Blog Category: VA mortgage

April 12th, 2022 water and beach
April 12th, 2022

Tidewater Notices on VA Loans

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?

Tidewater Notices on VA Loans

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

Categories: Appraisal, Underwriting Rules, VA Mortgage, , , , ,

March 29th, 2020 house and calculator
March 29th, 2020

VA $0 Down Payment Loans To Infinity?!

Prior to 2020, veterans could borrow more than the Veteran’s Administration (VA) Loan Limits capped amount, but had to have a down payment of 25% of the difference between the maximum loan limit and the sales price. As of January 1, 2020, the VA has started to allow $0 down loans that exceed the county loan limits.

So now, if a veteran wants to buy a home for $1,000,000 with no money down, they can. $2,000,000? Sure thing. $3,000,000? No problem! However, there are rules and guidelines that come with this new change. Read More

Categories: Home Buying Process, Loan Process, Loan Types, mortgage, Underwriting Rules, , ,

June 14th, 2022 money g53fe80fe4 1920
June 14th, 2022

VA Cash-Out Refinance To 100% Loan-To-Value

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

Categories: housing values, Loan Process, Refinance, Underwriting Rules, VA Mortgage, , ,

October 26th, 2020 calculator
October 26th, 2020

VA Refinance Recoupment Period

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

Categories: interest rates, Loan Process, Loan Types, mortgage, Refinance, VA Mortgage, , , ,