Blog Category: VA loans

water and beach

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. Before finalizing the appraisal report, 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

VA loan US flag

Getting A VA Mortgage Approved With Student Loan Debt

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. Read More

divorced couple

Getting A Mortgage In Community Property States

What is a community property state?

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. Read More

veteran administration mortgage

Important VA Mortgage Guidelines

A VA loan is a mortgage loan guaranteed by the Veterans Administration. There are numerous mortgage guidelines for a VA mortgage. I wanted to list some of the more important ones below, but you always need to speak to an experienced mortgage loan officer and have them discuss your specific circumstances as there are many other things to consider in addition to the below. Read More

Fees Can Drop?

For VA loans closed on or after October 1, 2011, the VA Funding Fee (which is the VA equivalent of mortgage insurance) is dropping. This change is due to passage of Public Law 112-26, Restoring GI Bill Fairness Act of 2011. It is surprising to see fees actually drop! Read More