FAQs

How do I refinance using my VA Home Loan?

You can use your VA home loan benefit to refinance your existing VA home loan to a lower interest rate, with little or no out-of-pocket cost. This is called an Interest Rate Reduction Refinancing Loan (IRRRL), also known as a “rapid refinance” or a “streamline refinance.”

Generally, no appraisal, credit information, or underwriting is required for this refinancing option, although some lenders may require an appraisal and credit report. The fees and charges associated with the refinancing loan may be incorporated

How do I refinance using my VA Home Loan?2020-05-22T13:31:14-07:00

What documents do I need?

VA ELIGIBILITY INFO Certificate of Eligibility:
Obtain VA Form 26 1880, Request for a Certificate of Eligibility for VA Home Loan Benefits

CREDIT INFORMATION

  • Latest credit card statements, indicating minimum payments and account numbers
  • Name, address, and phone number of your landlord, or 12 months of cancelled rent checks
  • If applicable: copy of complete bankruptcy and discharge papers
  • If applicable: if you co-signed for a mortgage, car, credit card, etc.,
What documents do I need?2020-05-22T13:34:11-07:00

How do I apply for my VA Home Loan?

There are four basic steps in the VA home loan application process. 

Step 1: Select a Lender A lender can help you review your financial situation and credit history and determine the loan amount you qualify for. Choose a lending institution that is VA approved and can handle home loans.

Step 2:

How do I apply for my VA Home Loan?2020-05-22T13:35:53-07:00

Am I eligible for a VA Home Loan?

The major eligibility categories for a VA home loan include:

  • Veterans and service persons who have served 181 active-duty days during peacetime, unless discharged or separated from a previous qualifying period of active duty service
  • Veterans who served during World War II, Korea, or Vietnam, if they served for 90 days and were honorably discharged
  • If you have served for any period since August 2, 1990, you can also qualify if you have served 24 months of continuous active duty,
Am I eligible for a VA Home Loan?2020-05-22T13:37:09-07:00

What is the most I can borrow using my VA Home Loan?

There is no maximum loan amount; however, VA does limit its guaranty. VA loans have no loan limit any more as of January 1, 2020. If you make a down payment, your lender may loan a larger amount. While not a down payment, the guaranty often satisfies the lenders’ requirement that a portion of the home price be paid for up front (i.e. the down payment). This can save the home buyer the burden of making a down payment. The

What is the most I can borrow using my VA Home Loan?2020-05-22T13:38:30-07:00

Should I put my spouse on the loan?

That depends on his/her credit and DTI.

If you can qualify on your own, usually it is better to keep it that way. If you add a spouse with a lower credit score, that could make your interest rate increase.

If you add a spouse with a higher DTI that you, that will make it a more difficult approval process.

Your Vetted VA Loan Office will be able to work over all the facts and math and show you all the options available

Should I put my spouse on the loan?2020-05-22T13:39:54-07:00

Can I use my VA loan benefit if I have a co-borrower who is not my spouse and not a Veteran?

It is True. You can use your VA loan with a non-spouse co-borrower who is ALSO not a Veteran.

A VA loan is a government-backed mortgage for a qualifying Veteran or Service member.  In these cases, with a non-spouse co-borrower who is also not a Veteran, they’re usually going to require a down payment of 12.5 percent to 14.5 percent.

Why the strange calculation? The VA typically guarantees, or insures, 25 percent of the Veteran’s loan. Having only one VA-eligible co-borrower on

Can I use my VA loan benefit if I have a co-borrower who is not my spouse and not a Veteran?2020-05-22T13:45:22-07:00

Mortgage math can be confusing when looking at income and debt. What is the deal with Debt-to-Income ratio, and what does the VA require for this?

Debt-to-Income (DTI) ratio is your total monthly debt payments divided by your gross monthly income.

Let’s assume you are an E-6 over 8 years (base pay of about $3500/month), with housing allowance of $1500/month, and subsistence allowance of $365/month. Your total monthly income is $5365/month.

VA guidelines do not have DTI limits, but as a rule of thumb, most loan officers limit pre-approvals to 50%. So, if you make $5,365/month, you would most likely not be issued a pre-qualification letter with a

Mortgage math can be confusing when looking at income and debt. What is the deal with Debt-to-Income ratio, and what does the VA require for this?2020-05-22T14:45:25-07:00

I qualify for a VA Home Loan and I have a decent credit score. Why do I have to go through underwriting and have people dig into my life?

The 3 Cs of Mortgage Underwriting are:

  • Character
  • Capacity
  • Collateral

If you have all these, you will be approved. If you are not approved, your loan officer sucks.

Character:

  • Is your credit score high enough? Usually 580 is good enough. Higher is better for 2 reasons: lower rate and less stipulations from the underwriter.
  • Do you have sufficient credit depth? Generally, you need all on-time payments in last 12 months.

Capacity:

  • Do you make enough money to cover all your debts, including
I qualify for a VA Home Loan and I have a decent credit score. Why do I have to go through underwriting and have people dig into my life?2020-05-22T14:45:59-07:00

A common myth is that Veterans can’t pay over appraised value so they can’t compete in a market where it is a common practice to get your offer accepted, or Veterans can’t pay for pest repairs themselves and must be paid by the seller.

A Veteran can choose to pay above appraisal value, but the difference above the appraised value is a closing cost and not part of the loan. It also cannot be covered by credits and must come from the Veteran’s funds (which can include gift funds).

Pest repairs can also be paid for by the Veteran. It is often a far better use of funds than putting in a down payment or having mortgage insurance with other loan options that don’t require

A common myth is that Veterans can’t pay over appraised value so they can’t compete in a market where it is a common practice to get your offer accepted, or Veterans can’t pay for pest repairs themselves and must be paid by the seller.2020-05-22T13:52:59-07:00
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