Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin are community property states. 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. Read More
Have student loan debt and getting a mortgage? When calculating a student loan payment on a VA loan there are various rules. These relate to what monthly payment is counted on that student loan debt.
What if documentation shows the student loan debt will be deferred at least 12 months beyond the closing date? Then no monthly payment is counted.
What if a student loan is in repayment or scheduled to begin within 12 months from the date of a VA mortgage loan closing? Then 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. Read More
Tidewater Notices on VA Loans? If you have never even heard of a Tidewater Notice you are probably wondering, what is a tidewater?! I know the first time I heard the term I was confused. My first thought was, “The property isn’t waterfront. What are they talking about tidewater for?
The Tidewater process by the Department of Veterans Affairs (VA) gives borrowers a way to try to combat a low appraisal valuation before it is even official. VA appraisers can notify the lender that it looks like the home’s value will come in below the purchase price. This is known as invoking the Tidewater Initiative, or Tidewater for short. Read More
A VA cash-out refinance can be used for many reasons. There are a few important things to know about cash-out refinancing to 100% loan-to-value (LTV) when using your VA eligibility.
On a VA cash-out refinance to a 100% LTV the 100% must include the VA funding fee. Read More
VA Funding Fees have been reduced starting April 7th 2023 up until November 14th 2031. The above chart is now the accurate set of numbers to use going forward. Read More
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.
The United States Department of Veterans Affairs requires that the closing costs on a VA refinance be recouped in 36 months or less. If the recoupment period is over 36 months the loan will be rejected.
In other words, the refinance closing costs divided by the monthly savings has to be 36 or less.
For example, if the closing costs on a VA refinance are $3,000. And the monthly savings on the refinance are $400 a month. The recoupment period is 7.5 months because $3,000 divided by $400 a month in savings = 7.5. This is well within 36 months. Read More
