All Forum Posts by: John Burke

Yes you can as long as your father will live in the home as his primary residence and you put enough down to cover your portion of the loan that VA will not guarantee.

Here are the VA guidelines for calculating the down payment.

VA calculates the guaranty as described in the table below.
Step Action
1 Divide the total loan amount by the number of borrowers.
2 Multiply the result by the number of veteran-borrowers who will be
using entitlement on the loan.
There is usually only one veteran borrower, in which case the result
of this Step is the same as the result of Step 1.
3 Calculate the maximum potential guaranty on the portion of the loan
arrived at in Step 2 (as if that portion was the total loan).
Use the maximum guaranty table in section 4 of chapter 3 of this
handbook.
4 VA will guarantee the lesser of:
• the maximum potential guaranty amount arrived at in Step 3, or
• the combined available entitlement of all veteran-borrowers.
5 VA makes a charge to the veteran-borrower’s available entitlement
in the amount of the guaranty.
If more than one veteran is involved, VA divides the entitlement
charge equally between them if possible. If only unequal entitlement
is available, unequal charges may be made with the written
agreement of the veterans.

Hey Troy,
No, since you'll be occupying the new home as your primary residence, you only need 5% down. Just a heads up, if you need to count the rental income from your departing residence to qualify, FHA will not be an option for your new home unless you move over 100 miles away.

Quote from @Ahsan Popal:

Ideal price point 450k give or take . 


Sacramento county , California 

Quote from @John Burke:

What's your price point for your new place? What state and county are you looking?

Google my name and va loan

Ok, Sacramento has loan limit of $766,550 so you're available entitlement is correct at $211,000. Here's the crazy thing, you could go up to 450K and you would only need $59,750 for a down payment. You could refi your current VA loan and switch it to conventional and restore your entitlement to buy a new home. This would offer you the lowest out of pocket cost. The other option would be to go conventional with 5% down. How far away from your current home are you looking to buy?

What's your price point for your new place? What state and county are you looking?

Google my name and va loan

Hi AP,

So you used all of your entitlement on your current VA loan? When did your purchase and what was the original loan amount? If VA doesn't work, I do have a DPA program that isn't income driven and you don't have to be a 1st home buyer.

I can lend in all 50 states. Take a look at my reviews on Z****w  

Quote from @Chandra Towns:

Looking for advice on my general financial picture and what I need to do to get it to a place to be able to qualify for home loans. 

 It sounds like you need to talk to a mortgage specialist.

Quote from @Eric Lind:

Quote from @John Burke:

It's important to look at which scoring model was used by Credit Karma. More than likely it was Fico 8. When you apply for a mortgage, each bureau (Equifax, Experian & TransUnion) uses a different model.

FICO® Score 2, or Experian/Fair Isaac Risk Model v2

FICO® Score 5, or Equifax Beacon 5

FICO® Score 4, or TransUnion FICO Risk Score 04

A no score response from the credit bureaus means you do not have enough open & active accounts to generate a score. This why the lender told you to get a Capital One Secured card.

For optimal scoring, you want to carry a balance on just credit card at 9% of the limit. For example: If your credit limit is $500, you want to carry a balance of $45.00.

With this $45 balance would you never pay it off? And would that lead to paying interest?

Depends on how long it takes to reach your desired credit score. Yes, it will lead to paying interest but you're talking about a pretty insignificant amount based on a $45 balance.
You need the balance to report over a period of time so the bureaus have something to score. Unfortunately, there's no real way to tell how long it will take. The lender could try running a what if simulator.

I would calculate your break even point. Take the difference between 10% and 20% and divide by the difference between the 2 payments. For example: Using $500,000 as the purchase price, the difference in your DP is $50,000. Ball parking the monthly PIPMI payment @10% down and the PI payment @ 20%, you're looking at a difference in your monthly payment of $551.84. Divide $50,000 by $551.84 and you get a break even point of 90.60 months or 7.55 years.

It's important to look at which scoring model was used by Credit Karma. More than likely it was Fico 8. When you apply for a mortgage, each bureau (Equifax, Experian & TransUnion) uses a different model.

FICO® Score 2, or Experian/Fair Isaac Risk Model v2

FICO® Score 5, or Equifax Beacon 5

FICO® Score 4, or TransUnion FICO Risk Score 04

A no score response from the credit bureaus means you do not have enough open & active accounts to generate a score. This why the lender told you to get a Capital One Secured card.

For optimal scoring, you want to carry a balance on just credit card at 9% of the limit. For example: If your credit limit is $500, you want to carry a balance of $45.00.