Any Advice When Applying For Va Home Loan?

[mrsvet28]

MrsVet here,

Mrvet and I are interested in a place we found at a good price and we need some peace and quiet now-this city here is becoming not a good place to be--we qualified and got the certificate years ago, but never used it for various reasons , we were free spirited and moved around-but realtor said we need updated one-I sent out the form today to Cleveland - along with the dd214- any advice on what to watch for -and since we are in the remand level does it matter? We are growing weary, now I am getting sick from all of this stress with this claim and need some peace and quiet on the mighty river- where I will write a bestseller!! -Any tips much appreciated Thanks to all-

[Stretch]

When I paid my GI loan off, I requalified for the GI loan again, about 5 years ago. I haven't tried to purchase anything with the GI loan certificate, but I think it is still good.

[broncovet]

Mrs Vet

Your VA loan approval will ride partly on your credit score. While you are waiting for your benefits, take steps to "clear your credit". Order the free yearly credit report from the

"big 3"..transunion, equifax, and I cant think of the other one.

Write a dispute letter for each "negative" item on your credit report. If they cant confirm it, they have to remove it in 30 days. This should improve your credit score and get it high enough for you to get your loan.

Get a payment calculator..maybe at:

http://www.bankrate.com/calculators/mortga...calculator.aspx

Then, find a home that is for sale in your payment range. Your mortgage payment will need to be no more than about 38% of your income. Example: You earn $2000 per month. Your house payment should not be more than about $ 760 per month which will include taxes and insurance.

A mortgage person can help you, or send me a PM and I can help you figure it out for you.

[12R3G]

Last week, my lender requested an Automated Certificate (ACE) from the VA which showed that my 2 previous loans were paid in full, but the benefit had not been restored Very interesting since I have all 4 certificates the VA has issued to me which contradict what the ACE report to the lender shows.

Turns out that several years ago, the VA centralized the home loan guarantee program--according to my response in iris, the VAROs were not following the rules (ironic, huh?) and granting restoration of benefit in too many cases where restoration should not have been allowed to the tune of zillions of dollars in guarantees. My guess is the certificate you have was issued by a VARO and now you need a new certificate from the central eligibility office.

Did your lender go online and get an ACE. or just decide you need a more recent date on your certifcate? Supposedly, the lender can use the online system to request a new certificate/restoration, although my lender asked for the 26-1880.

Home Loan is seperate from compensation, so a remand for disability compensation should not affect getting a new certificate. If you are already receiving compensation, you are exempt from any funding fees (even if this is not your first VA home loan).

Good luck...

[LarryJ]

:where I will write a bestseller!! -Any tips much appreciated"

Well, I need more information:

Is this going to be one of those novellas.......set in the early 1800's....where the guy and gal are on the cover of the book and he's all buff and has his shirt off and she is climbing his leg? Something with a title like: My Life, My Love, My Plantation Manager. If so, I'm sorry, no help here.

Otherwise, you need to keep it at about 300-400 pages. Needs some drama and some intrigue, lotsa gratuitous sex, all the characters must be beautiful people and they must either know someone in "power", or at least hold some important management position. They have to have a dog, but no kids, and a brand new, very expensive, automobile.

And, lotsa sex, or did I already say that. :D

[Josephine]

Larry J,

Is this the qualifications for a VA Home Loan?

If so, I am surely out.

I am lost in this "Novel"?

Always,

Betty

[Josephine]

The VA Home Loan process is not that difficult.

Just go to your local bank and tell them you want to apply for one.

They can bring all of your information and eligibilty up for you and talk you through the process.

No money down and closing cost are included in the loan if you wish.

Always,

Betty

Edited June 12, 2009 by Josephine (see edit history)

[purple]

I didn't think your credit score mattered that much since it's a VA loan...I only say that because when I got mine I had had a recent bankruptcy and mine went through without any problem.

My credit was nill.

Maybe they've changed their requirements since then.....12 years ago.

[Eric_M]

My advice would be to find a lender/mortgage broker who is familiar with VA loans.

A good test is the waving of the fees for disabled vets, seemed like only a few knew about it.

Shop around. Credit score plays a factor in rates. Your VA certificate keeps you from having mortgage insurance.

Good luck....Eric

[cjevans]

Erick can you please explain about "mortgage insurance" with a VA certificate???? Are you talking about home owners insurance?

[Pete53]

My main advice is that when they try to talk you out of VA loan just say no its a VA Loan or nothing.

[Eric_M]

From what I understand, most people have to pay "mortgage insurance" if they don't have enough down payment, this protects the bank. This increases their monthly payment.

Your VA certificate is the government saying they will cover part of the loan if you default. So no mortgage insurance needed.

Homeowners insurance = we all have that in-case of disaster.

"Va loan or nothing" is good advice, there are lots of loan programs, but VA loans are regulated to help protect you.

It's a great time to buy....Good luck....Eric

[12R3G]

Erick can you please explain about "mortgage insurance" with a VA certificate???? Are you talking about home owners insurance?

From what I understand, most people have to pay "mortgage insurance" if they don't have enough down payment, this protects the bank. This increases their monthly payment.

"mortgage insurance", ususally referred to as "PMI" (Private Mortgage Insurance) is an additional monthly payment if your FIRST mortagage if for more that 80% of the purchase price. $100k house, $80K First mortgage, no PMI...anything above will require you to pay PMI. This is the bank's insurance should you default on your loan.

The VA home loan advantage is a no (or much lower) downpayment, no PMI and, in some areas, higher "conventional" loan limits (short answer, conventional = lower interest rate, jumbo = higher interest rate) than would be available with an FHA, or commercial loan.

Disabled Vets--receiving compensation--are exempt from any VA funding fee (not to be confused with the lender's origination fee which, among other things, pays the loan officer's commission on the loan).

In an odd loophole that only a banker could understand, you can borrow more than 80% of the purchase price of your home using a commerical loan and not have to pay PMI each month. If the lender will go for it (might be a little harder in today's market), you can obtain a first mortgage equal to 80% of the purchase price (no PMI), add a 10% cash downpayment, and borrow the remaining 10% using a second mortgage--closing both loans at the same time. Bankers refer to this as an "80-10-10" loan. While the second mortgage will have a higher interest rate than the first, you'll probably find the monthly payment for the second is less than what the PMI would cost. PMI is lost money to you and is not tax deductible--it only benefits the bank (and the insurer). Second mortgage payments pay down principal on the loan (increasing home equity) and the interest payments ARE tax deductible. Strange, but true--I've used this technique.

Why go commercial vs VA? Interest rates (generally less), underwriting (my experience is that the VA is actually tougher on underwriting than commercial loans since the government is on the hook if you default). I've done VA (2 loans, and probably a 3rd when we move), FHA (2 ?), and commercial (8?) including purchases and refinances. Each has their slightly different standards and quirks. All of them are paperwork nightmares.

[broncovet]

Purple

Yes, your credit score on a VA loan matters. Veterans must meet a minimum credit score: Read this for more details:

http://www.homeloans.va.gov/lp.htm

Mrs. Vet.

No, being a Veteran does not guarantee you will get a home mortgage loan. Unfortunately, at least at times, being a Veteran prevents you from getting a loan.

Read this:

http://www.veteranstoday.com/modules.php?n...le&sid=6686

Edited June 16, 2009 by broncovet (see edit history)

[12R3G]

No, being a Veteran does not guarantee you will get a home mortgage loan. Unfortunately, at least at times, being a Veteran prevents you from getting a loan.

Read this:

http://www.veteranstoday.com/modules.php?n...le&sid=6686

True...that's one major difference between VA and commerical loans. Commercial lenders and Realtors have a vested (financial) interest in the house you are buying passing inspection and appraising for at least the contracted purchase price. The lender chooses the appraiser, and one of the realtors/parties (whoever is paying chooses) picks the inspector. The lender wants an appraiser that will figure out a way to appraise the house so the loan will be approved; everyone "wants" the inspector to find no, or few, defects and most importantly, no major, show-stopping, problems. Appraisers who value homes below contract price too often, and inspectors that find too many problems too often don't get phone calls. I read a few articles pointing fingers at the appraisal system we use as being complicit in the housing meltdown by causing homes to be overvalued.

The VA is a bit more involved in the appraisal and inspection process, and doesn't allow the seller (or buyer for that matter) as much leeway in determining what will or won't be repaired based on the inspector's report (which was probably more thorough if a VA inspection). With a commercial loan, what gets (or doesn't get) repaired is pretty much a seperate negotiation between buyer and seller once both have reviewed the inspection report.

Concrete example: I purchased on house that, based on a roofing contractor's inspection, needed a new roof. Using 3 estimates of cost, I negotiated for the seller to pay me 1/2 the average cost of repair at closing. I never replaced the roof--as far as I know, it's still functioning just fine (I sold the house 4 years ago). The VA would most likely required the seller to repair the roof before approving the loan. I am certain my seller would have backed out of the deal at that point--he didn't want to put a dime into repairs.