All Forum Posts by: Samantha Reeves

@Josef T. you are correct in that you can use the VA loan after you get out of service. I think what @Eric Schenck was referring to is the transitional period when you have less than 12 months left before ETS. In those circumstances if you don't plan to reenlist a lender is going to want to see evidence of income following your service, which can sometimes be difficult to provide if you don't have a formal job offer or if you plan on becoming self-employed. 

Regarding the comment on the VA funding fee - For active duty service members the funding fee for your first loan is 2.15%. It goes up to 3.3% for subsequent uses. I wanted to clarify that it doesn't keep going up every time, it would be 3.3% on all subsequent uses. Now, you can reduce your funding fee by putting money down but it's not required. Also, those with service connected disability have the funding fee waived.

Correct, you can't roll repair costs into the loan. They types of scenarios where a seller may be more willing to do repairs really depends on a host of factors. It just really depends on their portfolio and how they manage their holdings. I'm not an expert on that side of the transaction, I can just tell you to talk with the seller/bank and see what is possible for each property you are interested in and see if repairs are something they'd consider to get the house sold.

Hi Michael,

On a purchase you can't take out additional funds to pay for the repairs, but you can pay them out of pocket. With a foreclosure you'd have to determine if this is something the bank would even allow. Like you mentioned, it may be possible to create an escrow holdback - it's something you'd want to talk about in detail with your lender, but those funds would have to come out of your pocket (or the sellers), and couldn't be rolled into the loan. 

The key to these types of transactions is talking through all the possibilities with your lender and the seller/bank prior to going under contract. While surprises can and do happen, having clear discussions on property conditions and possible issues prior to contract can save you a bunch of headache. 

Hi Jordan,

VA buyers can't roll their closing costs into the loan, so it would be an out of pocket expense for the buyer. Not sure of the buyer's financial situation, but they may have been preapproved for the higher amount, but that doesn't mean they have cash on hand to cover the difference between the appraised value an the initial purchase price or the closing costs. I'd suggest talking with their agent to get a feel for what's possible regarding negotiations.

Hi Michael,

The property will have to meet all of the VA's minimum property requirements, if you want a complete list, they are outlined in Chapter 12 of the VA lender's handbook: http://www.benefits.va.gov/warms/pam26_7.asp

Also keep in mind the appraiser has discretion to call out repairs outside of the MPRs if they feel there is an issue that keeps the home from being safe, sanitary and sound. 

What I'd look for is whether the bank/seller will consider any repairs whatsoever. Whether they are ones you negotiate for them to pay or ones you pay for out of your pocket. It can vary from bank to bank and property to property, but you may be able to find one that allows for repairs. In most cases the repairs will have to be complete prior to closing, but there are some circumstances where the lender will permit an escrow holdback to allow the repairs to be completed after closing. For example this occurs with things like needing to paint the exterior but the temps are too low. 

Working with a lender who does a lot of VA loans will also be useful in this situation as they can help guide you based on their past experiences with foreclosures in the area and appraiser's.

 I wrote a post on the BP blog Friday that talks about multiple uses. Here's a link: https://www.biggerpockets.com/renewsblog/2016/01/2...

Hope that helps answer your questions.

 Hi Victor,

If you are wanting a fixer upper, a VA loan may be tricky. Each property has the meet a number of minimum property requirements, basically ensuring the home is move in ready. So if you are just wanting to make some updates, it may work, but if the home needs significant work, it won't likely pass the VA appraisal process and the repairs would have to be done prior to closing (in most cases). Additionally, lenders may have requirements that you intend to live in the home for at least 12 months.

Hi Dan,

I thought I'd chime in since you specifically asked about Veterans United Home Loans.

I actually work at Veterans United doing real estate agent education. We've got some really knowledgeable loan officers and we really pride ourselves on customer service. We've got a 96% customer satisfaction rating. We'd love the opportunity to earn your business. 

And if you ever have VA loan questions, feel free to reach out to me and I'll do my best to answer them.

Samantha

It will depend on the condition - the appraiser will use their discretion to determine if either of those are a safety or structural issue. Do you think you can ask for the seller to repair those items as part of the negotiation process?

"The basic entitlement available to each eligible Veteran is $36,000. Lenders will generally loan up to 4 times a Veteran's available entitlement without a down payment, provided the Veteran is income and credit qualified and the property appraises for the asking price."

The 4 is in reference to a calculation of the VA guarantee, not the number of homes a lender will lend on.

There isn't a maximum number of homes you can purchase using your VA loan, it will all depend on a multitude of factors including, but not limited to:

- your remaining entitlement (1st and 2nd tier) Here's a good post explaining the calculations in detail: https://www.veteransunited.com/valoans/second-tier...

- where the homes are located

- your intent to occupy the new home as your primary residence

- other circumstances like a PCS, upgrade in the same area, etc

Veterans United Home Loans specializes in VA loans is an amazing company (of which I work for, educating real estate agents about VA loans).