VA Loans For First Time Veteran Home Buyers With No Overlays
VA Loans For First Time Veteran Home Buyers With No Overlays
This BLOG On VA Loans For First Time Veteran Home Buyers With No Overlays Was Written By Gustan Cho NMLS 873293
The United States Department of Veteran Affairs (VA) has very lenient mortgage guidelines on VA Loans For First Time Veteran Home Buyers.
- Getting able to qualify for VA Loans for first time veteran home buyers is a privilege given to our fine men and women of our U.S. Military
- Only veterans with a valid Certificate of Eligibility (COE) are eligible to qualify for VA Loans
- VA Home Loans is hands down the best residential mortgage loan program in the United States
- A young soldier who has served this Great Country called America can get the most on VA Loans For First Time Home Buyers after proudly serving our country
- Purchasing the first home is an exciting time in everyone’s life
- A home purchase is the American Dream
- It is bragging rights that the homeowner has proven themselves and has succeeded in life
- Becoming a homeowner is setting a foundation of providing for one’s family a home
- Owning a home is where families develop memories
- Families are developed and lifelong friendships are made
- Provides stability for families for many years and decades to come
- Purchasing a home is most people’s biggest lifetime investment
- The mortgage process may seem intimidating for most home buyers
- There are so many horror stories out on how stressful the mortgage process is
The licensed and support personnel Team at Gustan Cho Associates Mortgage Group has no stress during the mortgage process. Mainly because at GCA Mortgage Group, we close on all of our pre-approvals. How?
- All of our pre-approvals are fully underwritten and signed off by our mortgage underwriters
- All of our pre-approvals at GCA Mortgage Group are full loan commitments to lend
- This is how we close 100% on all of our pre-approvals
- GCA Mortgage Group does not just close all of our loans, but close 100% of our mortgage loans on time. GCA Mortgage Group at Loan Cabin Inc. are direct lenders with no overlays on government and conventional loans
- Over 30% of our mortgages originated and closed are VA Loans For First Time Veteran Home Buyers
Qualifying For VA Loans For First Time Veteran Home Buyers
Once a first time veteran home buyer has set their mind and goals to become a homeowner, first step to take is consult with a loan officer to get qualified.
- One thing to remember is that not all VA Lenders have the same VA Mortgage Guidelines
- Most VA Lenders have overlays
- When qualifying for VA Loans For First Time Veteran Home Buyers, make sure to know the basic VA Guidelines
- Just because a lender says home buyer does not qualify for VA Home Loan does not mean that they do not meet VA Guidelines
- Buyer may not qualify with one VA Lender but may qualify with another lender with no lender overlays
- Over 75% of our borrowers are folks who either got denied by a lender or are stressing out during their VA Home Loan Process because of the lender they went with has lender overlays on VA Loans
What Are VA Lender Overlays
What are VA Lender Overlays?
- They are additional VA Guidelines that is above and behind those of Department Of Veteran Affairs
- For example, Gustan Cho Associates Mortgage Group does not have a minimum credit score requirement nor does it have a maximum debt to income ratio cap
- However, most VA lenders will require a 620 credit score and debt to income ratios not greater than 45%
- This requirement by the particular lender are not VA Guidelines but rather lender overlays
- One of our loan officers at Gustan Cho Associates Mortgage Group recently closed a VA Home Loan with a 589 credit score and 60% DTI borrower in Texas
- Most lenders would not have qualified this type of borrower
- However, this borrower got an approve/eligible per Automated Underwriting System so we were not just able to close him but close him on time with no stress during mortgage process
Veterans with bad credit and/or lower credit scores should consult with a VA lender with no overlays. Gustan Cho Associates Mortgage Group has zero overlays on VA Home Loans
How Much House Can I Afford?
There are two issues veterans who are buying a home need to carefully consider.
- How much house can I qualify?
- How much house can I afford?
Just because a home buyer qualifies for a $300,000 VA Loan does not mean they are able to afford $300,000 worth of housing payments. Mortgage Underwriters do not take into account all of a home buyers debts. There are debts that lenders do not know about but are crucial and necessary for borrowers.
Here are some debts that do not factor in when mortgage underwriters calculate how much house buyers qualify for:
- Utility Bills
- Medical Insurance
- Home Maintenance
- School Tuition
- Child and Elderly Care
- Personal Expenses
- Other expenses
VA Guidelines Versus Lender Overlays
Gustan Cho Associates Mortgage Group at Loan Cabin Inc. are one of a few national direct lenders with no overlays on VA Loans.
Here are basic VA Mortgage Guidelines versus typical VA Lender Overlays:
- 100% financing with no money down
- Buyers normally do not have to worry about closing costs
- VA allows 4% sellers concessions
- If short with sellers concessions, lender credit by lender to cover closing costs in lieu of slightly higher mortgage rates
- VA does not have any minimum credit score nor debt to income ratio requirements
- Most lenders have lender overlays on credit scores where they require 620 credit score
- Typical lender overlays are 45% debt to income ratios when VA does not have caps on DTI
- Charged off and collections do not have to be paid
- Even though VA does not require charged off and collections to be paid, many lenders required them to be paid off due to their own overlays
- Two year wait period after housing event to qualify for VA Home Loans
- Two year wait period after Chapter 7 discharged date
- Borrowers can qualify one year into a Chapter 13 Bankruptcy repayment plan
- No waiting period after Chapter 13 Bankruptcy to qualify for VA Home Loans
Home buyers who need to qualify for VA Loans with direct national lender with no overlays on government and conventional loans, please contact us at Gustan Cho Associates Mortgage Group at 262-716-8151 or text us for faster response.