VA Loans

I am trying to buy a home so that I can move from Knoxville to Tucson. From the video I saw the only thing that might be hinderance to my mortgage loan approval is that I have only technically had a place to live for six months of the last 24 months because 18 months before I was homeless living in hotels because the place that I rented and lived for 12 years after discharge from the Marine Corps got sold and I had to move.

I’m an active-duty U.S. Navy First Class Petty Officer currently stationed in Japan and preparing to return to Mississippi.

I’m looking to purchase my family’s first home using my VA home loan benefit. My wife, son, and I are looking in the $240,000–$250,000 price range.

I’ve been watching your videos about VA loans for borrowers with lower credit scores and manual underwriting. I used your DTI calculator, and my debt-to-income ratio is approximately 41.8%.

Over the past few months, I’ve been working hard to strengthen my mortgage file. I recently resolved two collection accounts, I’m continuing to save for the home-buying process, and we currently have approximately $12,500 in savings.

I do have some previously reported late payments on my credit history, but all of my accounts are current today, and I’ve submitted goodwill requests to two of my creditors because those late payments resulted from autopay issues that I corrected as soon as I became aware of them.

Before I spend money on applications, I’d like to know if my file is something your team would realistically consider for a VA loan, and if so, what documents you would need from me to begin the pre-approval process.

Thank you for your time, and I look forward to hearing from you.

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I am applying by myself using my VA loan. I have a 583 middle credit score, which is currently within the mortgage shopping window. Rocket Mortgage capped me at $120k due to an automated computer overlay, but I need an approval for $200k to get this house. I have 2 continuous years of W-2 income with $3200 monthly, $1663 monthly, tax-free VA disability income, and strong residual income to easily support a $1,500 monthly payment. I need a loan officer who specializes in VA Manual Underwriting to push past the automated caps. Can you help me?

My husband and I recently moved to Indiana from WA, we sold our home there which was a VA loan, however we had late payments on the mortgage due to some health things I went through last year. We know are trying to find a new option for living as currently living with a friend to get our self established in new jobs in a new state but we really need to find a 4 bedroom and the price or rent compared to buying is so crazy, I dont know that we can requalify for a VA loan with the late payments but he does get a 70% disability rating through the VA. What other options might we be able to explore. I know this month I got rid of a car loan that was my daughters on my credit and so we are trying to raise the credit scores to also help with the approval process. Also to note for the loan amount question above we found a property that is at 380,000 on market but there is also a few higher and lower that we would be willing to look at the amount changing if we could get some kind of approval to not have to rent. (Another lender told us our only option is to rent for a year) Email is best contact for me, thank you for your time.

All in all, can I get a VA Loan with Late Payments in Past 12 Months and if I cannot, what can I do to rebuild and re-establish credit to get approved for a VA loan or another type of alternative home loan. Thank you.

Can you please tell me how the VA COE works? If a borrower has a VA loan and needs a second one, how does that work? If a borrower has had bankruptcy and foreclosure, how much of a loan can they get on a second VA loan? If a borrower has a Jumbo VA loan and foreclosed on a home, how does that work? Can you please give me every single case scenario on how a VA loan and its entitlement work?

https://www.youtube.com/watch?v=bw2tnHGaM1U

I’m exploring possible solutions for a veteran client who’s interested in assuming a VA loan, and wondering if there are any creative financing options available to cover the remaining balance.

Scenario:

-The seller (also the landlord) is on board with the VA assumption.

-The sale price is $315K, but the current VA loan has a balance of $210K.

-That leaves a $105K gap the buyers would need to cover.

The Buyers:

-Veteran + fiancé (willing to marry before closing if needed to combine income).

-Mid-500s credit for the veteran

-Low 600s for the fiancé

-Veteran income: ~$33K W-2

-Fiancé income: ~$50K, not W-2 and hasn’t filed taxes yet (but has regular weekly deposits into a personal account)

-Monthly debts: ~$1,400

-Strong rent history: 9 years on-time

-Veteran missed payments in the past, possibly related to student loans, likely driving the lower credit score. Given their current income, the Veteran would likely qualify for $0 IDR payment. (This requires further investigation)

I know this particular case is a tough one, and it may not work given the buyers’ profiles, but it made me curious about what’s possible for this client or others in similar situations.

Are there any programs (VA or non-VA) that could help bridge that $105K difference? Maybe something like a supplemental second loan, DPA program, or even unsecured financing?

Would love to hear from anyone who’s dealt with similar VA assumption scenarios. Thanks!

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Need to qualify for VA Home Loan by disabled veteran?

Dear Gustan Cho Associates Team,

I am a veteran interested in obtaining a VA loan and would like to clarify a few aspects of my situation. I initially filed for Chapter 13 bankruptcy in March 2022, but after my separation from the Navy in May 2024, I converted to Chapter 7 in June 2024. Since the discharge, I have been working to rebuild my financial stability. My only current income comes from my 100% VA disability compensation and the BAH I receive from my GI Bill. I am actively searching for work but have not yet found a position that fits. Additionally, I am living in an apartment rented under my cousin’s name, with all utilities also in their name, so I don’t have any formal lease or utility bills in my name.

I’ve heard that your team specializes in helping clients with non-traditional cases, and I’m hoping you might be able to guide me through this process. Specifically, I have the following questions:

1. Do you have experience working with clients who have converted from Chapter 13 to Chapter 7 bankruptcy?
2. What is the earliest I might qualify for a VA loan given my conversion from Chapter 13 to Chapter 7?
3. What additional documentation will I need to provide to show my financial recovery and improve my chances?
4. How do you approach manual underwriting in cases like mine, and what factors are most important?
5. What kind of interest rates and loan terms could I expect based on my financial history?

Additionally, regarding my current living situation and income:

1. How does my current living arrangement, where I am not listed on the lease or utility accounts, impact the manual underwriting process for a VA loan?
2. Can I provide alternative documentation to verify my living situation, such as a rent-free letter or a notarized letter from my cousin who holds the lease? Would this be acceptable for meeting the requirements of rental verification?
3. Will the fact that my only income right now is from VA disability compensation and my BAH significantly affect my chances of qualifying for a VA loan? Are there compensating factors, such as savings or financial reserves, that could help offset this?

I appreciate any guidance you can provide and look forward to discussing how we can move forward with the loan process. Thank you for your time.

To clarify our previous discussion. Late PAYMENTS within the last 6 or 12 months isn’t a blanket guide in which we grant without valid reasoning behind the lates. In addition to other things that may paint a proper picture away from financial management, usually via the credit report.

example.

If the applicant clearly has been making effort to keep a clean nose for the prior year(s) leading up to the lates. But fell off the wagon in recent times with one or two lates (simultaneous or sequential). A proper LOX or even owning the mistake as they do happen, has a good chance of being sympathetic to this situation due to historical evidence that’s contrary to financial mismanagement.

If said applicant has a history of multiple lates leading up to recent lates that just so happen to lapse into 12-month guidelines. Highly likely, 12 months of clean credit history is going to be required. Financial mismanagement is established with past history which connects dots far too easily.

At any rate, we will certainly do all that’s possible and within reason to have a deal succeed. Otherwise, we have no business doing 500 fico manuals

@Gustan Cho NMLS 873293

This is for my son who is married to a gay man. They live in California together and been married 4 years in gay church. Antonio is a Navy Veteran and wants to buy a house with a VA LOAN. He told me that he needs a cosigner on his VA loan and wanted me to cosign for him. But the loan officer said VA loans does not allow cosigner except husband or wife. He told the loan officer that his husband will be cosigner. The Loan officer said gay people married people don’t count. Is this true?

I know HUD requires nonborrowing spouse’s debts to be counted on FHA home loans in community property states on FHA loans by mortgage lenders. Fannie Mae and Freddie Mac does not require NONBORROWING spouse’s debts to be counted on conventional loans on Conventional loans. What is the Veterans Administration (VA) requirements on NONBORROWING spouse’s debts on VA loans when a veteran applies for a VA LOAN? Does the NONBORROWING spouse’s debts count towards the debt to income ratio on VA loans in community property states.

Can anybody let me know where one can find the VA loans interest rate? Another thing, my score is significantly more than my husbands For Va loan can we use my score? Lender said she cant because I am new in the country and I am here just 1 year and 2 months/ But if my credit score is 768 why not. I think it discrimination because like if iam new and a foriegner. May be in my country I had good rating. They wanted me to be a co signer but then why dont use my credit score

I am a Disabled Veteran looking to make a home purchase in California, but unfortunately I have around a 50% DTI with a 675 credit score, and 100% payment history. This has been very problematic with getting a mortgage approved due to my DTI. I am under contract for the home I wish to purchase with 8/27/18 being the close date, and I would like use the VA loan to avoid a down payment. What are my options?

I am looking to use my VA Loan in California but I am having a hard time finding a lender with no or little overlays. My current credit score is 600 and my DTI is anywhere from 48-56% depending on the loan amount. I do not have any collections or late payments on my report. I have almost 3x the residual income required for a family of 3 in California. I wanted to see if you would be able to help me out. DONE

What are the guidelines on gift of equity on VA LOANS. What are the VA GUIDELINES on purchasing a home from a family member under market value.

How can I qualify for a VA loan as a veteran or service member?

Hello all,

Last year, I purchased my house with a VA loan, and even though I am happy with it, I have been hearing a lot about the benefits of refinancing. I’m wondering when I’m allowed to refinance my VA loan and if there are certain stipulations that would have to be observed. Also, since buying the house, my financial situation has shifted somewhat, so that makes me curious whether that would also alter some of the options I have. Thanks!

I am considering taking out a VA loan, but I need to know how to go about this. I understand that I have to meet certain requirements to qualify, but I’m not sure what they all are, especially when it comes to getting the VA Certificate of Eligibility (COE). Would someone be kind enough to explain it to me and take me through all the procedures for obtaining the COE?

How Are Student Loans Calculated On VA Loans?

Can I Qualify For VA Loan With 589 Credit Score?

IS IT TRUE VA LOANS DO NOT HAVE A CREDIT SCORE REQUIREMENT? WHAT ARE VA REQUIREMENTS ON CREDIT SCORES. THERE IS A LOT OF LENDER THAT HAVE DIFFERENT CREDIT SCORE REQUIREMENTS.

I’m a veteran interested in using a VA loan to buy my first home, but I’ve heard that the process can be complicated. What should I know about VA loans to get started, and how can I ensure I’m prepared?

What is the difference between FHA AMENDATORY CLAUSE and VA AMENDATORY CLAUSE?

• This discussion was modified 1 year, 12 months ago by  Sapna Sharma.

Can you explain what an VA OTC NEW CONSTRUCTION LOAN IS? How do I qualify and get approved for an VA One-Time-Close New Construction Loan? What are the eligibility requirements? How does it work? What is the steps of the mortgage process on the VA OTC NEW CONSTRUCTION LOAN?

How does VA HOME LOANS work?

A VA high-balance loan, also known as a VA jumbo loan, is a mortgage program offered by the U.S. Department of Veterans Affairs (VA) that allows eligible veterans, active-duty service members, and certain members of the National Guard and Reserves to purchase or refinance homes with loan amounts that exceed the standard conforming loan limits established by the Federal Housing Finance Agency (FHFA).

Conforming loan limits are the maximum loan amounts that government-sponsored entities like Fannie Mae and Freddie Mac will purchase or guarantee. These limits vary by location and are typically adjusted annually to account for changes in the housing market. In areas with higher housing costs, such as some parts of California, New York, and Hawaii, conforming loan limits may not be sufficient to finance homes in certain neighborhoods.

A VA high-balance loan comes into play when a borrower wants to purchase a home in a high-cost area and needs a larger loan amount than the standard conforming loan limits allow. The VA guarantees a portion of the loan, which allows lenders to offer favorable terms to veterans and active-duty military personnel.

Key features of VA high-balance loans include:

1. Higher Loan Limits: VA high-balance loans have higher loan limits than standard VA loans. The specific loan limits vary by location and are based on the FHFA’s conforming loan limits for that area.

2. No Down Payment: Just like standard VA loans, high-balance VA loans typically do not require a down payment, making homeownership more accessible to eligible veterans and service members.

3. Competitive Interest Rates: VA loans often come with competitive interest rates, making them an attractive option for borrowers.

4. No Private Mortgage Insurance (PMI): VA loans do not require private mortgage insurance, even for high-balance loans. This can result in lower monthly mortgage payments compared to some conventional loans.

5. Flexible Credit Requirements: While lenders have their own credit score and underwriting requirements, VA loans tend to be more flexible than many other loan programs, making it easier for some borrowers to qualify.

It’s important to note that eligibility for VA high-balance loans is subject to specific requirements, including military service history, discharge status, and other factors. Additionally, borrowers may need to meet income and credit requirements set by the lender.

If you’re interested in a VA high-balance loan, it’s advisable to contact a mortgage lender or broker with experience in VA loans to discuss your eligibility and explore the loan options available to you. Keep in mind that loan limits and program details may change over time, so it’s essential to get the most up-to-date information when considering a VA high-balance loan.

A two-to-four unit multi-family home is a type of residential property that typically contains two to four separate dwelling units within a single building. These units are designed to be occupied by different households, making it a form of multi-unit housing. Here are some key characteristics and considerations regarding two-to-four unit multi-family homes:

1. Unit Count: As the name suggests, these properties can have anywhere from two to four individual units, each with its own living space, kitchen, and bathroom facilities. They can vary in terms of layout, with options like duplexes, triplexes, or quadplexes.

2. Ownership: These properties are often owned by a single individual or entity, making them distinct from larger apartment buildings where multiple owners might have stakes in the property.

3. Rental Income: Many owners of two-to-four unit multi-family homes choose to rent out the individual units to tenants. This can provide a steady stream of rental income, which can be attractive for investors.

4. Owner-Occupied: Some owners choose to live in one of the units themselves while renting out the others. This arrangement can help them offset their own housing costs while generating rental income from the other units.

5. Financing: Financing options for two-to-four unit multi-family homes can differ from single-family homes. Some loans, such as FHA loans, are specifically designed for multi-family properties and can offer favorable terms for owner-occupiers.

6. Property Management: Depending on the owner’s preference and the location of the property, property management may be necessary to handle tasks like tenant screening, maintenance, and rent collection.

7. Local Regulations: Zoning and housing regulations can vary by location. It’s essential to understand local laws and regulations, such as those related to zoning, rental licensing, and building codes, when purchasing and managing multi-family properties.

8. Income Potential: The potential for rental income can make two-to-four unit multi-family homes an attractive investment option. However, the income potential will depend on factors such as location, market conditions, and the condition of the property.

9. Maintenance Costs: Owning and maintaining a multi-family property can be more complex and costly than a single-family home due to the additional units and shared spaces. Regular maintenance and upkeep are essential to keep the property in good condition.

10. Property Management: Depending on the number of units and your experience, you may choose to manage the property yourself or hire a property management company to handle day-to-day operations, tenant issues, and maintenance.

Investing in two-to-four unit multi-family homes can be a viable strategy for real estate investors looking to generate rental income and potentially build equity over time. However, it’s crucial to conduct thorough research, consider location-specific factors, and have a clear financial plan before making such an investment. Additionally, consulting with real estate professionals, including real estate agents, property managers, and financial advisors, can be beneficial in making informed decisions.

Veterans who are looking to purchase a home often wonder whether VA loans are worth it. If you have a down payment and enough income to qualify for virtually all of the available mortgage options, is a VA loan still the best choice?