been approved for a VA home loan (requiring a Certificate of Eligibility, credit check, appraisal, etc.), you do not need another COE, appraisal or credit check. In fact, it's incredibly easy and with no out-of-pocket expenses to the homeowner (with the costs rolled into the refinance loan amount). 

The Interest Rate Reduction Loan, otherwise known as the VA Streamline Refinance loan, allows homeowners to lower their interest rates so long as they are current on their mortgage with just one 30-day late payment within the past year. In addition to being current, your new payment must be lower than your existing one, you must occupy the property, and the property in question must be purchased originally with a VA home loan. A homeowner cannot receive any cash from an IRRRL. However, if a cash-out refinance is what is desired, consider the VA Cash-Out refinance loans.

Contact The Federal Savings Bank, a veteran owned bank, to discuss your eligibility for a VA home loan and any refinance options.

Wall Street firm, veterans form key partnership

8/12/2013 4:39:55 PM

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Amid a sea of applicants, some Wall Street firms go out of there way to hire veterans because of their work ethic and their ability to perform in high-stress environments. 

FOX Business reported many veterans seeking a Wall Street career often apply to the NYSE Euronext Veterans Associate Program, a 10-week internship program designed specifically for veterans. 

"Mental toughness is what's going to get you through," said Mark Otto, managing director at J. Streicher & Co. "I think that's an advantage (the program participants) have over civilians that are in tough situations (on the floor). They've stuck it out. They've been through war. They know what toughness is."

Otto, a Marine, was on leave during his third year when he met his friend's boss. The boss happened to have a 25 year career at the NYSE and was also a veteran. As a result, Otto landed an entry-level position at Spear, Leads & Kellogg. And while lives are not on the line as they are behind enemy lines, Otto says that it's still a high-stakes environment. 

"When you enter an occupation, you need to develop confidence, understand fundamentals of the business, then take on more responsibilities," said Grant Borgelt, an associate at the NYSE Veterans Associate Program. "I have that appreciation - but when you talk to hiring managers, if there's not some accommodation (for veterans), or appreciation that someone who spends for or six years (in the military) they'll need a different channel to enter into the corporate world than the average person who finished college. In a sense, it's frustrating because trying to get your first break is very difficult."

One firm makes a commitment
Going above and beyond just an internship program, the Drexel Hamilton firm personally hires and trains veterans over high-performing college graduates. Of the firm's 69 employees, 31 are veterans, and an additional 14 employees are disabled veterans. 

"These people work hard," James Cahill, president of Drexel Hamilton, told Newsday. "They are the Joes of the world who deserve to buy a home for their families and have a decent shot at the American dream."

Cahill, who lost his son during the 9/11 terrorist attack, believes in giving back to veterans because their work protects the people in New York City from more attacks. In 2008, Lawrence Doll invested his own money to start the firm, and believes that giving veterans rewarding, lucrative employment gives them back their dignity. Doll is a disabled veteran himself, and brought Cahill in to run the daily operations at the firm in 2010.

According to Traders Magazine, it doesn't matter if the veterans that Cahill hires move on to other firms. The real benefit, he added, is getting veterans to work. To ensure these men and women get the training they need to succeed in the stock exchange environment, the firm pairs veterans up with former Wall Street professionals. 

"We want to hire as many veterans, either Wall Street or military, to grow the business," Cahill added. "And we're talking to more every day."

Contact The Federal Savings Bank, a veteran owned bank, to discuss low cost mortgage options and VA home loan eligibility if you are a veteran looking to purchase a home.