VA Mortgage Loan | (New to Mortgages)

[Anonymous]

So.  I'll try to keep this as brief as possible.

Girlfriends dad is a veitnam vet.  He has been tenatively approved for a 100k (includes insurance, and property tax) loan based on $750/mo.  (41% of income) ...  that should change to $888 soon,  so not sure how much more that loan amount will go up to. 

This is the first time I've ever (or any of us) have dealt with a home mortgage.  He is getting up there in age, and the idea is to take advantage of his benefits (which is like pulling teeth with him) and get him into a house.  Ultimately it's where we will be living,  and we are looking to get him his own space also.

Anyway - I just thought I'd post here to get anyones experiences,  thoughts, input, help, advice....  

This is a great forum and I've learend a TON being on here,  so THANK YOU in advance for any thing you'd like to contribute. 

[kc0039]

I've dealt with VA loans that can go higher than 41% DTI. The key is residual income

[DallasLoanGuy]

do you have specific questions?   was th loan officer not able to answer them?

[Anonymous]

I don't have anything specific.  The loan officer has been very helpful.  The reason I post here is that a lot of times there's angles that I don't see,  or information that is not readily shared,  that can benefit throughout the process.  

Everything is going smoothly so far...  I just don't want to run into any 'gotchas' or any stupid issues I could avoid.  

I guess it's all pretty cut n dry with VA loans.  

[Anonymous]

I guess one question I would have is...  and I tihnk I know the answer already...  but there's no ability to have any additional people added to the loan,  or any other sources (people) added as payees or sources of income?   

The issue he's running into is wanting to buy back an old peice of property he grew up on and raised his family on.  The cost is $150k+...  but his income is only from VA and SS.  I doubt we'll be able to go this route for him,  but he's pretty passionate about it, so I'm trying to figure out a way. 

[VALoanMaster]

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@Anonymous wrote:

I guess one question I would have is...  and I tihnk I know the answer already...  but there's no ability to have any additional people added to the loan,  or any other sources (people) added as payees or sources of income?   

The issue he's running into is wanting to buy back an old peice of property he grew up on and raised his family on.  The cost is $150k+...  but his income is only from VA and SS.  I doubt we'll be able to go this route for him,  but he's pretty passionate about it, so I'm trying to figure out a way. 

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Hi Nate,

You can have additional people on the loan BUT if they're not a spouse or another Veteran, they would have to put 12.5% down.

You need to ask your loan officer why he is limiting your girlfriend's father to 41% on the DTI. Generally the only time that happens is if the file is a manual underwrite & even then 41% is not set in stone. I've had underwriters approve VA manual underwrites with a DTI as high as 48%. Another "trick" is to gross up the VA & SSC income since it's not taxed & that could help get the purchase price bumped up.

The other question I have is, are you sure that his total monthly income is only $750? The reason I ask is 41% of that would be $307.50 & that is no where near enough to cover a 100K loan plus taxes and insurance.

[Anonymous]

Awesome - Thanks for that info!!   Your name is very fitting lol

The $750 is 41% of of his current (estimated) income...  which was $1500,  but he did the 'trick' you mention to pump it up to $1800 because it's non-taxed,  so can be counted as 125% of that total. 

After we got all the documentation it's actually $1734/mo.  ...  which is my math is correct 125% = $2167 and 41% of that = $888

So, that's where we're at.  

As far as the DTI...  I do think this is a manual underwrite (if you'd care to elaborate on that, I'm all ears... er eyes).   I will ask the loan officer why, and if he can increase it. Do you have any tips on what I should ask or anything I should elaborate on?