VA Loan Basics

How to Calculate Income from an LES

Leave and Earning Statement (LES)

As a borrower or lender, it is important to know how to of calculate qualifiable income shown on the leave and earnings statement, otherwise known as an LES. The ability to understand what income matters and what factors affect qualifiable income occurs once it is known qualifications include more than income.  Visually seeing an LES is a good place to start. Start by opening an LES

How to Calculate Income from an LES2023-12-11T14:49:47-08:00

How to Apply for a VA Home Loan With a Certificate of Eligibility

In recognition of your service, the Department of Veterans Affairs financially backs home loans for Veterans, Active Duty Service Members, National Guard, Reserves and some surviving spouses. VA home loans can be used to buy a single-family home or condo, purchase and renovate a house, or build a new home, often with no down payment required in many circumstances.

One of the stipulations to apply for a VA home loan is that you must show your mortgage lender

How to Apply for a VA Home Loan With a Certificate of Eligibility2023-12-11T14:49:48-08:00

Tidewater Appraisal

The VA Appraisal

I want to concentrate on the appraisal process when it comes to the tidewater process

Let’s say the lender has already ordered your appraisal, and the VA has assigned an appraiser. The VA has experienced appraisers in its marketplace. They are required to have a certain level of experience appraising properties before they are permitted to apply for the VA’s appraisal panel. Since they are associated with the VA,

Tidewater Appraisal2023-12-11T14:49:48-08:00

Interest Rate Reduction Refinance Loan


All right, let’s get into our first type of refinance loan. And this is the interest rate reduction refinance loan, also known as the IRRRL, Interest Rate Reduction Refinance Loan. It’s taken me a couple of times to say it. So here we are. And the purpose of the loan is in the name. The purpose is to refinance and reduce the veteran’s interest rate.


One of the benefits, of course,

Interest Rate Reduction Refinance Loan2023-12-11T14:49:48-08:00

The Standard Purchase VA Loan

VA Loan Requirements

Before we get into the standard purchase, we need to remind ourselves of some of the basic eligibility requirements to participate in the VA home loan program. So first of all, is this person a veteran, if so, we need their COE. Do they have their DD214? Did they provide their statement of service that verifies they’re actually eligible to participate in the

The Standard Purchase VA Loan2023-12-11T14:49:48-08:00

Prepay Interest Rates in Advance using Discount Points

1% Discount Points to Buy down Interest Rates

Discount points are an upfront fee paid on a loan to buy down the interest rate.  One discount point on a loan will be equal to one percent of the loan amount.  Discount points are used to prepay interest in advance to lower the monthly payment by lowering the interest rate over the term of the loan.  Lowering the interest rate on a home

Prepay Interest Rates in Advance using Discount Points2023-12-11T14:49:49-08:00

Cash-to-Close is more than Closing Cost

Estimated Cash-to-Close

The terms get incorrectly used interchangeably but are actually different. Closing costs and prepaids are expenses necessary to close on your home. Cash to Close is the total net amount you pay at the actual loan signing and is the net sum total of the closing costs, prepaid items, discount points, down payment, and after the application of any credits.  The earnest money deposit paid when an offer was made is deducted

Cash-to-Close is more than Closing Cost2023-12-11T14:49:49-08:00

Education is the Biggest Piece of the VA Lending Puzzle

People think that sellers have some sort of a bias against VA offers. Think about this situation: There are five offers for a property and the best offer is the offer with a VA loan. The seller or agent might compare that to a conventional loan offer where the buyer is putting down 30%. They immediately know if they can make up that gap if an appraisal comes in low, so they choose the conventional

Education is the Biggest Piece of the VA Lending Puzzle2023-12-11T14:49:49-08:00

5 Questions About Using a VA Loan

My closing costs on a $415,000 home loan in Florida are $20,000. Is that about right?

This can’t be answered without looking at many more details, such as who is paying title insurance, if it’s including escrows, and if it’s exempt from a funding fee. It’s too difficult to provide everything that’s needed to be able to answer the question in a public forum since personal information will need to be addressed, such as

5 Questions About Using a VA Loan2023-12-11T14:49:49-08:00

What is an Appraisal Waterfall??

Circular Update

On July 22, 2022, Circular 26-22-13 was introduced. The title of the new circular is Procedures for Alternative Valuation Methods, but we will refer to it as an Appraisal Waterfall.

As of right now, the VA is giving certain allowances on appraisal and inspection processes for borrowers who meet certain qualifications. The Veteran must be making a down payment of at least 20 percent of the purchase price.

What is an Appraisal Waterfall??2023-12-11T14:49:49-08:00
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