VA Loan Questions? ASK HERE! in VA Policies and Procedures Forum

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VA Loan Questions? ASK HERE!

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Ron G	MID SCORE?? +Questions	#61	[url]	[-]
Posts: 545 Jun 8 12 2:42 PM	Hi SandiegoDude: By mid-score do you mean Equifax or is it an average of the 3 scores? That score is 700. trans Union is 689 and Experian is bad @589, I have some meidcal bills and some are new, but there is a story there and I am sure that in your business you have heard plenty. My wife's scores are TU@738, Equifax @709 and Experian@734. I think that my wife is what you would call 24 karat for her credit. We are looking to buy within the next year, we are considering relocation from the Tampa Bay Area to the Denver area which my wife will be working the same Health Care Field. I am 100% P&T and our combined income is approximately $10,000.00 per month. I have several questions for you: 1. The 7 year credit rule: I have some charge off's that will come off in January 2013. Will this affect loan approval a year from now? 2. How does the lender look at the credit scores of the vet and his spouse? Are they combined? 3. We have rented since we have been married and never been late, so will this help me out? 4. I did have a used car financed in 2006 and never missed a payment on it, will this help me, it does show in Equifax? 5. We have a lease on two autos, all in wife's name and credit cards are in her name. 6. How does VA do the debt ratio. Thank you for offering your knowledge. Ron G 100% IHD P&T/100% Prostate Cancer/20% DMII/SMC(s) USAF Jan 66 to May 69-May 71 to May 79/USAF Reserves Jan 80-May 81 Rank at Discharge: Technical Sergeant E-6 633rd Security Police Squadron (Law Enforcement) Pleiku Air Base, Viet Nam March 1967-October 1968 Edited 1 time by Ron G Jun 8 12 2:45 PM.
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Cranky		#62	[url]	[-]
Posts: 117 Jun 8 12 2:57 PM	Hey Dude, I'm in San Diego also, actually Oceanside. Anyway, I finally received a percentage for disability and I would like to have my VA funding fee rolled into my principal since I did not have a percentage while using my VA loan in June, 2011. I filled out a VA Form 26-8937 and sent it to the Phoenix regional office. What else do I need to do? Thanks, Cranky
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SanDiegoDude		#63	[url]	[-]
Posts: 53 Jun 8 12 3:25 PM	Ron G wrote: By mid-score do you mean Equifax or is it an average of the 3 scores? It is the score that lands in the middle between all three- i.e 640, 690, 642 = 642 would be your mid score. They do not use averages. My wife's scores are TU@738, Equifax @709 and Experian@734. In this case your wife's qualifying credit score is 734 (mid-score) which is good 1. The 7 year credit rule: I have some charge off's that will come off in January 2013. Will this affect loan approval a year from now? As Long as the charge offs do not affect your credit to disqualify you based on the Lender's min criteria, you should be fine. 2. How does the lender look at the credit scores of the vet and his spouse? Are they combined? They go by the lowest mid score as the qualifying credit score. 3. We have rented since we have been married and never been late, so will this help me out? The underwriter may request 12 months cancelled checks as an alternate credit line depending on your situation, so as long those (you should be able to download them from online banking) you should be a ok. 4. I did have a used car financed in 2006 and never missed a payment on it, will this help me, it does show in Equifax? Yes, every trade line / loan / revolving credit that has repayment consistent and reliable will help! 5. We have a lease on two autos, all in wife's name and credit cards are in her name. That's why she has better credit than you.. 6. How does VA do the debt ratio. It is called a residual income calculation based on family size, region, mortgage amount, outgoing monthly debts, and income. As long as you are not paying the lion's share of your income to monthly debts (including mortgage property tax, car payments, alimony etc) you should be ok. Thank you for offering your knowledge. Thanks! If you need more detailed guidance based on your particular scenario but don't want everyone at VBN to know your business, don't be afraid to PM me
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SanDiegoDude		#64	[url]	[-]
Posts: 53 Jun 8 12 3:36 PM	Hi Cranky, You should be able to have the funding fee put towards principal or receive a refund check. Follow up with the phoenix regional office and get in contact with your servicer. Once it is determined that you are entitled to your funding fee, they will take the necessary steps to ensure you receive it.
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Cranky		#65	[url]	[-]
Posts: 117 Jun 8 12 7:34 PM	SanDiegoDude wrote: Hi Cranky, You should be able to have the funding fee put towards principal or receive a refund check. Follow up with the phoenix regional office and get in contact with your servicer. Once it is determined that you are entitled to your funding fee, they will take the necessary steps to ensure you receive it. Thank you. I'll contact them on Monday to see if they got my paperwork.
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Ron G	NO PROPERTY TAX FOR 100% P&T VETS IN FLORIDA	#66	[url]	[-]
Posts: 545 Jun 9 12 9:35 AM	SanDiegoDude wrote: Hi Krazy. Your mid-score is 635 which is good enough for most lenders (right now the standard min score is 620) Your income should be fine as long as your monthly debts do not exceed the maximum allowed when calculating your "residual income". Residual income calculation is what the VA uses to determine how much you can afford while maintaining a decent standard of living (after credit cards, car loans, mortgage, insurance, and property tax, you still need enough "residual income" left over to eat and golf!) So basically it comes down to how much you have going out to revolving debt (credit cards etc.), loans (student loans/car loans etc) and any judgement (child support/ alimony etc). If you need to get in touch with a local lender, PM me and I will get you in contact with someone in FL. Best of Luck!!! Remember that in Florida and probably most states, a 100% P&T Vet does not pay any property tax as long as you are living in the home on Jan 1. This information should be found on your county tax collectors web site. So as an example, if you move in into your new home on Aug 1, you should only have to pay property taxes for Aug through Dec. Ron G 100% IHD P&T/100% Prostate Cancer/20% DMII/SMC(s) USAF Jan 66 to May 69-May 71 to May 79/USAF Reserves Jan 80-May 81 Rank at Discharge: Technical Sergeant E-6 633rd Security Police Squadron (Law Enforcement) Pleiku Air Base, Viet Nam March 1967-October 1968
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ArmyBratTurnedVet	Looking to refinance and tap in to lower interest rate.	#67	[url]	[-]
Posts: 39 Jun 13 12 5:32 AM	I would like to use my VA loan to refinance and take my 5% interest rate lower if I could. I live in Ohio, am current on my payments and have my guarantee letter in hand from the VA. What do you suggest I do? Would love to lower that interest rate! Any suggestions?
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SanDiegoDude		#68	[url]	[-]
Posts: 53 Jun 13 12 10:10 AM	Is your current mortgage a VA loan? If so, you could probably do what's known as a VA Streamline Refinance. This type of loan has minimal paperwork and is a breeze to do, and most counties don't require appraisal depending on the investor. I'll get you in touch with a good VA lender in Ohio. Let me know when you're ready via PM.
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sammie1		#69	[url]	[-]
Posts: 136 Jun 14 12 2:24 PM	Hi- I have a 30 year mortgage @ 4.75% with Wells fargo. I have 29 years left on note...Wells fargo quoted 3.8% for 30 year va streamline..are there better rates available on a streamline and what is the estimated cost? I am rated 100& p&T and do not pay property taxes...I only escrow home owners ins. I live in texas. hosue value about 210k and owe 193.
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SanDiegoDude		#70	[url]	[-]
Posts: 53 Jun 14 12 3:09 PM	Here in San Diego, we're locking at 3.625% or 3.75% with a rebate going back to the borrower as long as there are no hits for credit/etc. I would keep shopping!
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silke		#71	[url]	[-]
Posts: 224 Jun 15 12 10:50 AM	SDD....My husband, as well as many Vets on here, have been deemed incompetent for VA purposes and have an appointed fiduciary....if married its generally the spouse who is appointed as payee. With the determination of incompetency is it possible for the Vet to enter into a contract for a VA loan and/or can the fiduciary sign the paperwork for the Vet?
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Ron G		#72	[url]	[-]
Posts: 545 Jun 21 12 11:11 AM	sammie1 wrote: Hi- I have a 30 year mortgage @ 4.75% with Wells fargo. I have 29 years left on note...Wells fargo quoted 3.8% for 30 year va streamline..are there better rates available on a streamline and what is the estimated cost? I am rated 100& p&T and do not pay property taxes...I only escrow home owners ins. I live in texas. hosue value about 210k and owe 193. Check with Navy Federal Credit Union, they are advertising a 3.5% for VA loans if your credit will qualifies you for that rate. ?Check their web site fr locations. Ron G 100% IHD P&T/100% Prostate Cancer/20% DMII/SMC(s) USAF Jan 66 to May 69-May 71 to May 79/USAF Reserves Jan 80-May 81 Rank at Discharge: Technical Sergeant E-6 633rd Security Police Squadron (Law Enforcement) Pleiku Air Base, Viet Nam March 1967-October 1968
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SanDiegoDude	Fiduciary to sign for Veteran	#73	[url]	[-]
Posts: 53 Jun 21 12 12:22 PM	Silke, First off, thanks for your patience, Any time a Veteran has been deemed incompetent the file has to go to the VA for prior approval. The process is that the file goes to the lender's Underwriter- they approve it- it goes to VA-which VA has 10 days to approve/deny the file-then VA has to get the approval of the Fiduciary which takes time- and then we get the approval/denial from VA. If you are the court appointed fiduciary then VA may not have to send it out-it may stay with the VA and the process will be quicker. Remember to allow several more weeks to the process. Let me know if you have any more questions!
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SanDiegoDude		#74	[url]	[-]
Posts: 53 Jun 21 12 2:50 PM	Ron G wrote: sammie1 wrote: Hi- I have a 30 year mortgage @ 4.75% with Wells fargo. I have 29 years left on note...Wells fargo quoted 3.8% for 30 year va streamline..are there better rates available on a streamline and what is the estimated cost? I am rated 100& p&T and do not pay property taxes...I only escrow home owners ins. I live in texas. hosue value about 210k and owe 193. Check with Navy Federal Credit Union, they are advertising a 3.5% for VA loans if your credit will qualifies you for that rate. ?Check their web site fr locations. Ron & Sammiel, Be sure to compare APRs NOT the interest rate if you want to shop around for a good loan. You can get a 30 year VA loan at 2.75% or maybe even lower, but the up front cost to buy down the rate would be very expensive. So... in other words, just because the interest rate may be lower somewhere doesn't mean you will be saving money. Check the APR, compare GFEs and make sure the GFEs are generated on the same day. Market conditions can affect rates between lenders on a day by day basis (hour by hour sometimes!) - you want them all (lenders) on the same playing field to hold as many extraneous variables constant as possible. (Sorry if I am getting too deep with research methods but with a masters in science I get pretty passionate about reliability & validity when it comes to analysis & numbers lol!)
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uscka		#75	[url]	[-]
Posts: 16 Jun 22 12 2:21 PM	Hi I am a widow whose husband was 30 % SC. Can I get a VA loan and would the fee be waived? thanks
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Ron G		#76	[url]	[-]
Posts: 545 Jun 22 12 3:41 PM	SanDiegoDude wrote: Ron G wrote: sammie1 wrote: Hi- I have a 30 year mortgage @ 4.75% with Wells fargo. I have 29 years left on note...Wells fargo quoted 3.8% for 30 year va streamline..are there better rates available on a streamline and what is the estimated cost? I am rated 100& p&T and do not pay property taxes...I only escrow home owners ins. I live in texas. hosue value about 210k and owe 193. Check with Navy Federal Credit Union, they are advertising a 3.5% for VA loans if your credit will qualifies you for that rate. ?Check their web site fr locations. Ron & Sammiel, Be sure to compare APRs NOT the interest rate if you want to shop around for a good loan. You can get a 30 year VA loan at 2.75% or maybe even lower, but the up front cost to buy down the rate would be very expensive. So... in other words, just because the interest rate may be lower somewhere doesn't mean you will be saving money. Check the APR, compare GFEs and make sure the GFEs are generated on the same day. Market conditions can affect rates between lenders on a day by day basis (hour by hour sometimes!) - you want them all (lenders) on the same playing field to hold as many extraneous variables constant as possible. (Sorry if I am getting too deep with research methods but with a masters in science I get pretty passionate about reliability & validity when it comes to analysis & numbers lol!) Navy Federal CU is saying on their web site that for the 3.5 rate you have to buy it down with .25 of a point, which is $500.00, so you are looking at 2k per point. Ron G 100% IHD P&T/100% Prostate Cancer/20% DMII/SMC(s) USAF Jan 66 to May 69-May 71 to May 79/USAF Reserves Jan 80-May 81 Rank at Discharge: Technical Sergeant E-6 633rd Security Police Squadron (Law Enforcement) Pleiku Air Base, Viet Nam March 1967-October 1968
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silke		#77	[url]	[-]
Posts: 224 Jun 22 12 6:22 PM	SanDiegoDude wrote: Any time a Veteran has been deemed incompetent the file has to go to the VA for prior approval. The process is that the file goes to the lender's Underwriter- they approve it- it goes to VA-which VA has 10 days to approve/deny the file-then VA has to get the approval of the Fiduciary which takes time- and then we get the approval/denial from VA. If you are the court appointed fiduciary then VA may not have to send it out-it may stay with the VA and the process will be quicker. ______________________________________________________________________________________________________ Thank you for the explanation of the process....in our case the lenders underwriter refused to approve the loan based on the VA's incompetence determination, nevermind that we are more than qualified for the loan, have a huge downpayment, and a FICO of 730. The lender was more than eager to give us a loan. The VA fiduciary unit assured us they would approve it. Is this a uncommon occurence or are underwriters typically nervous in a situation as this?
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SanDiegoDude		#78	[url]	[-]
Posts: 53 Jun 22 12 7:13 PM	silke wrote: SanDiegoDude wrote: Any time a Veteran has been deemed incompetent the file has to go to the VA for prior approval. The process is that the file goes to the lender's Underwriter- they approve it- it goes to VA-which VA has 10 days to approve/deny the file-then VA has to get the approval of the Fiduciary which takes time- and then we get the approval/denial from VA. If you are the court appointed fiduciary then VA may not have to send it out-it may stay with the VA and the process will be quicker. ______________________________________________________________________________________________________ Thank you for the explanation of the process....in our case the lenders underwriter refused to approve the loan based on the VA's incompetence determination, nevermind that we are more than qualified for the loan, have a huge downpayment, and a FICO of 730. The lender was more than eager to give us a loan. The VA fiduciary unit assured us they would approve it. Is this a uncommon occurence or are underwriters typically nervous in a situation as this? What exactly was their issue with the VA determination of incompetency? If there was a question as to the validity of the claim, the underwriter should have requested a condition as evidence to the validity. Did you receive a credit denial letter? The letter has to state the reason for denial.
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silke		#79	[url]	[-]
Posts: 224 Jun 22 12 10:44 PM	What exactly was their issue with the VA determination of incompetency? If there was a question as to the validity of the claim, the underwriter should have requested a condition as evidence to the validity. Did you receive a credit denial letter? The letter has to state the reason for denial. ______________________________________________________________________________________________________ I had a difficult time getting a straight answer on why it was denied....all they would say is that they had doubts about my husbands ability to sign legal documents due to the VA's determination of incompetence. My real estate agent was contacted by the lender as well and wasnt given a reason as to why it was denied. He was shocked as we had been prequalified by the lender 6 months ago and the lender was eager for us to find a home. We found a home a month ago. Do I have to ask for a credit denial letter or is that automatic? Thank you for all your help, it is much appreciated....I really dont have anyone to talk to about this!
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Rose156	SD Dude, Urgent Assistance Required; 100% Disabled, Verge of being denied, not to VA Loan level yet	#80	[url]	[-]
Posts: 64 Jun 23 12 11:17 AM	Hi San Diego Dude, This is my fourth home, second use of my VA Home loan. VA Loan certificate is clear as of 2005. I'm wondering if you could please assist with info? Middle credit score being used is 655 (low is 622, high is 738). Prior to November of 2010, never missed a payment on anything, including mortgage and all credit cards. One credit card and all other bills, including rent, have remained current. In March of 2008, I purchased a mobile home and placed it on land owned by another individual. We entered into a personal relationship. In November of 2010, he ended the personal relationship and legally evicted me from his property, denying me access to my home. I ended up homeless and received a HUD/VASH voucher. At that time, I was 50% disabled and could no longer pay the mortgage on my home and one CC as I had to save money for rent on the section 8 apartment and related bills. But, continued to pay another CC and all other bills on time. In 2011, a portion of the delinquent CC was paid and the balance was charged off. As for the mortgage, I kept the company informed as to all happenings because I had an active claim with the VA for additional benefits, including IU. They told me (and I have written notes on this, as well as an attorney) they would hold off on repossession of the home in case the claim came through since it was coded "Homeless" with the VA and also had a "Congressional" on it. However, they continued to send letters stating they were accelerating the repossession, but did not actually repossess until March. They then sold the home in March. In April of 2011, I received a letter stating I owed just over $6000.00 after the sale of the home, and another letter stating I could pay $4000.00 to clear all debt and the matter would be considered closed and removed from my credit reports. Of course, I did not have that money and called the number provided, told them I had been notified a decision had been made, but did not know when I would be informed of this decision (my claim was complicated and had been sent back from Washington to the local VARO). I was told to keep them informed of my claim status and they would work out a payment plan to pay off the $6000.00. I was notified in June of my DRO hearing. I attempted to notify the mortgage company so I could work out a payment plan as previously discussed. During one call, an assistant took a message, but I was never called back. A second call resulted in me leaving a voice mail. My calls were never returned. Due to situations with the DRO hearings and SSD, I did not call again until January of 2012 when I received a 1099A which reflected an amount higher than my original loan amount. In addition, I was concerned because all letters received prior insisted I abandoned my home when the company knew I had been evicted from the property and denied access to my home. During that phone call, I was told I did not owe $6000.00, but over $26,000.00. I was never notified of this additional money "owed" and/or "defaulted" on. I pulled my credit reports and discovered an additional $20,000.00 was reported to credit reporting agencies in May; the month after I was sent the letter stating I owed only $6000.00, and a month prior to my calls in June stating my desire to pay back that $6000.00. I obtained legal representation. I sent a letter, per my attorney, requesting a full accounting of my loan, a qualified written request per the Real Estate Settlement and Procedures Act (section 2605(e)). They never responded and I've been informed I now have a legal claim against them for this lack of response. My attorney can see, as can anyone else who looks at all the paperwork associated with this home and what happened, that this company is attempting to claim money I do not owe them, and is quite possibly doing something illegal... very possibly taking advantage of me due to the award of money from VA claims they knew were in the process at the time of repossession. However, though all inspections on the home for which I'm applying for the loan have now been completed, all required repairs have been done, proof of insurance is now available, etc, the underwriter is threatening to deny my loan, not because of the delinquencies (one of which has now been taken care of, the other... the home... I've obtained legal representation due to improper handling and possible fraud), but because she insists the 1099A which was issued means ONLY foreclosure or short sale, neither of which was the case. Every single letter received, as well as ALL credit reports, specifically state "repossession". Nothing anywhere states "foreclosure". The company itself never claims this is a "foreclosure", but a "repossession due to abandonment", and I did not even abandon the home. I have legal eviction papers which prove I was denied access. Copies of everything is being forwarded, including a very detailed letter explaining the situation, with numbers and email to contact my attorney. During all this, I've continued to remain current on another credit card, my rent, and all other bills. This was a one-time only hiccup which devastated my once outstanding credit rating (over 800, yes, true), and I have worked very hard to recover my life back to where it is now. If this loan is denied, I will not even be able to move out of this very tiny HUD apartment, because apartments ask if you have ever been denied a loan! I am 100% disabled for severe migraines and PTSD. I am also service connected for my knees and the apartment in which I live is on the second floor; my knee is getting worse, and now has a torn meniscus. This apartment complex is growing more unsafe and is affecting my mental and physical health. How can my loan possibly be denied? And what can I do to assist this with being approved? Are all veterans who have experienced foreclosures while they were in Iraq and Afghanistan experiencing loan denials as well? I am scared and confused. Please assist with any information you may have. Thank you so much. Rose
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