VA Buyer with Non Occupying Co-Buyer

I’m excited to share valuable insights about VA loans and some unique options available when traditional qualification might be a challenge. Whether you’re a Veteran exploring your options or a real estate agent guiding clients, this information can make a difference in the homebuying process.

VA Loans with a Significant Other (Not Married) and 12.5% Down

For Veterans who don’t qualify for a VA loan on their own and want to include a significant other they aren’t married to, a joint VA loan is a viable path. This requires a 12.5% down payment to cover their portion, as the VA only guarantees the Veteran’s share. The Veteran must qualify for at least half of the new Principal, Interest, Taxes, Insurance, and Association (PITI) payment independently, ensuring they can manage the loan if needed. Lenders will evaluate both parties’ credit and income, so open communication and preparation are key for a smooth process. OK, most of us have dealt with this type of buyer in the past, and with the low rates, this is usually better than FHA or Conventional if a buyer has the down payment!

Non-Occupying Relative (Mom or Dad) as a Co-Signer

Veterans can also turn to a non-occupying relative, such as a parent, to co-sign and boost their qualification. This creates a “joint” loan requiring a manual underwrite by the VA, which can take longer but is achievable with the proper steps. The entitlement calculation shifts, so we’ll need details like a Certificate of Eligibility (COE) to assess the Veteran’s available entitlement. The Veteran must still qualify for at least half of the PITI, and with a manual underwrite, the debt-to-income ratio cannot go over 41%. After we underwrite the file, it must again be underwritten by VA until all Prior to Doc conditions are cleared, which could delay the file by up to 10 business days. This option offers support but requires patience and thorough documentation.

Additional VA Loan Opportunities with Limited Eligibility

A significant benefit for Veterans is the ability to obtain another VA loan even if they already have one, thanks to the VA’s entitlement system. Each Veteran starts with a basic entitlement, which can support a loan up to no limit. However, there may be more entitlement after the first loan. For example, if a Veteran used a portion of their entitlement on their first home, the remaining entitlement can still secure another loan, often requiring a down payment based on the unused portion. We’ll review a Veterans Certificate of Occupancy and current loan details to calculate this precisely, opening doors to additional property investments.

VA Funding Fee Refund for Future Disability

For Veterans without a current disability rating, the VA funding fee - required at closing - can be refunded if a service-connected disability is awarded later. After receiving disability compensation, Veterans can request a refund by submitting documentation, such as the disability award letter, to the VA. This provision offers long-term financial relief and is worth considering when planning your purchase.

Challenges with Dishonorable Discharge

Veterans with a dishonorable discharge face significant hurdles with VA loan eligibility. The VA restricts financing to those with honorable or certain medical discharges, as a dishonorable discharge indicates a break in service that disqualifies the individual from VA benefits. This policy ensures benefits are reserved for those who served honorably, though it can be a barrier for affected Veterans. If this applies, alternative loan options, such as FHA or conventional loans, may be explored, often with higher down payments or interest rates.

Feel free to reach out to discuss how we can support your Veteran clients. We’re excited to work with you!

Please let me know if you have any questions or if a client needs my guidance. I’m just a call, text, or email away.

📞 Cell: 661-714-6258

📞 Direct Line: 661-291-2222

📞 Office: 661-260-2970 ext. 2222

📧 Email: Mike@AugustaFinancial.com

But wait, there’s more…

Interest Rates

Let’s say that rates are worse today than they were last week, and with today’s CPI number, we will be hard-pressed for a rate cut in the coming months.

Loan Programs

• We do loans on Non-warrantable condos!
• We offer 12-day escrows for pre-approved buyers - Conventional/FHA/Jumbo/Bridge loans.
• We provide loans in all 50 states, so call me with anything you need.
• Government loans (FHA/VA/USDA) are in the high 5’s and low 6’s.
• Conventional loans up to $806,500 are in the low to mid 6s.
• High Balance Loans from $806,501 to $1,209,750 are also in the 6’s and 7’s.
• Jumbo loans above $1,209,750 are in the 6’s and 7’s.
• Bank statement loans are available with 10% down again, with larger down payments in the 6’s ++.
• Profit and Loss Statement loans require 20% down - no bank statements needed, only a profit and loss statement!
• 0 down loans are available in the high 6s, with a minimum credit score of 620, up to $1,300,000.
• Private Money lenders offer Hard Money Loans with 35% down.
• No Ratio Loans require 30% down.
• DSCR (Debt Service Coverage Ratio) loans are available with as little as 15% down.
• Bridge Loans typically have an interest rate of 7.99% with limited fees, helping you get where you need to go!
• 3/2/1 Buydowns, 2/1 Buydowns, and 1/0 Buydowns are available at great starting rates!

Please note that interest rates are subject to change without notice, and the information above reflects LA County Loan Limits.

**Good News for Condos:**   NOPE

**Bad News for Condos***

American Beauty Village East – Off the naughty list!  On the naughty list! Who the hell knows! The HOA is stating that approximately 20% are now delinquent on HOA dues. We are working on one of these now, and I can’t fix stupid! I wiill update you, but agents, be aware!

The full state of California’s naughty list has been added to: MikeMeena.com! See the link below:

https://mikemeena.com/non-warrantable-condos/

Let me know if you hear anything new about condos or townhouses.

I am available every day if you need anything.

📞 Cell: 661-714-6258

TEXT: 661-714-6258

📞 Office: 661-260-2970 ext. 2222

📞 Direct Line: 661-291-2222

📧 Email: Mike@AugustaFinancial.com

Have a great day and an even better tomorrow! Please call me when you have a client who needs to borrow!