VA Loans

[schokie]

Researched it when selling my last house. 

 

Someone picks up payments on your loan and debt is transferred to them. They essentially pick up your mortgage where you left off at your original interest rate. They also have to pay you anything above the loan amount if you sell the house for more than your current mortgage payoff.

 

Catch is they have to use their VA eligibility. You can transfer it to someone that doesnt have the required VA eligibility, but then your eligibility remains tied to that loan. That negatively impacts your ability to get another VA loan until the original one is paid off. Also, if they default it will again count against you at the VA, since it was your eligibility. Doesn't affect credit rating though. 

So, good sales pitch if you have a great interest rate. Just make sure to only transfer it to someone that has their own VA eligibility. That way you walk away clean. 

[Marty - Trident Home Loans]

Anybody ever heard of/dealt with the assumption of a VA loan?  I’ve been house hunting for a while and came across a seller who has owned a brand new home for three years, has a quick military move, and is looking for somebody to assume their VA loan. I’ve been trying to get smart on the process should it go forward, but it sounds like it rarely ever happens so not many people know a ton about the process. 

This is more advice geared to a seller thinking about doing this...If you need to provide your buyer with a better rate than they could get otherwise, they must still qualify for the assumption.

There are still title costs and govt taxes, and there is an assumption fee which makes the costs about the same as another mortgage. The difference is that they get a better rate in some cases.

I’ve seen horror stories with a borrower’s VA being tied up or foreclosed on and the Vet loses the benefit.

I’d only allow an assumption if you were certain you wouldn’t use the VA loan again. VA loans rates are significantly lower even when we offer a lender credit to pay the funding fee.

I’d be interested to know why they are pushing an assumption versus you just getting your own loan. It’s not going to make anything go faster and they have much more to lose than gain.

Marty

[Standby]

On 1/20/2018 at 11:59 AM, Truman08 said:

Anybody ever heard of/dealt with the assumption of a VA loan?  I’ve been house hunting for a while and came across a seller who has owned a brand new home for three years, has a quick military move, and is looking for somebody to assume their VA loan. I’ve been trying to get smart on the process should it go forward, but it sounds like it rarely ever happens so not many people know a ton about the process. 

I did an assumption from a family member. Would not recommend for the following reasons: took 6x longer than if we would have just acquired a new mortgage, it costs the same in the end and dealing with BoA was a nightmare. Won’t go into specifics, but in the long run we didn’t save time or money and were locked into a higher interest rate than we PROBABLY could have otherwise qualified for. 

It might be worthwhile for you, though, if the lien holder allows assumptions (not all do) and the equity you will instantly generate is offset by all other factors. 

[Truman08]

Seller seems to be in financial trouble, not to get into the specifics of the matter, and are offering the home with at what is currently left on the loan. As the loan and home are only 3 years old, the remaining principal balance is within $1K of what the home appraised at, based on the rough math I’ve discussed with the lender. We’d be walking into their existing loan at a 3% rate, with 3.5 years already paid off. Can’t see a downside here other than the additional time it’ll take to close. Appears as though the seller assumes the majority of the risk here as long as I qualify for the loan. There’s also the issue for the seller on if their VA benefits will be tied to the loan and should their credit also be tied to it. 

Edited January 22, 2018 by Truman08

[Standby]

After you assume the loan they will get their eligibility back. 

[epsilon]

I just wanted to give my recommendation for Marty at Trident Home Loans.  My process isn't complete yet but I felt like it would be worth letting the bros know the experience so far has been very good.  It's my first time using a VA loan.  Compared to the lender we used before this has been a much better experience.  Marty will take plenty of time to discuss options with you and doesn't try to rush you.  I initially talked to the national bank of Kansas and really didn't enjoy the initial conversation (I felt like I was getting talked down to).

Anyway, we had one minor glitch last week as rates started to rise.  The ladies at Trident called me to give me the head's up and recommended me locking in asap, which I did over the phone. Several days later there was some confusion due to an admin error showing I had actually locked a higher rate.  I brought it up to Marty and he was quick to discuss it with his staff and they cleared things up.  Bottom line is that they did the right thing and honored the lower rate when there was a bit of a gray area .....where other companies might have stuck me with a higher rate or made me fight to prove it.  

I'll let everyone know how the experience ends but at this point I highly recommend Marty's team.  They're super quick to get back to you and process your paperwork.

[Marty - Trident Home Loans]

I just wanted to give my recommendation for Marty at Trident Home Loans.  My process isn't complete yet but I felt like it would be worth letting the bros know the experience so far has been very good.  It's my first time using a VA loan.  Compared to the lender we used before this has been a much better experience.  Marty will take plenty of time to discuss options with you and doesn't try to rush you.  I initially talked to the national bank of Kansas and really didn't enjoy the initial conversation (I felt like I was getting talked down to).
Anyway, we had one minor glitch last week as rates started to rise.  The ladies at Trident called me to give me the head's up and recommended me locking in asap, which I did over the phone. Several days later there was some confusion due to an admin error showing I had actually locked a higher rate.  I brought it up to Marty and he was quick to discuss it with his staff and they cleared things up.  Bottom line is that they did the right thing and honored the lower rate when there was a bit of a gray area .....where other companies might have stuck me with a higher rate or made me fight to prove it.  
I'll let everyone know how the experience ends but at this point I highly recommend Marty's team.  They're super quick to get back to you and process your paperwork.

Thank you Sir! We aren’t perfect but we put ethics first and if I promised something I will deliver even if I have to lose money in the process. With two former mil pilots turned airline guys as owners we are always looking out for fellow pilots and service members.

Our ethics and your satisfaction is far more important than a few dollars. I’ve done loans for zero profit and even lost money many times just to do the right thing. I bet that every dollar lost was recouped by a happy client referring a friend or two. Happy to do it for you and we look forward to you walking away a fully satisfied client! Thanks for taking the time to write a review!

Marty

[Fox 3]

Marty (or anyone with recent experience)-- any recommendation for a VA loan provider in Nevada?  Based on all of the comm on this and other sites, I was hoping you could handle a Nevada mortgage but it looks like that is a state you cannot work with right now.  Thanks in advance to anyone for the gouge.. cheers.   

[Marty - Trident Home Loans]

Marty (or anyone with recent experience)-- any recommendation for a VA loan provider in Nevada?  Based on all of the comm on this and other sites, I was hoping you could handle a Nevada mortgage but it looks like that is a state you cannot work with right now.  Thanks in advance to anyone for the gouge.. cheers.   

Sorry we can’t do that loan for you. I’d be happy to point you in the right direction. I’ll get back to you on Monday...I want to check something first.

Marty

[Fox 3]

Thanks Marty!  Like I said, after hours of talking to co-workers and searching online, I was hoping I could use you and your team but I appreciate any info you can dig up!  

[SPAWNmaster]

Does anyone know if VA loan requires you to live in the house immediately upon purchase? Anticipating being away from the area on orders for another year or so but wanting to jump on our “dream home” now. 

[Marty - Trident Home Loans]

Does anyone know if VA loan requires you to live in the house immediately upon purchase? Anticipating being away from the area on orders for another year or so but wanting to jump on our “dream home” now. 

2 months for you or your wife can satisfy the primary residence clause with a VA if you can’t make it.

Marty

[SPAWNmaster]

1 hour ago, Marty - Trident Home Loans said:

2 months for you or your wife can satisfy the primary residence clause with a VA if you can’t make it.

Marty

Marty - in your experience would I have luck getting an unusual circumstance extension by saying my wife will move in at the conclusion of my current TDY (say within 6-9mo of closing)?

 

Thanks

Edited April 8, 2018 by SPAWNmaster

[Marty - Trident Home Loans]

Have to move in within two months of closing? Or have to spend a total of two months after purchase?   

Thanks

 

 

You have 60 days to move into the property after closing or your spouse can satisfy the requirement. There is also a “reasonable time” clause that should work after your TDY but there are some specific requirements and can’t exceed 1yr from closing. Here is the reference (page 3-12)

https://www.benefits.va.gov/WARMS/docs/admin26/handbook/ChapterLendersHanbookChapter3.pdf

 

You have to sign a legally binding VA doc at closing say you’ll comply so don’t listen to anyone else telling you just to lie.

 

If a VA loan doesn’t work out due to occupancy issues you can still buy it as a “second home” using a conventional loan with 10% down.

 

Hope that helps!

Marty

 

[SPAWNmaster]

1 hour ago, Marty - Trident Home Loans said:

 

You have 60 days to move into the property after closing or your spouse can satisfy the requirement. There is also a “reasonable time” clause that should work after your TDY but there are some specific requirements and can’t exceed 1yr from closing. Here is the reference (page 3-12)

https://www.benefits.va.gov/WARMS/docs/admin26/handbook/ChapterLendersHanbookChapter3.pdf

 

You have to sign a legally binding VA doc at closing say you’ll comply so don’t listen to anyone else telling you just to lie.

 

If a VA loan doesn’t work out due to occupancy issues you can still buy it as a “second home” using a conventional loan with 10% down.

 

Hope that helps!

Marty

 

Thanks. We legitimately want to use it as a primary residence just are tied up on orders for longer than the 2 months. Any agents or lenders you recommend who can help us in New York State?

Edited April 8, 2018 by SPAWNmaster

[Marty - Trident Home Loans]

Thanks. We legitimately want to use it as a primary residence just are tied up on orders for longer than the 2 months. Any agents or lenders you recommend who can help us in New York State?

Absolutely, PM sent

[MilitaryToFinance]

7 hours ago, SPAWNmaster said:

Thanks. We legitimately want to use it as a primary residence just are tied up on orders for longer than the 2 months. Any agents or lenders you recommend who can help us in New York State?

I've been using NBKC for my loan in New York. We haven't closed on the house yet but so far they've been great.

[PilotWife2]

On 4/7/2018 at 2:29 PM, Fox 3 said:

Marty (or anyone with recent experience)-- any recommendation for a VA loan provider in Nevada?  Based on all of the comm on this and other sites, I was hoping you could handle a Nevada mortgage but it looks like that is a state you cannot work with right now.  Thanks in advance to anyone for the gouge.. cheers.   

 I do a lot of business in Nevada and can be of help. Let me know what I can do! I will send you a PM as well. Amy  NBKC Bank 

Edited April 9, 2018 by PilotWife2

[PilotWife2]

23 hours ago, MilitaryToFinance said:

I've been using NBKC for my loan in New York. We haven't closed on the house yet but so far they've been great.

 Let me know if there's anything we can do to help! I will send you a PM as well. Amy NBKC Bank

[sputnik]

Closed a few years ago with National Bank of KC.  No issues.

However.....

Got a letter from tax assessors office saying I'd underpaid my property taxes last year, and I had 30 days to resolve it before they put a lien on our property.   The kind of letter that gets your attention.

Wtf, had a lot of mortgages over the years, this is a first.

Call NBOKC, they say they are aware, not sure what happened, be resolved soon.

Silly me, I thought I'd get a phone call.  Instead I get a letter I had to read 3 times before I believed what I was reading.  In summary, they paid it, it wasn't their fault, in the future I need to handle this myself.

Yes, I need to figure out how much they are going to underpay my taxes out of the funds they collect from me for that very purpose, and pay them myself.

I call the "if you have any questions" number, listen to an inane amount of crap I don't care about so I can talk to a person only to find out their hours suck and you can't leave a message.

Here's a message, I'm getting a new bank assclowns

[PilotWife2]

  I sent you a PM to see if there's anything I can do to help. I suspect since you closed a few years ago, you are posing your questions directly to the servicer rather than the loan officer who originated the loan. Hopefully I can help you sort through this! 

[Marty - Trident Home Loans]

Marty (or anyone with recent experience)-- any recommendation for a VA loan provider in Nevada?  Based on all of the comm on this and other sites, I was hoping you could handle a Nevada mortgage but it looks like that is a state you cannot work with right now.  Thanks in advance to anyone for the gouge.. cheers.   

PM sent. Have a great day!

Marty

[bennynova]

What are current rates for. 30 year Va?

[PilotWife2]

 Sent you a PM with my direct contact info. A lot of different variables impact rate pricing so need some specifics from you. Please note my VA loans are offered with no points, no origination or broker fees, and also no junk fees like processing our underwriting. Look forward to hearing from you! 

[Marty - Trident Home Loans]

What are current rates for. 30 year Va?

Like Amy said lots of variables go into it. I’ll send you a PM of what I’m locking today. Like I just told someone else... Big lenders have large advertising costs/overhead that we don’t and they don’t have as much discretion in pricing as well which give Trident a lot of flexibility. It’s how we’re able to consistently give such great deals to fellow pilots and military members.