Basic Facts First: On a VA home loan, the Veteran’s spouse’s debt obligations have to be counted against him/her when qualifying even if the Spouse will not be a borrower on the VA loan (i.e. “non purchasing spouse”). Underwriters therefore add up all the monthly debts belonging exclusively to the spouse and count them against the Veteran (Borrower). And since…… Read More »
There are different rules that apply to the “seasoning” period since a foreclosure event, amongst different types of loans (CONV, FHA, USDA, VA). VA Loans offer the lowest such period of time required since the foreclosure . . .i.e just 2 yrs! FHA is presently at 3 yrs and so is USDA. Deeds in lieu of foreclosure (where the Veteran…… Read More »
Buyers Converting Their Principal Residence Into A Rental /Purchasing Another Home A homebuyer who is moving out of his/her present principal residence but plans to rent the home out and use the rental income (future) to qualify for their new house got a nasty shock in late 2008 when Fannie, Freddie and HUD changed the rules . . .those rules…… Read More »
Rashawn McNeal at Keller Williams called me today asking if her client (a Veteran) can use his VA Entitlement to purchase the home he’s under contract for. He was under the impression he couldn’t because he got a VA loan back in the 1970’s. Good news is: VA loans can be repeated time after time under certain conditions. Since this…… Read More »