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VA Questions

willk86
New Member

VA Questions

Hello All,

 

I have been lurking this forum page for quite a while and I have some questions regarding VA loans! I am currently active duty in my last year of enlistment. I understand the guidelines and what documentation will be needed, but my questions are directed towards whether or not I will be approved and the possibilities of amounts.

 

1. I am looking in the MD/DC area and housing is about 380k-450k for what my wife and I are looking for. Does a VA lender take the area you are purchasing into account when approving loan amounts? I know the max VA benefit is determined by area, but I don't want to get my hopes up for nothing.

2. My wife is not working and we don't plan on having her go back to work anytime soon. Would it be best if her credit is less than satisfactory to stay off the loan?

3. General likelihood of getting approved for the $450k range with my stats? Info below**

 

Info:

FICO 5/4/2 Mortgage Scores - 613/635/600

Income- Mil RMC (Civ equivalent) = 65k, provisional offer for 120k in a related field to Navy job.

Debt - Student Loan total balance = 36k, 5300/5950 UTI on revolving accounts (that I am primary), 7140/15950 UTI (primary and AU accounts). Student Loans in deferment until 2028.

Payment History - 82%, lates on student loans (FEB 2018 is last late on student loans), 4 lates on revolving accounts (from 2020, in process of removing 3 for COVID relief)

 

Thanks in advance for any advice or info!

Message 1 of 9
8 REPLIES 8
flexin222
Contributor

Re: VA Questions

I can tell you as a disabled vet is if you are still in service, use the NFCU or the USAA. Disabled vets also have fees taken off VA loans. Another resource is Jake Broe/Navy on YouTube and a military resource that talks about finance, credit cards and the VA loan. Some lenders will use low Fico scores and spouses against you so they can make more interest on you. There is a lot of predatory lending out there and you have to be very careful and use due diligence. I am going through the VA process and with low inventory and marked up prices on homes...It's like an Mad Max movie! These owners want higher prices which is their option, but after the VA appraisal which comes in at neighborhood comps, it bursts their bubbles. Property I'm going for right now is gonna hurt the owners feelings when the appraisal comes in. Enough about me...With your scores and debt i would guess you'd get 150-200K you need to run the numbers if you are gonna pull the gun RIGHT NOW! Remember that if you run the numbers it will lower your score temporarily. Otherwise, build up your score by paying off what you can and gardening your credit. Remember, there's nothing wrong with a condo or starter home and even though I'm aprroved for more house, I'm staying on a budget and trying to live BELOW my means. Hard times are coming my friends and good luck to your family!!!









Message 2 of 9
Katiemay25
Frequent Contributor

Re: VA Questions

Hello,

I'm a Vet and I live in the same area. I was preapproved for a new build in Feb. I was approved for more than I expected. I went with the builder's lender because they gave me $20K towards closing. They had the same rate as Navy Fed.

I got my realtor from Navy Fed Realty Plus program. You will get a refund deposited in your account when you close. The amount depends on the loan. If you don't like the realtor you can get a new one. I would suggest you get preapprovals from Navy Fed and local lenders. Depending on the county there are programs to help with closing costs in MD. I got some links for you. After I answer your questions

1) They will base your preapproval from DTI and credit profile.
2) You don't have to put her on the loan. You can put her on the deed after you close.
3) I have 7 lates on my credit ranging from 2018 -2019. Some local lenders will be able to get your current scores. If you can try to get them up for a better interest rate.

Realty Plus:
https://realestateperk.com/RealtyPlus/

VA 1st time home buyer FB group - so much info and no sleazy sale pitches:
https://www.facebook.com/groups/VAHomeLoan

Local Banks that are good to vets in the DMV:
https://firsthome.com/loan-officers/scott-betley/


https://eaglebankhomeloans.mymortgage-online.com/GaryAthey.html

 

Maryland Homefront: T​he Veterans and Military Family Mortgage Program (Maryland Homefront):
https://mmp.maryland.gov/Pages/Homefront.aspx

 









Message 3 of 9
MauiMan85209
Established Contributor

Re: VA Questions


@flexin222 wrote:

I can tell you as a disabled vet is if you are still in service, use the NFCU or the USAA. Disabled vets also have fees taken off VA loans. Another resource is Jake Broe/Navy on YouTube and a military resource that talks about finance, credit cards and the VA loan. Some lenders will use low Fico scores and spouses against you so they can make more interest on you. There is a lot of predatory lending out there and you have to be very careful and use due diligence. I am going through the VA process and with low inventory and marked up prices on homes...It's like an Mad Max movie! These owners want higher prices which is their option, but after the VA appraisal which comes in at neighborhood comps, it bursts their bubbles. Property I'm going for right now is gonna hurt the owners feelings when the appraisal comes in. Enough about me...With your scores and debt i would guess you'd get 150-200K you need to run the numbers if you are gonna pull the gun RIGHT NOW! Remember that if you run the numbers it will lower your score temporarily. Otherwise, build up your score by paying off what you can and gardening your credit. Remember, there's nothing wrong with a condo or starter home and even though I'm aprroved for more house, I'm staying on a budget and trying to live BELOW my means. Hard times are coming my friends and good luck to your family!!!


In today's market for resale a seller typically won't accept a VA offer because they're getting $30-$100k over asking (or appraised value)- they will either take a cash offer or a Conventional loan where they're putting more than 20% down to absorb the cost.  Poster will pay a higher rate as well as higher cost for the rate because of the scores- 90% of lenders won't even approve unless 620 or higher due to COVID.

 

Veteran here doing a new build as well as a mortgage loan officer.

" EX 718 EQ 730 TU 737 MMS 742"
Message 4 of 9
armywifelong03
Regular Contributor

Re: VA Questions

@MauiMan85209 I am stealing this thread to ask you a question, sorry!  We are doing VA, but are refinancing our construction loan for our new build. Our last appraisal was 8/24 and our post build was yesterday.  Are you noticing a trend in appraisals?  I worry for no reason, but wouldn like to hear someone on the outside!

 

Thank you!

Message 5 of 9
MauiMan85209
Established Contributor

Re: VA Questions

90% of all my appraisals are coming in higher, although you have a few that have come in $15-$30k lighter and getting an appraisal scheduled and completed are taking a little longer, especially in TX.

" EX 718 EQ 730 TU 737 MMS 742"
Message 6 of 9
armywifelong03
Regular Contributor

Re: VA Questions

@MauiMan85209 did you mean $415K lower? Or did I misread?  Lol. And, to clarify, lower than their pre build appraisal?  Or just lower in general.

 

Our paperwork was submitted  April 9th and our appraiser was at our house yesterday.  So, I guess we were a lucky one.

Message 7 of 9
MauiMan85209
Established Contributor

Re: VA Questions


@armywifelong03 wrote:

@MauiMan85209 did you mean $415K lower? Or did I misread?  Lol. And, to clarify, lower than their pre build appraisal?  Or just lower in general.

 

Our paperwork was submitted  April 9th and our appraiser was at our house yesterday.  So, I guess we were a lucky one.


Sorry- had to edit- $15-30k lighter (these are on resales), typically appraisals on new builds for VA come right in at purchase price, some do tend to come in higher like now in this red hot market.

" EX 718 EQ 730 TU 737 MMS 742"
Message 8 of 9
armywifelong03
Regular Contributor

Re: VA Questions

@MauiMan85209 Thank you so much!  I am anticipating ours coming back higher because we are on five acres.  Our land value has more than double in two years.  I would be happy if it at least stayed the same as pre-build. lol.

Message 9 of 9
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