This BLOG On Mortgage Lenders In Chicago With No VA Lender Overlays Was UPDATED And PUBLISHED On March 18th, 2020
Veteran Home Buyers who are looking for Lenders In Chicago With No VA Lender Overlays came to the right place.
- VA Lender Overlays are Lender Overlays that is above and beyond the VA Guidelines imposed by private mortgage lenders
- Lenders do not have to approve a VA borrower with just the minimum VA minimum guidelines
- Lenders can have higher credit and income standards on VA home loans they originate and fund
- These additional guidelines are called VA Lender Overlays
- Most mortgage lenders will have lender overlays
- The smaller the mortgage banking company the more overlays the lender will have. Chicago and the Chicago suburbs have one of the biggest populations in the country and a substantial amount of Chicagoans are Veterans of the U.S. Military
- Gustan Cho Associates Mortgage Group are experts in originating and funding VA home loans in Chicago with no overlays
- Veteran home buyers who are looking and shopping for Lenders with no overlays on VA mortgages in Chicago have come to the right place
In this article, we will discuss and cover Mortgage Lenders In Chicago With No VA Lender Overlays.
More On VA Loans With No VA Lender Overlays And The Department Of Veteran Affairs
The United States Department of Veteran Affairs is in charge of VA Loans. The Veterans Administration or VA is not a mortgage lender.
This is the function of the U.S. Veterans Administration:
- The Veterans Administration is not a mortgage lender
- The function and role of VA when it comes to home loans is to insure and guaranty VA mortgages
- Private mortgage lenders are who originate and close on VA insured loans and not the Department of Veterans Affairs
- VA insures and guarantees VA home loans originated and funded by private lenders in the event the loans they have originated and funded defaults and goes into foreclosure and the lender loses money
- Mortgage lenders are more than eager and willing to finance VA mortgage loans due to the guarantee of the government
- Mortgage lenders are able to offer VA mortgages with no money down by Veterans at phenomenal lower mortgage interest rates than Conventional Loans due to the guarantee by the United States Department of Veteran Affairs
- VA home loans do not require mortgage insurance premium due to the guarantee of the Veterans Administration
- VA does mandate Residual Income Requirement
- The U.S. Department of Veteran Affairs has extremely lenient mortgage lending guidelines on VA Loans
- Most mortgage lenders have VA Lender Overlays
- Gustan Cho Associates has no lender overlays on VA Loans
- The only requirement is a borrower needs a 580 FICO
- There is no debt to income ratio requirement on VA mortgage loans
- Most lenders will have a debt to income ratio caps set at 41% to 50% DTI on VA Loans
However, this is not a VA Requirement BUT a Lender Requirement and part of their VA Lender Overlays.
What Are VA Mortgages?
VA Mortgages are the best mortgage loans that anyone can have. VA home loans are very easy to qualify for and have countless benefits.
- Unfortunately, not everyone can qualify for VA mortgages
- The United States Government only rewards them to Veterans of the United States Armed Services who served in the U.S. Military and has a valid Certificate of Eligibility
- A Certificate of Eligibility is also called a COE and this COE is the VA Loan Eligibility for Veterans with honorable discharges
The VA does not have a maximum loan limit on VA loans.
Key Points On VA Loans Versus VA Lender Overlays
Here Are The Mechanics Of VA Loans:
- Loans For Veterans are only for Veterans with an honorable discharge of the U.S. Military with a COE
- No down payment requirement
- U.S. Department of Veterans Affairs guarantees 100% Financing
- There is no down payment required from the home buyer
- No closing costs required by the Veteran as long as the Veteran home buyer can get a sellers concession and/or lender credit for closing costs
- This type of loans offers the lowest mortgage interest rates out of any mortgage loan program in the country for American veterans
- Mortgage Lenders feels safe on VA Loans because of the government guarantee
Low risk means low rates and the government guarantee on VA Loans means low risk.
How Do Veterans Qualify For VA Loans?
Home Buyers who are a Veteran of the United States Armed Services and know that they have an entitlement for a VA Home Loan, and loan officer from a bank or mortgage company can help qualify for a VA Loan. Veteran Borrowers who are shopping for a Lender With No VA Lender Overlay, please contact us at Gustan Cho Associates at 800-900-8569 or email us at gcho@gustancho.com with any questions on the following:
- High Debt To Income Ratio
- 580 Credit Scores
- Bad Credit
- Late Payments
- Outstanding Collection Accounts
- Outstanding Charge Off Accounts
- Bankruptcy
- Foreclosure
- Deed In Lieu Of Foreclosure
- Short Sale
- Deferred Student Loans
VA mortgages are one of the easiest mortgage programs you can qualify for. If you are a Veteran and are told that you do not qualify for a VA mortgage but qualify for an FHA Loan, it is because the lender you consulted with has VA Lender Overlays. Gustan Cho Associates has no VA Lender Overlays.
Gustan Cho NMLS 873293
- Email: gcho@gustancho.com
- Direct: 1-262-878-1965
- Cell: 800-900-8569 Please Text For Faster Response With Contact Information Including Email Address
