VA Loans

[Marty - Trident Home Loans]

14 hours ago, Kenny Powers said:

What are the rules regarding VA loans and how you deconflict them when selling a home financed with a VA loan and purchasing a new home with a VA loan, like during a PCS? Does the 1st loan have to be paid in full before you have full entitlement for the 2nd loan?

Amy gave some good info.  I'd also add the VA to Conventional refi option.  If you want to keep the house but still need to free up your entitlement you can refi it into a conventional loan and do a one time restoration of your VA entitlement once you close on the refi.  You'd want to close on the refi before going under contract on the new house so you get the lowest rate (primary residence vs an investment property).  You'd have closing costs on the refi but some states don't tax refi's so closing costs can be reasonable.  If you're going to an expensive area (DC, Cali, etc) and think you'll need a jumbo loan (over $484,350) than freeing up your VA is the way to go.  VA jumbo's require little to no down payment and our jumbo rates are super low compared to other lenders.

If you don't need your full entitlement to buy the new place then I'd just calculate how much entitlement you have left and then bring the 25% difference of the purchase price - entitlement remaining.  This could vary well be the cheapest option.

I've attached a VA entitlement calculation example/worksheet.  The simplest way to figure out what is the best move is to just give me or Jon a call.  Happy to talk through any scenarios.  Better to start exploring options well before you need to execute.

Cheers!

Marty

marty@mythl.com

cell: 850-346-0250

guaranty_calculation_examples.pdf

[aarp]

On 4/22/2019 at 7:31 PM, Marty - Trident Home Loans said:

Only heard great things about Josh in AZ! Recently referred another baseops guy to him and got great feedback. Great service and a great rate. I’d definitely shop the loan with him.

Marty

Josh Goldberg
Mortgage Planner
Direct: 480-459-4516
Cell: 480-510-6350
EFax: 480-718-7980
Main office: 480-459-4500
Josh.Goldberg@barrettfinancial.com


Sent from my iPhone using Tapatalk

Just wanted to post a follow up now that I've closed and signed with Josh. He went above and beyond for a first time home buyer and always had time to explain little details and answer any question.

True to your word, Marty, he quoted his best upfront and didn't play any games like the broker my real estate agent had me get a quote from.

He also seamlessly helped us push back closing a few days with no fees when we ran into a problem right at the deadline. In addition, he wouldn't let the title company finalize their portion until he ensured that I was getting every penny of concessions that the sellers agreed to (the title company was trying to leave $400 on the table). I wouldn't hesitate to fully recommend Josh for anyone looking at a house in Arizona.

I also had a great interaction with Amy at NBKC and wouldn't hesitate to use them in the future. It just came down to Josh beating their rate.

[Marty - Trident Home Loans]

9 minutes ago, aarp said:

True to your word, Marty, he quoted his best upfront and didn't play any games like the broker my real estate agent had me get a quote from.

Great to hear!  Thanks for the feedback!

Marty

[PilotWife2]

Potential BIG news on the VA front:  https://www.nar.realtor/washington-report/congress-passes-va-loan-bill

In short, it's expected the President will sign an act that will eliminate the cap on the VA home loan guarantee meaning you could qualify for a VA home loan with zero down at any price point.  Leads to a lot of speculation regarding how 2nd tier entitlements will work (using a VA loan for a subsequent home loan purchase while keeping the original loan financed with VA), and how much the VA funding fee may change as well...  

Standby for updates! 

[daynightindicator]

Shout out to Amy and NBKC for another seamless VA home loan. This is my third loan with her (two home loans and a refi, all VA) over ten years and the experience only gets better. All paperwork completed over the interwebs with the exception of the final documentation that required wet signatures/notary. From offer acceptance to closing was ~20 days. Rate was exceptional.

[LookieRookie]

16 hours ago, PilotWife2 said:

Potential BIG news on the VA front:  https://www.nar.realtor/washington-report/congress-passes-va-loan-bill

In short, it's expected the President will sign an act that will eliminate the cap on the VA home loan guarantee meaning you could qualify for a VA home loan with zero down at any price point.  Leads to a lot of speculation regarding how 2nd tier entitlements will work (using a VA loan for a subsequent home loan purchase while keeping the original loan financed with VA), and how much the VA funding fee may change as well...  

Standby for updates! 

Crazy

[PilotWife2]

We are waiting for official word from VA, but looks like the VA funding fee percentages will stay the same, but there will be NO limit for 100% financing.  Stay tuned....

 

[PilotWife2]

14 hours ago, daynightindicator said:

Shout out to Amy and NBKC for another seamless VA home loan. This is my third loan with her (two home loans and a refi, all VA) over ten years and the experience only gets better. All paperwork completed over the interwebs with the exception of the final documentation that required wet signatures/notary. From offer acceptance to closing was ~20 days. Rate was exceptional.

Thanks so much!  Always a pleasure working with you! 

 

[Heavywanabe]

For a initial VA loan how do they determine your status, as in if you’re a reservist but on active duty orders, what funding fee rate will be charged? My broker has no clue so he just went with the 2.4% because I’m in the reserves. 

[flammable]

1 hour ago, Heavywanabe said:

For a initial VA loan how do they determine your status, as in if you’re a reservist but on active duty orders, what funding fee rate will be charged? My broker has no clue so he just went with the 2.4% because I’m in the reserves. 

You have an eligibility letter. If its your first time its 2.15, and then subsequently they start charging. The VA puts out a chart.

 

https://www.valoans.com/purchase/closing-costs/

[Marty - Trident Home Loans]

31 minutes ago, Heavywanabe said:

For a initial VA loan how do they determine your status, as in if you’re a reservist but on active duty orders, what funding fee rate will be charged? My broker has no clue so he just went with the 2.4% because I’m in the reserves. 

The VA issues you a certificate of eligibility (COE) based on your service history used to qualify you.  When applying for a COE you list your component (AD, Reserves, or Guard) along with dates of service.  You then may need to provide supporting documentation (ie. statement of service letter from your CC or a proof of service letter from vMPF) if the VA doesn't already have the documentation in their automated system.  Your funding fee will then be based off the COE they issue.  There is an entitlement code on the top left of the COE which is typically 5, 10, 11.  11 is someone who earned it through the reserves and 10 is active duty.  If you're an activated reservist on title 10 orders (not for training) you can get qualified using the active duty funding fee if you meet the criteria. (2yrs or 90 days wartime/181 days peacetime)

The VA uses manual M26-1 Chap 7 to determine how you've earned your entitlement which goes into a lot more detail on the subject.  It's worth reading to save the money if you think you qualify.  Your lender can go into the VA system and submit a correction for you.

https://benefits.va.gov/WARMS/docs/admin26/m26_01/CertificateofEligibilityandEntitlementFINAL.docx

Might be a red flag if you have to teach your broker how to do a VA loan though.  There are a lot rules/processes on VA loans which might bit you later if your broker doesn't know what he/she is doing.  

Good luck!

Marty

 

[Heavywanabe]

1 hour ago, Marty - Trident Home Loans said:

The VA issues you a certificate of eligibility (COE) based on your service history used to qualify you.  When applying for a COE you list your component (AD, Reserves, or Guard) along with dates of service.  You then may need to provide supporting documentation (ie. statement of service letter from your CC or a proof of service letter from vMPF) if the VA doesn't already have the documentation in their automated system.  Your funding fee will then be based off the COE they issue.  There is an entitlement code on the top left of the COE which is typically 5, 10, 11.  11 is someone who earned it through the reserves and 10 is active duty.  If you're an activated reservist on title 10 orders (not for training) you can get qualified using the active duty funding fee if you meet the criteria. (2yrs or 90 days wartime/181 days peacetime)

The VA uses manual M26-1 Chap 7 to determine how you've earned your entitlement which goes into a lot more detail on the subject.  It's worth reading to save the money if you think you qualify.  Your lender can go into the VA system and submit a correction for you.

https://benefits.va.gov/WARMS/docs/admin26/m26_01/CertificateofEligibilityandEntitlementFINAL.docx

Might be a red flag if you have to teach your broker how to do a VA loan though.  There are a lot rules/processes on VA loans which might bit you later if your broker doesn't know what he/she is doing.  

Good luck!

Marty

 

Thanks for the info. I’m title 10 (for training), so looks like I’ll have the 2.4. PM me if you guys know a good person to work with in Kansas. 

Thnks hw 

[PilotWife2]

18 hours ago, Heavywanabe said:

Thanks for the info. I’m title 10 (for training), so looks like I’ll have the 2.4. PM me if you guys know a good person to work with in Kansas. 

Thnks hw 

NBKC  Bank is located in Kansas City, and do a lot of business on the Kansas side.  Let me know if I can be of help!  

[MT near]

Any update on the new limit increase?

[Swizzle]

Effective 1 Jan 2020

[Marty - Trident Home Loans]

Any update on the new limit increase?

Crickets so far. I heard 1 Jan 20 for the effective date as well. There is a lot of guidance that needs to be hashed out and published still.

Marty


Sent from my iPhone using Tapatalk

[PilotWife2]

We are still waiting for VA's official roll out...We are in hurry up and wait mode with the VA..

[Swizzle]

https://www.congress.gov/bill/116th-congress/house-bill/299

Became Law, law has details....page 9 and 10 for fees...

Excerpt pg. 9 attached...law has other details with which VA must comply. 

 

 

Edited July 13, 2019 by Swizzle
Rochefort 10

[Cork]

I have a question that I figure would tie in with this. Has anyone out there been approved for a mortgage while only being a partime ANG officer?

I've been in for a few years now, prior E now a pilot, and basically all my income has been the classic feast/famine of ANG orders. Even as a pilot (I'm still in training) I don't expect full-time when I get done.

I believe between my wife and I we will comfortably afford the mortgage but how would the bank look at this? When I bought a car I just showed them my last few LES's and bingo got approved but I know this sort of thing won't work like that. Or will it?

Sorry for the long winded question but basically, has any true partimers navigated this sort of thing? 

Thanks!

[hindsight2020]

3 hours ago, Cork said:

I have a question that I figure would tie in with this. Has anyone out there been approved for a mortgage while only being a partime ANG officer?

I've been in for a few years now, prior E now a pilot, and basically all my income has been the classic feast/famine of ANG orders. Even as a pilot (I'm still in training) I don't expect full-time when I get done.

I believe between my wife and I we will comfortably afford the mortgage but how would the bank look at this? When I bought a car I just showed them my last few LES's and bingo got approved but I know this sort of thing won't work like that. Or will it?

Sorry for the long winded question but basically, has any true partimers navigated this sort of thing? 

Thanks!

I did it as a trougher during my days as TR, and I didn't have a civilian job (hence, the term trougher). Bank required LES and tax returns for prior years. I got approved. 

The moniker TR/DSG may be technically true, but I didn't consider myself a "TR" when I was working as much as a full timer and with no civilian job, for cents of the dollar of course, which is why I left that unit after years of empty promises for one who would offer me employment parity (AGR in my case, and I never looked back). But I digress.

So yes, it's possible.

[fou]

15 hours ago, Cork said:

I have a question that I figure would tie in with this. Has anyone out there been approved for a mortgage while only being a partime ANG officer?

I've been in for a few years now, prior E now a pilot, and basically all my income has been the classic feast/famine of ANG orders. Even as a pilot (I'm still in training) I don't expect full-time when I get done.

I believe between my wife and I we will comfortably afford the mortgage but how would the bank look at this? When I bought a car I just showed them my last few LES's and bingo got approved but I know this sort of thing won't work like that. Or will it?

Sorry for the long winded question but basically, has any true partimers navigated this sort of thing? 

Thanks!

I previously used NBoKC (saw the recommendations here) and everything was super easy. 

Like Hindsight said, you will just have to give LESs and several years of history.  Also, if needed, you can get your commander to write a letter saying you have xx amount of drills, xx amount of FTPs, AT days, etc and at 1LT pay, you will be guaranteed to make xx dollars.  It may take a little more effort for part-timers to get it done, but it happens all the time. 

[Marty - Trident Home Loans]

you can get your commander to write a letter saying you have xx amount of drills, xx amount of FTPs, AT days, etc and at 1LT pay, you will be guaranteed to make xx dollars.  It may take a little more effort for part-timers to get it done, but it happens all the time.

Spot on. All you need is a statement of service letter from your CC stating your projected income. Previous income will still be verified but a statement of service letter is the end all be all for reservists or folks separating who don’t have an income history in the reserves yet. Our underwriters understand that reservists income fluctuates. Jon is an AF reservist and our underwriters know that he understands reserve pay better than they do. You shouldn’t have an issue.

Cheers!
Marty
850-346-0250
marty@mythl.com


Sent from my iPhone using Tapatalk

[BADFNZ]

Is there such thing as a mortgage pre-approval just to see what amount I could be approved for?  I don't have a specific house in mind, but I do have a dollar amount that I'd like to shoot for.  I'm an AD Major that's separating soon with an airline CJO and hoping to move in the near future.

@Marty - Trident Home Loans, I used you guys for my last refinance and had a great experience.

Edited July 28, 2019 by BADFNZ

[Cork]

Thanks for the info guys really appreciate it. 

[Marty - Trident Home Loans]

5 hours ago, BADFNZ said:

Is there such thing as a mortgage pre-approval just to see what amount I could be approved for?  I don't have a specific house in mind, but I do have a dollar amount that I'd like to shoot for.  I'm an AD Major that's separating soon with an airline CJO and hoping to move in the near future.

@Marty - Trident Home Loans, I used you guys for my last refinance and had a great experience.

Hey, absolutely happy to help!  We also enjoyed working with you last time around.  Drop Jon an e-mail or call when you have some time with.  Just need to know what the plan is for your current home, what airline you're going to and their training pay, when you start class, when you expect all the background checks done,  when you finish terminal, if you're doing the reserves, if so how much you're thinking you'll make, credit score, monthly debt obligations, and cash available.  Don't need to pull credit or anything at this point unless you want us to.

We do a lot of loans for folks who are transitioning and we can come up with a good plan for you.  It's smart that you're thinking about this now.

Jon's info is 850-377-1114 or jk@mythl.com.  

Cheers!
Marty