[VA Loan] VA Loan Requirements | VA [Home Loan] VA loan process (Home Loans) VA Loans (Mortgage)


Hey this is Chris the mortgage Pro. I’m
gonna introduce you to what is a VA loan, how does it work, and 20 things you must
know about a VA loan. Now any time throughout the video please like, share and
comment because I answer every question personally. And thank you for your
service. number one, if you have an honorable
discharge or a general discharge A general discharge basically is somebody,
sometimes the military for one reason or another just lets you go early you
didn’t do anything wrong but with a general discharge you can
also get a VA loan. If you have a less than honorable discharge
you would not be entitled. Number two. DD-214, I need your DD-214 and what I’m
gonna do is I’m gonna take that send it to the VA and I’m gonna get what’s
called your Certificate of Eligibility that’s gonna tell us how much you’re
entitled to for a VA loan. Number three people often think I can only have one
VA loan at a time. Well, that’s not true either. If the VA loan that you might
currently have is for a small amount you have an added eligibility you’re not
going to be able to buy too expensive homes with the VA but very often I see
people with two VA loans at the same time. Number four, maximum loan amount. Well,
first of all you can get a loan for a million dollars with a VA loan, how does
that work? aren’t there limits? Well, kind of what
happens is the VA is going to guarantee 25% of the loan. Now if the limit is $453,100 that’s what it is right here in
San Bernardino County California if you want a house a hundred $100,000 more, $553,100 you’d be required
to put as a downpayment 25% of that amount so 25% over a $100,000 you put a $25,000 now if
you want a million-dollar home you just put 25% of the amount over the
$453,100 now in every county in the
country the loan amounts are different the limits are different so you’d have
to check with you a county or you can reach out to me and I’d be happy to
figure out wherever you are in the country and tell you exactly what the
limit is. Number five down payment. Now I just mentioned in the last one if you go
over the limit you have to put 25% of the amount over
the limit for your County down otherwise it is a zero down payment loan. That’s a
big deal where else you gonna get a zero down payment loan with the lowest
interest rate. Number six a funding fee now how a VA loan works is there is a
funding fee the first time you use it it’s 2.15% of the
purchase price so as an example a $200,000 loan 2.15% is $43,000 if you use it for the first time
they’re gonna add $4,300 to the loan amount if you do it
the second time we’re looking at 3.3% so that would be
$6,600 added to your loan amount. Now there is one gotcha one
stipulation here one thing that’s really really great is if you are a disabled
vet what happens is that funding fee is a 100% waived doesn’t exist
you don’t pay it. Number seven, FICO score FICO stands for Fair Isaac’s Corporation
basically it’s your credit score now with a VA loan some lenders all have
different numbers I do as low as a 554 in order to help you get approved with
zero down now the higher the FICO score the more you save and fees and on
interest rate so we always want to take a look and see if we can raise your
score easily and quickly in order to save you that extra money however very
often with a 555 go score I could get people approved
number eight if we know what the FICO score is and we know what we have to do
we know what the approximate purchase price is we know what the approximate
payment is we’re gonna do what’s called a pre-approval now many people hear of
it it’s not a pre-qualification a pre-qualification says you told me the
information verbally over the phone and I’ve been doing this for so long I know
if you’ve been approved or not but that’s just a pre-qualification a
pre-approval requires me looking at all your documentation and I’m going to talk
about the documentation a minute or two but I’m gonna look at
all your documentation I’m gonna make sure your income is there I’m gonna make
sure your assets are there your FICO score is there your dd-214 all the
pieces the Certificate of Eligibility we’re gonna put all those pieces
together we’re gonna evaluate them now after all these years I could pretty
much do it standing on my head I know exactly what we need to do but I take it
to the next step what I’m actually gonna do is I’m gonna take those documents and
I’m gonna number one I’m gonna computerize them I’m gonna put them into
the system I’m gonna let the computer run your numbers and what’s gonna happen
is we hope to get an approval and basically it’ll come back saying approve
eligible that means you’re approved you’re eligible we do have to verify
every little dot every I and cross every T now once in a while it doesn’t come
back approve eligible it may say refer eligible and that’s usually when the
income is either a little tighter or the credit score is lower on the five fifty
five eighty and under range so it happens all the time and what we do that
point is we are allowed to do what’s called a manual on the right instead of
the computer underwriting we can send it to an underwriter who’s gonna evaluate
all the numbers crunch the numbers and say does this meet VA guidelines for a
VA loan and very very often we still get you approved number nine we have you
approved the next step is an agent real estate agent is gonna take you out and
show you properties maybe you’ve already seen a property maybe you haven’t maybe
you have an agent if you don’t I know all the top-notch aides in the area who
are gonna help you take it to the next level show you the houses show you what
you are interested in you’re gonna tell them you know I’m looking for this many
bedrooms this many bathrooms in this area this is what I’m the School
District I want I want to pull whatever it is their job is to find that house
and represent you number 10 we get an offer accept that means the real estate
agent who listed the house has presented your offer your price and your
firms to the seller and the seller has accepted the terms now we’re gonna do
what we call opening up escrow we’re ready to start the ball moving number
eleven disclosures we are going to disclose all the financial numbers to
you sometimes this takes a day or two because there’s a lot of numbers every
fee every everything has to be covered we have to figure out where is this
coming from how much is it gonna cost you maybe nothing
so we’re gonna talk about that later too number twelve the appraisal we’re not
allowed to order the appraisal until the disclosures that I just talked about are
signed once they’re signed we have to order the appraisal on a VA loan through
the VA portal and the VA is going to assign an appraiser they randomly will
pick an appraiser we’re not allowed to call them up hey Harry I want you to go
do John’s afraid it doesn’t work that way we have to do this randomly and
through the VA portal they’re gonna order the appraisal which takes usually
about a week or so they’re gonna go visit the property they’re gonna look at
every little instance every little thing they’re gonna take pictures of the house
make sure it’s safe they’re gonna look at all different things to make sure and
value they’re gonna show us what the value that they figure is they’re gonna
say okay here’s a comparable home three blocks away
here’s another comparable home a half a mile away that sold three months ago and
here’s one right down the block well this was the square footage here
this is the square footage on this house and they’re gonna compare they’re gonna
crunch all the numbers we don’t get involved in that but it’s gonna come
back and say this is the value of the house we do that to ensure a couple of
things one the lender wants to be sure that they’re lending you money for a
house that’s worth what they’re lending you number two we also want to protect
you because what if you offer $300,000 for a house but it’s only worth 275 that
wouldn’t make any sense for you so it’s there to protect you and there to
protect the lender number 13 income we need documental provable income if you
can’t prove it on paper it doesn’t exist if you started working
job last week a second job just because he did that doesn’t mean we can use the
income we can use one job and all the income or two jobs if he’d been working
that job for two years so a lot of people try and buy a house so they just
we started three months ago well that’s great that you save some extra money but
we can’t use that income now how do we determine income super important are you
paid how early are you paid salary salary is easy you could pay $5,000 a
month you $5,000 a month but if you get paid twenty dollars an hour okay how
many hours do you work a 40-hour workweek
or do you work a fifty hour work week well we’re gonna use the 40-hour work
week and the rest is going to be overtime how we use over time is we
average it over the last two years because if you started working overtime
six weeks ago we can’t use that also bonuses and Commission we have to
average those also see it can’t be brand new income with no history they need to
see a history to determine can you really afford this if you’re a disabled
vet and you receive disability income from the VA what happens is we can gross
that up 25% let me explain if you are let’s say a 50% disabled then you’re
getting roughly $1,000 a month we get to add 25% of that so it’s one thousand two
hundred and fifty dollars as your income why can we do that well you don’t pay
taxes on that money so that’s a big deal we evaluate your income taxes the family
not just yours if if your wife or a husband is going on the loan with you we
can use both incomes but only a husband and wife can go on the same va loan or
to veterans as an example you cannot have a fiance and and the veteran it
just doesn’t work that way they must be married or both of them would have to be
veterans true story I once went to a wedding where I did a loan for my
friends they wanted to buy this house but they weren’t married yet so what I
did was I told them you have to be married if you’re going to
this house cuz you need both incomes I went to their weddings six months later
and my wife and I were the only people there who knew they’ve been married for
six months number fourteen documentation super important you know but most people
it’s pretty straightforward if it’s a VA loan we always start the most important
documents to start with is we need your dd-214
we start there we’re gonna order your Certificate of Eligibility so you don’t
have to next we’re gonna look at your income we need one month’s pay stubs if
your spouse is also on the loan one month obviously for both if you have
jobs we also need two years of income taxes and two years of w-2s
very often when we run the approval it will not require income taxes but we do
ask for them upfront because in most cases it will we’re also going to ask
you for two months of bank statements every single page please don’t blacken
everything out they won’t accept that we need two months of bank statements we
need a social security card and a driver’s license now if you have a 401k
or you have some kind of other income or documentation for savings of some kind
whether it’s retirement savings or whatever it just makes you a case
stronger so give us that too if you’ve had a bankruptcy in the recent past
we’re gonna need bankruptcy documentation also so these things
change with everybody everybody like a fingerprint has a little bit of a
different situation so we stop there and then the underwriter is gonna ask for a
little bit more a little bit more to prove little things sometimes a little
can of worms opened up with a deposit that you made or something so they’re
always gonna ask for more get used to it that’s how it works
number fifteen termite report you know with an FHA loan conventional loans
other types of loans we very often do not need a termite report on a VA loan
it is mandatory every single time they are meant to protect you as the consumer
you as the veteran who’s buying this home they want to make sure you don’t
have a ton of termite damage or even a little termite damage that we don’t want
you to be responsible for now 4:16 it’s starting to get exciting now
you’re finding the house that you’re looking for we’ve gone through the
pre-approval process we ordered the appraisal we ordered the termite it goes
to the underwriter and the underwriter reviews all the documents and we get the
approval and that is one of the most exciting things we’re at the stage where
we have the approval now what happens is they’re always going to say I need this
other piece of documentation or that piece of documentation that is very
normal stuff but at least we know this is exactly what we need to get you in
your own home number 17 you meet those conditions the
conditions that the underwriter asked for he may say let me see the homeowners
insurance or I don’t like this or I don’t like that let me just prove that
you give us all those conditions hopefully you gave it to us very quickly
because the quicker you give us the documents the quicker we close your loan
number 18 closing disclosures these are the final numbers that is going to be
used for the closing it’s gonna say this is your interest rate this is what this
cost this is what that cost there’s a lot of different ways to do this but
these are the final numbers if you have to come in with any money and we’re
still going to talk about if you do or not this is how it works they’re gonna
give you the final numbers number 19 along the way there were a couple of
things that have happened one is you know that you had usually a zero down
payment loan with the VA however there are still closing costs now there are
three ways to pay closing costs one is we ask the seller to pay and sometimes
we do get them to pay and sometimes you ask them for $8,000 for closing costs
and they say we’re gonna pay 3,000 so it’s a negotiation back and forth
sometimes you pay you can pay the rest or sometimes I can raise the interest
rate up just a little bit and by doing that I get what’s called the lender
credit and we could apply that to closing costs now sometimes the seller
says I’ll pay three we raise the interest rate a little bit we get $3,000
in the lender it and you pay two thousand dollars out
of your pocket see could be any combination of those things but this is
how a VA loan works yes zero down payment but somebody’s still got to pay
those closing costs number twenty you sign the documents you sign the
documents you and whoever is on title your spouse or whoever it is you sign
the documents and then usually sometimes the same day if it’s done real early or
the next day we fund the loan that means the money has been wired to pay off your
the other loan to pay off the purchase and now the house is yours with one
small exception the county has to record it once they put their stamp of approval
it is recorded with the county you have successfully after 20 steps fired your
landlord

27 comments on “[VA Loan] VA Loan Requirements | VA [Home Loan] VA loan process (Home Loans) VA Loans (Mortgage)”

  1. Oluwaseye Akele says:

    This was very helpful.

  2. Fire Your Landlord says:

    If this video provides any value please like and subscribe to the page! I happily answer all questions and comments personally so please feel free to comment here or just give me a call and I'm always happy to help you, and…Thanks again for your service!
    310-350-2546

  3. Fire Your Landlord says:

    Hey, this is Chris the mortgage Pro. I'm gonna introduce you to what is a VA loan, how does it work, how to use your Veteran status and 20 things you must know about a VA loan. Thank you for your service. Please comment below if you have questions because I answer all questions personally.

  4. Inland Empire Homes says:

    Very informative…

  5. Susan Trapani says:

    wow that's a lot of info!

  6. Rosa R. says:

    Thank you Chris!

  7. Hannibal730 says:

    great video

  8. lilmama 44 says:

    Thanks for this, it is very informative 😊

  9. Justin Chermak says:

    I'm a Loan Officer outta NY and prior svc. I really enjoyed your vid, you know your sh*t.
    Best of luck and Semper Fi

  10. Jordan Thomas says:

    Less than honorable dischargees are more likely to stay dealing with landlords.

  11. Rich Castellano says:

    Great videos! My father is a 100% disabled Vietnam veteran. Can we buy a home together with his va loan?

  12. Shirri76 says:

    Very good video I am a underwriter and you r on point

  13. Fernando Calderon says:

    Thanks for the video but I have a question what is the probability of buying a multi-family home with a VA loan

  14. Angelica Goodale says:

    Can you help veterans in a different state than you? I'm in Ohio.

  15. osirow says:

    Do you have a representative in Texas or can everything be done remotely?

  16. T Perez says:

    Using a va loan, so you think it would be better to pull half the money down for a home and make extra payments toward the principal to buy the home off faster or do you think it’s better to just get a loan no money down and pay toward peincipal every month? I don’t want to be almost broke to put a down payment on the home but I want a low monthly payment and it paid off early.

  17. Joseph E. Greco says:

    Do you have a representative in Kentucky?

  18. S H A N C Y says:

    Where can I get a copy of my DD214?

  19. Tim FitzGerald says:

    This guy looks like a used car salesmen! Wouldn’t buy a thing from him!

  20. melissa aragon says:

    Me and my husband wants to get a house with the VA loan,he is a 100% disability vet. And the realtor told us that I must be in the loan! But my credit is really bad and I do not have a job, my husband works at the VA hospital and he is the one with the good credit,but the realtor told me that we didn’t qualify for the VA loan because of my bad credit. My question is if that’s true? Can my husband be on the loan by himself? Also they told me that I have to pay all of my collection debt in order to improve my credit and get the va loan approval.

  21. Kristoffer Cruz says:

    I have an ELS (Entry Level Separation) on my DD 214. I am also getting VA compensation benefits, I am not sure if ELS and general discharge are the same. Do you know if I can get a VA loan?
    * You gave so much information that saved me a lot of time. Great job!!!

  22. Carlos Pimentel says:

    Hi thank you for your information..can I buy as an invest investment property?

  23. onescaredcat 3D says:

    I didn’t need a certificate of eligibility. My awards letter was enough for the lending company. Get an awards letter, that’s all I would add to your amazing video. My awards letter has all the information from my dd214, monthly income, and disability rating.

  24. Rain Storm says:

    Hi Chris. My husband and I are planning to buy a house. He is a vet and I am not. My parents would give me some money for the down payment so that we just be paying less. My mother is living overseas and would wire transfer the money to my bank account, would that disqualify us for the loan? Thanks a lot.

  25. Paul Ross says:

    Can I use my VA Loan while in the military? (I believe so) and is it a simple process? I want to buy a house in my next duty station.

  26. Turning.Hoops says:

    What if you have been in school for the past 2 years and dont have taxes

  27. Jay Lawson says:

    Wow this is extremely informative. Thanks Chris.

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