All Forum Posts by: Daniel Lehman

I do VA Home Loan 101 Courses every 2 weeks. Best way to register is at:

www.vahomeloanacademy.com/live...

100% Education, No Sales.  

See you there! 

Daniel

Anyone have a good commercial lender in St. Louis, MO?  Small deal - 325K for a fiveplex that cashflows really well.  

Thanks! 

I have an opportunity on a 40 acre lot zoned mobile home. I was hoping someone could help me understand how to best analyze the deal, what pitfalls to look out for, etc.

Any advice greatly appreciated. Thanks!

@Roberto Collazo man. Three kinds of loans. VA, Conventional and FHA. Generally speaking if you can go VA, you want to. Then conventional, then FHA.

VA is zero down.

FHA is 3.5% down.

FHA and VA have upfront fees but VA waives theirs with 10%+ service connected disability.

Rates are similar but FHA has a large monthly mortgage insurance premium that does not go away. VA has no mortgage insurance.

Apply for service connected disability if you warrant it, and use the VA loan for sure.

When I said seller I meant sellers agent.

@Freddie Bogard because sellers and their agents don’t understand them. Your lender needs to call the seller each time you make an offer and dispel their misconceptions. Appraisals are the same as conventional now (for the most part). Non-allowables at not an issue. They are not more complicated. Dispel the misconceptions and you’ll get your offer accepted. Sellers want to sell to veterans.

Probably smart, my friend.  Hopefully the market holds up for you also... 

Hey my friend.  

OK, so calculating remaining eligibility is complicated, but I'll try my best...  It's complicated because it CHANGES depending on the county that you are BUYING in.  So, bear with me.  It's probably better to think about in percentages, I guess?  

Let me try to explain.  

VA guarantees 25% of your loan. So, let's say you bought a home for 400K. The VA guarantee to the bank (that is tied up) would be 100K. (25% of the 400K).

That does not go down as you pay the loan down - it's just there on your certificate of eligibility.  

THEN what you do, is you have to figure out the county loan limit where you are BUYING.  Let's say that is in San Diego where we have a county loan limit of 753,250 in 2021.  

OK - I am going to break down the steps: 

a) FIRST you need to figure out what the MAXIMUM guarantee WOULD be in San Diego.  This is 25% of 753,250.  That amount is 188,312. 

b) Since that is the maximum, and you have 100K already charged, you have to subtract the amount charged from the maximum available.  188,312 minus 100K is 88,312 remaining guaranty. 

c) Last, since the guaranty is 25% of the max amount, you have to take 88,312 and DIVIDE it by 25% (or multiply it by 4 obviously) to get your NEW maximum with zero down - 353,250...  

d) You can still do a higher price point, but just like the old system, you would have to put 25% down on the overage to ensure a total of 25% guaranty overall.  

Make sense?  So you can see how that new maximum can change dependent on the loan limit where you are buying.  Also, if you are talking about the third property, it's the same system, but you'd subtract the total entitlement already charged.  Same math would be with two 200K purchases prior to this example.  Keep in mind - there is a minimum loan amount as well.   Don't get hung up on "secondary entitlement" - that doesn't necessarily mean second in number - it just means any entitlement remaining after whatever you've used up is used up...  It just means remaining entitlement if you have something outstanding.  2nd, 3rd, whatever.  Just combine those amounts and do the math accordingly.  If you are selling or refinancing one, just take that one out of your math.

Regarding the landlord experience - that's a lender overlay that some have. Plenty dont, and VA doesn't have that guideline - which is why you didn't find it in the VA guidelines...

Make sense? 

My understanding is that if you are selling to someone who intends to owner occupy, and you are in contract, you can sell and evict.  But Covid plus California is not a fun situation.  I'm deep in that mess - will let you know how it turns out, or message me and I can give you the play by play...  (In case you are into car crashes in slow motion...) 

I have a month to month lease. I am trying to sell an SFR. The tenants found out, refuse to leave, stopped paying rent and now have shut off the water to the landscaping so I am getting HOA violations. Trying to work it out, but selling this place and getting out of CA rental properties as soon as humanly possible. Good luck man.