When calculating a student loan payment on a VA loan there are various rules to pay attention to as far as what monthly payment is counted on that student loan debt.
If written evidence shows the student loan debt will be deferred at least 12 months beyond the closing date, no monthly payment is counted.
If a student loan is in repayment or scheduled to begin within 12 months from the date of a VA mortgage loan closing, the lender must consider the anticipated monthly payment in calculating the debt-to-income ratio. A payment is established by calculating each loan at a rate of 5% of the outstanding balance divided by 12 months.Continue reading Getting A VA Mortgage Approved With Student Loan Debt
With the popularity of electric cars and solar panels increasing, it’s important to point out that having solar panels on your house may impact your ability to get a mortgage. Many times, buying solar panels will be financed, and that is what they have an impact on your ability to purchase or refinance a mortgage. Continue reading Getting A Mortgage Loan With Solar Panels On Your House
A limited review condo approval means that when you get a mortgage to purchase a condominium you don’t have to go through the normal extensive document review to approve the condominium. You must have an approved condo to get a mortgage approved to buy a unit in the building. The approval review is more limited/abbreviated with a limited review condo approval. Continue reading Limited Review Condo Approval
I sometimes have people ask me what the requirements are to count alimony or child support income towards qualifying for a mortgage.
First we need a copy of a divorce decree or separation agreement (if the divorce is not final) that explains all the terms of any alimony and child support, and any other financial arrangements that may have a positive or negative impact on your mortgage application.
Some people don’t know that you can’t refinance your VA loan without waiting 210 days after your last loan. Some people do know this guideline. However, there are some specifics that people are not aware of.
One very important nuance is that you have to wait 210 days from the date that the first payment was due on the prior loan. The 210 day waiting period doesn’t start from the date of your prior closing date.
Below is an example:
A VA loan closed in January, and had a first payment due date of March 1st, a check is written March 8th, and that check clears March 12th.
Can they refi 210 days from January 1st, March 1st, March 8th, or March 12th, in order to meet the VA seasoning requirements?
The answer is they can refinance 210 days from March 1st, and they also have to have made 6 payments to close a new VA refinance.
Mortgage guidelines have the ability to change at any time, so always talk to a well-reviewed mortgage loan officer to make sure you understand the current guidelines and how they might apply to you.
Every year, the Federal Housing Finance Agency (FHFA) sets a dollar cap on conventional mortgages that Freddie Mac or Fannie Mae are allowed, commonly referred to as a conforming loan limit. In 2020, the conforming loan limit for a single-family home was $510,400. This year, the conforming loan limit for a single-family home increased to $548,250, nearly 7.6% higher!
This means Freddie Mac or Fannie Mae can purchase conventional loans valued at or under the conforming loan limit from mortgage lenders. In most areas, the maximum conforming loan limits are as follows: Continue reading 2021 Mortgage Loan Limits
When you qualify for a mortgage loan, it may not be for the amount you want. Outstanding debts can affect how much you are able to borrow. But in some instances, you may be able to pay off the debt in order to qualify for a larger loan.
In the U.S., nine states have tried to alleviate the pressure of divorce by passing community property laws.
In Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin, community property laws require divorcing couples to split assets acquired during a marriage equally. Marital property includes earnings, all property bought with those earnings, and all debts accrued during the marriage.
When getting a mortgage in a Community Property State, a spouse might not be on the new mortgage but their credit report will still be pulled and their debts will be added to the debt-to-income ratios of the mortgage borrower. However, this only applies to FHA & VA mortgages taken in the above states, not on Conventional loans. Continue reading Getting A Mortgage In Community Property States
Mortgage lenders are now required to confirm that you are still employed prior to closing on a mortgage, three business days prior in fact. Mortgage lenders are always required to verify that a borrower has not lost their job, been furloughed, laid off, or had their income altered prior to closing because it impacts their ability to repay the loan. Previously, lenders were able to document a borrower’s employment 10 calendar days prior to settlement. Continue reading What is a COVID VOE?