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VA Loans

VA Reno vs 203k…..Which Renovation Program Is Best?

VA Reno vs 203k: Which Renovation Mortgage Program Is Best? Table of Contents Key Takeaways What Is a Renovation Mortgage? The VA Renovation Loan: Benefits and Limitations The FHA 203k Renovation Loan: Flexibility and Costs Comparing VA Renovation and FHA 203k Loans Which Renovation Loan Should You Choose? Important Tips for Using Renovation Loans Frequently Asked Questions (FAQ) Final Thoughts Key Takeaways Renovation mortgages combine the cost of purchasing a home with the cost of renovations into a single loan, expanding your options in today’s tight housing market. The VA Renovation Loan offers zero down payment and lower interest rates but is limited in lender availability and repair scope. The FHA 203k loan is more widely available and flexible, allowing structural repairs and mixed-use properties but comes with higher costs and mortgage insurance. Occupancy rules and repair timelines differ significantly between the two programs, impacting your renovation plans and living arrangements. Choosing the right renovation loan depends on your eligibility, renovation needs, property type, and financial situation. In today’s competitive real estate market, where inventory is tight and finding the perfect home can be a challenge, renovation mortgage programs can open doors to properties that need a little TLC. Combining the purchase price and renovation costs into a single loan, these programs allow buyers to expand their options beyond move-in-ready homes. Two of the most common renovation loans are the VA Renovation Loan and the FHA 203k Loan. Understanding the differences between these programs is essential to making an informed

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May 9, 2025 No Comments
VA Loans

The VA Energy Efficient Mortgage (EEM) : The Complete Guide

The VA Energy Efficient Mortgage (EEM) : The Complete Guide Table of Contents Key Takeaways What Is the VA Energy Efficient Mortgage (EEM)? Eligible Energy Efficient Improvements Loan Amount Limits and Justification Requirements Appraisal and Loan Amount Considerations Using the VA EEM: Purchases and Refinances How Repairs and Improvements Are Completed Challenges and Availability of the VA EEM Program Summary and Final Thoughts Frequently Asked Questions (FAQ) Key Takeaways The VA Energy Efficient Mortgage (EEM) is a specialized VA loan designed exclusively for financing energy-efficient home improvements. Eligible energy upgrades include solar panels, insulation, HVAC upgrades, storm doors and windows, water heaters, heat pumps, and more. The EEM program allows loan amounts to increase by up to $6,000 for energy improvements, with minimal documentation required for amounts under $3,000. Unlike traditional VA renovation loans, the cost of energy improvements does not need to be included in the appraised value of the home. The program can be used during home purchases or refinancing but cannot be used as a standalone loan for improvements. Energy improvements are typically completed after closing using an escrow account set up for the repairs. The VA EEM program has limited availability, with very few lenders offering this product. If you’re a veteran or active-duty service member looking to make your home more energy-efficient while leveraging your VA loan benefits, the VA Energy Efficient Mortgage (EEM) program is worth understanding. This unique loan product is tailored specifically for financing energy upgrades that can reduce your utility bills

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May 7, 2025 No Comments
Bad Credit

Bad Credit VA Loans…..All Your Questions Answered

Bad Credit VA Loan…All Your Questions Answered Frequently Asked Questions What is a minimum credit score to get a VA home loan? What are lender overlays? Can manual underwriting help with approval? What are extenuating circumstances? Some people say the VA loan doesn’t have any rules about credit issues. Is that true? Can I really get approved for a VA loan with a 500 credit score? My credit score is over a 580. Why does I declined? What does the minimum credit score get approved by the big mortgage lenders like Rocket Mortgage and Veterans United? Who’s the best lender for low credit scores? Are open collections okay? Are charge offs okay? Is bankruptcy okay? Is foreclosure okay? I paid my collections off. Why was I declined? What is payment shock? My ex went way late on the loan and messed up my credit. Will that count against me? Can I put a lot of money down and get approved for a VA loan? Can I get approved for a VA loan if I have a cosigner? Are VA loans easier to get approved than FHA? Are VA loans easier an easier approval than conventional? Can I get approved with no credit history?  Are defaulted student loans okay? Are delinquent taxes okay? Are judgments okay? What is a minimum credit score to get a VA home loan? The VA home loan has no minimum credit score requirement. This means that technically, you can qualify for a VA loan regardless of

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May 5, 2025 No Comments
VA Loans

Can A Second Job Income Be Used Toward Qualifying on VA?

Can A Second Job Be Used For VA Qualifying Income? Table of Contents Key Takeaways Understanding When Second Income Can Be Used for VA Loans Scenarios Where Second Income Can or Cannot Be Used What To Do If Your Second Income Cannot Be Used Why You Should Work With a Knowledgeable Mortgage Broker Summary and Final Thoughts Frequently Asked Questions Key Takeaways Second income for VA loans is generally only considered stable and reliable if it has been consistent and verifiable for at least two years. Exceptions exist, especially for borrowers with multiple part-time jobs totaling a full-time workload. Full-time plus part-time jobs require proof of workload management over time to be considered. Self-employment or side hustles must have a consistent income history and tax documentation to qualify. There are creative solutions and lender options, such as high DTI ratio lenders and NonQM loans, for borrowers whose second income doesn’t meet VA guidelines. Persistence and working with a knowledgeable mortgage broker can help you navigate complicated qualifying income situations. Understanding When Second Income Can Be Used for VA Loans When it comes to qualifying for a VA home loan, one of the most common questions I get asked is, “Can a second job or additional income source be used for qualifying income?” The answer is nuanced, and it depends largely on the VA handbook guidelines, borrower history, and the specifics of the income sources. In the VA handbook, particularly in chapter four, the rules around second income are clearly outlined.

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May 5, 2025 No Comments
Home Buying

A Backdoor Way To Get A Lower Mortgage Rate

A Backdoor Way To Get A Lower Mortgage Rate Table of Contents Key Takeaways What Is a Temporary Rate Buydown? Is a Temporary Rate Buydown a Good Idea? Who Should Consider a Temporary Rate Buydown? Additional Considerations FAQ: Temporary Rate Buydowns Final Thoughts Key Takeaways Temporary rate buydowns offer a legal way to reduce your mortgage interest rate temporarily, easing early payments. There are two main types: seller-paid and lender-paid buy downs, each with different funding mechanisms and implications. Qualification for the mortgage is based on the higher, fully amortized interest rate, not the temporary buydown rate. Temporary buydowns are best suited for borrowers expecting income increases within the buy down period. Understanding the pros and cons, including payment increases after the buydown expires, is crucial before deciding. When mortgage rates rise, many homebuyers understandably want to find ways to lower their payments. The frustration is real, especially after years of historically low rates hovering around 2% to 3%. If you’re wondering if there’s a “backdoor” method to secure a lower mortgage rate, you’re not alone. Fortunately, there is a legitimate strategy called a temporary rate buydown that can help ease your monthly payments for a limited time. What Is a Temporary Rate Buydown? A temporary rate buydown is exactly what it sounds like: a way to buy down your mortgage interest rate for a set period, usually the first year or two of your loan. Think of it like the teaser interest rates you might have seen offered on

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May 4, 2025 No Comments
Bad Credit

How To Get A VA Home Loan With Bad Credit

How To Get A VA Home Loan With Bad Credit Key Takeaways Guideline Key Takeaway Minimum Credit Score No official VA minimum, although many lenders will set their own minimum standards VA Flexibility VA allows manual underwriting for lower scores with compensating factors Recent Payment History Last 12 months of on-time payments crucial for approval Alternative Credit Rent, utilities, and insurance payments can be used if traditional credit is limited DTI Ratio Higher DTI ratios may be accepted with strong compensating factors Compensating Factors Substantial savings, stable employment, or disability income can offset credit issues Post-Bankruptcy/Foreclosure Possible to qualify after 2 years or 1 year with extenuating circumstances. This is shorter than other loan types Credit Improvement Some lenders offer credit counseling to help veterans boost scores Interest Rates Lower credit scores may result in slightly higher interest rates Lender Variation Requirements and flexibility vary by lender; shop around for best options Table of Contents https://www.youtube.com/shorts/a3DvVfFvsZc Did you know that over 25% of Americans have bad credit? Sadly, many of these Americans are veterans and are being needlessly being turned away for VA home financing. If this is you, you’re in luck because I’m going to show how it is possible to get approved for a VA home loan with poor credit. The VA loan is extremely flexible, and VA guidelines state that they want as many veterans as possible to get approved. But, there are a few things you need to keep in mind. The VA does not write

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May 3, 2025 No Comments
VA Loans

Can GI Bill Benefits Be Used Toward A VA Home Loan?

Can GI Bill Benefits Be Used Toward A VA Home Loan? Table of Contents Key Takeaways Introduction Why You Should Be Careful About Online Information Can GI Bill Income Be Used to Qualify for a VA Home Loan? What Can You Do With GI Bill Benefits When Buying a Home? Why It Matters to Work With a Knowledgeable Loan Officer Additional Tips for Veterans Using VA Home Loans Frequently Asked Questions (FAQ) Conclusion Key Takeaways Income from GI Bill benefits cannot be used to qualify for a VA home loan as it is considered temporary income. GI Bill funds can be counted as assets to help cover closing costs when purchasing a home. Beware of incorrect or misleading information online regarding VA loans and GI Bill usage. Always consult a licensed loan officer with expertise in VA loans before making decisions. Introduction If you’re a veteran or an active service member exploring home loan options, you’ve likely heard about the benefits of the VA home loan program and the GI Bill. But a common question I get asked frequently is: “Can income from the GI Bill be used toward qualifying for a VA home loan?” As someone deeply knowledgeable about VA home loans, I want to clarify this topic and separate fact from fiction. There’s a lot of misinformation floating around online, and it’s critical to get the right facts to make informed decisions. In this article, I’ll break down the relationship between GI Bill benefits and VA home loans,

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May 2, 2025 No Comments
Home Buying

Why Getting A Home Inspector Is Critical For Your Home Purchase

Why Getting A Home Inspector Is Critical To Your Home Purchase Key Takeaways A home inspector is not required for mortgage approval but is highly recommended for protecting your investment and health. Home inspections can reveal hidden issues such as radon gas or worn-out HVAC systems that may not be obvious during initial viewings or appraisals. Getting a home inspection early in the buying process allows for renegotiations or contract cancellations if major problems are discovered. Costs for home inspections typically range from $500 to $1,000 and are paid by the buyer. Finding a reputable, licensed home inspector can be done through referrals from your realtor, loan officer, friends, or online reviews. Table of Contents Key Takeaways Is a Home Inspector Required for Mortgage Approval? What Does a Home Inspector Do? Home Inspector vs. Appraiser: Understanding the Difference How Much Does a Home Inspection Cost? Real-Life Stories: The Importance of Home Inspections Negotiating Repairs Based on Inspection Findings How to Find a Good Home Inspector Conclusion Buying a home is one of the most significant financial decisions you will make, and protecting that investment requires careful consideration. While many homebuyers focus on mortgage approvals and appraisals, one crucial step often overlooked is hiring a professional home inspector. In this article, I will explain why getting a home inspector is critical to your home purchase, share real-life stories illustrating the importance of inspections, and provide practical advice on how to find a reliable inspector. Is a Home Inspector Required for Mortgage

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May 1, 2025 No Comments
Home Buying

Are You Trusting Experts For Your VA Mortgage Advice?

Are You Trusting Experts With Your VA Mortgage Advice? Key Takeaways Not all mortgage advice online is accurate, especially regarding VA home loans. Verify if the advice provider is a licensed loan officer by checking their NMLS number. Look for references to official VA guidelines or handbooks to ensure advice is current and credible. Understand the difference between VA rules and lender overlays, especially concerning loan limits and credit scores. Certifications and experience matter when choosing who to trust for VA mortgage guidance. Introduction If you’re considering a VA home loan or currently navigating the mortgage process, you might be overwhelmed by the amount of information available online. As someone deeply involved in VA home loans, I’ve seen firsthand how misinformation can lead to confusion and missed opportunities. Understanding who to trust when it comes to VA mortgage advice is critical. In this article, I’ll share insights on how to distinguish expert advice from common misconceptions and why it matters for your homebuying journey. Why Mortgage Advice Online Can Be Misleading The internet is flooded with content about VA home loans, but not all of it is accurate. One major reason is how search engines like Google rank and display results. Often, the top results come from individuals or websites skilled in Search Engine Optimization (SEO), but these people are not necessarily licensed loan officers or mortgage experts. SEO is a completely different skill from lending, and while I happen to be proficient at both, I am the exception rather

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May 1, 2025 No Comments
Home Buying

Can You Buy A High End Property With A VA Loan

Can You Buy A High End Property With A VA Loan? Key Takeaways Yes, you can buy a high-end property using a VA loan with no money down if you have full entitlement. The VA jumbo loan program allows loans above the conventional Fannie Mae loan limits without requiring a down payment under certain conditions. The Blue Water Navy Act of 2019 reformed VA loan entitlement rules, enabling veterans to access jumbo loans without down payments if they have no other VA loans outstanding. Partial entitlement, such as owning another rental property with a VA loan, may require a down payment based on a complex formula. Lenders may impose additional overlays, including down payment requirements or credit limits, even if the VA allows jumbo loans. Always consult a licensed and experienced loan officer to understand your specific VA loan entitlement and options. Welcome! If you’re wondering whether you can purchase a high-end or luxury property using a VA loan, you’re in the right place. I’m Carlos Scarpero, and today I’ll clear up the confusion about VA jumbo loans, entitlement rules, and what you really need to know to buy a more expensive home without a down payment. There’s a lot of misinformation floating around the internet — so let’s set the record straight. Understanding VA Jumbo Loans and the Fannie Mae Limit One of the most common questions I get is: Can you buy a high-end property with a VA loan? The simple answer is yes. You can even do

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April 28, 2025 No Comments
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