In this blog, we will cover and discuss qualifying for VA loans by Wisconsin VA mortgage lenders with no lender overlays. Gustan Cho Associates, empowered by NEXA Mortgage, LLC NMLS 1660690 has a large presence in Wisconsin. Gustan Cho Associates empowered by NEXA Mortgage, LLC is licensed in 48 states, including Wisconsin, and is based in Oakbrook Terrance, Illinois NMLS 1660690. Wisconsin is a great state with a strong economy, beautiful landscape, amazing lakes, and hundreds of historic tourist places. Many families migrate to Wisconsin due to the strong economy, strong demand for jobs, low taxes, affordable housing, and low cost of living. Wisconsin is one of nine community property states. Many people from Illinois go to Wisconsin on the weekends to fish, waterski, hunt, and enjoy the hundreds of lakes.
Many Americans have second homes in Wisconsin. A large number of borrowers at Gustan Cho Associates are homebuyers of second homes in Wisconsin. Wisconsin has four seasons and plenty of snow in the winter season. However, many tourists call Wisconsin their favorite place to vacation for 12 months of the year. There are activities during every season in the state. During the cold winter months, people can snowmobile, hunt, ice fish, cross country skiing, and enjoy the hundreds of ski hills throughout the state. A large number of Illinoisans and retirees from other high-taxed states migrate to Wisconsin to retire. They can get a lot of house for their money, absolutely beautiful landscapes, lower property taxes, hundreds of places to vacation, affordable housing, acreage, and a low cost of living.
Veteran Families in Wisconsin
Wisconsin has a large number of veterans who call this great state home. Fort McCoy is one of the largest military bases in the nation and is based in Fort McCoy, Wisconsin. Gustan Cho Associates are experts in helping active duty and retired members of the United States Armed Forces qualify for VA loans. Many retired members of the U.S Military join local, county, or state police agencies in Wisconsin. These public service workers include police officers, county sheriff’s deputies, Wisconsin State Patrol troopers, county and state corrections officers, firefighters, EMTs, doctors, nurses, pharmacists, and other silent heroes who serve our communities in the state of Wisconsin.
Homes For Heroes in Wisconsin
Gustan Cho Associates has the Homes for Heroeswhich are for law enforcement, first responders, medical field personnel, and public safety workers, and. The Homes for Law Enforcement Officers mortgage loan program can save each applicant anywhere between $2,000 to $7,000 on a home purchase. The Homes for Law Enforcement and Public Safety Officersare for local, county, and state police officers, police and fire dispatchers, firefighters, EMTs, FBI/DEA/ATF/HUD, law enforcement, and public safety instructors, and other federal law enforcement agents. Unlike many other mortgage lenders, Gustan Cho Associates has wholesale mortgage lending relationships with VA lenders with no lender overlays. Lender overlays are additional mortgage guidelines that are above and beyond the minimum agency guidelines of the Veterans Administration. In the next paragraph, we will discuss what lender overlays on VA loans are so our viewers have a full understanding.
Wisconsin VA Mortgage Lenders Licensed to Originate VA Loans
All mortgage lenders who originate VA loans need to be licensed and/or registered. Private mortgage lenders need to be licensed through the NMLS in the states they want to originate mortgage loans. Mortgage loan originators who work for Federally Chartered Financial Institutions such as FDIC banks, credit unions, and other financial institutions under the supervision of the federal government and/or Office of the Comptroller are exempt from licensing but need to be registered with the NMLS. The financial institution is responsible for vetting individuals who are registered. All financial institutions originating VA loans in Wisconsin need to be approved by the Veterans Administration.
What Are Agency Mortgage Guidelines by the Veterans Administration
Wisconsin VA mortgage lenders, whether state-licensed or federally registered, need to make sure every borrower meets the minimum agency guidelines of the Veterans Administration. The Department of Veterans Affairs is the government agency that insures and guarantees Wisconsin VA mortgage lenders in the event borrowers default on their VA loans. The Veterans Administration is not a lender. The VA does not originate, process, underwriter, or fund VA loans. The role of the Veterans Administration is to insure lenders in the event borrowers default and/or foreclose on their VA loans.
What Is The Role of the United States Department of Veterans Administration
The responsibility of the Veterans Administration is to partially insure Wisconsin VA mortgage lenders who have originated loans for borrowers who meet the VA guidelines and have defaulted and/or foreclosed on their VA loans. In order for the Veterans Administration to guarantee Wisconsin VA mortgage lenders on defaulted VA loans, Wisconsin VA mortgage lenders need to meet the minimum VA agency mortgage guidelines. If Wisconsin VA mortgage lenders do not have borrowers meet every aspect of the minimum VA agency guidelines, the loan is not insureable. Not every Wisconsin VA mortgage lenders have the same guidelines and lending requirements on VA loans. We will explain why in the next paragraph.
Lender Overlays Imposed By Wisconsin VA Mortgage Lenders
In the previous paragraph, we discuss how all Wisconsin VA mortgage lenders have to have their borrowers meet the minimum agency mortgage guidelines. Many borrowers have been turned down by Wisconsin VA mortgage lenders for one reason or another. Many borrowers get conflicting reports from various Wisconsin VA mortgage lenders and often get confused. The fact of the matter is every Wisconsin VA mortgage lenders can have different lending requirements on VA loans.
Example of Credit Score Lender Overlays
One lender may require a 620 credit score while other Wisconsin VA mortgage lenders may require a 640 credit score. Yet other Wisconsin VA mortgage lenders like Gustan Cho Associates have no minimum credit score requirements and can get borrowers with credit scores down to 500 approved for VA loans. All Wisconsin VA mortgage lenders need to have their borrowers meet the minimum agency guidelines of the Veterans Administration. However, Wisconsin VA mortgage lenders can have higher lending requirements above and beyond the minimum agency guidelines of the Veterans Administration.
Wisconsin VA Mortgage Lenders With VA Overlays on VA Loans
The higher lending standards required by Wisconsin VA mortgage lenders that are above and beyond the Veterans Administration are called VA lender overlays. There are no minimum credit score requirements on VA loans. Many Wisconsin VA mortgage lenders have lender overlays on credit scores. Most Wisconsin VA mortgage lenders will set a minimum credit score requirement on VA loans such as 620, 640, and 660. Over 75% of our borrowers at Gustan Cho Associates are folks who could not qualify at other mortgage companies due to lender overlays. As long as the borrower meets the minimum credit score requirements on VA loans, you can rest assured that Gustan Cho Associates will approve you and not just close the loan but close it on time.
Types of Lenders Overlays Imposed By Wisconsin VA Mortgage Lenders
Wisconsin VA mortgage lenders can have lender overlays on anything they feel is too much risk for them. Here are typical lender overlays by Wisconsin VA mortgage lenders on VA loans:
Lenders can require a specific minimum credit score when the VA does not mandate a minimum credit score
Overlays on debt to income ratios when VA loans do not have a maximum debt to income ratio cap
Wisconsin VA mortgage lenders can require they will not approve borrowers in an active Chapter 13 Bankruptcy repayment plan when VA allows borrowers to qualify for a VA loan during Chapter 13 with trustee approval via manual underwrite and the Chapter 13 does not need to be discharged
Lenders can require one year to two-year waiting period after the Chapter 13 Bankruptcy discharge date when the Veterans Administration does not have a waiting period after the Chapter 13 discharge date with a manual underwriting
Many Wisconsin VA mortgage lenders can require borrowers to pay outstanding collections and/or charged-off accounts when the VA does not require unpaid collections and charged-off accounts to qualify for a VA loan
Some Wisconsin VA mortgage lenders will not allow manual underwriting on VA loans
Many Wisconsin VA mortgage lenders will not allow manufactured homes, one-time close VA construction loans, and other niches VA mortgage loan programs
Not too many Wisconsin VA mortgage lenders will approve VA loans with credit scores down to 500 FICO
Wisconsin VA Mortgage Lenders Who Are Experts in VA Loans For Bad Credit and Borrowers with Credit/Income Issues
Again, over 75% of our borrowers at Gustan Cho Associates are homebuyers who could not qualify at other lenders. A large percentage of our borrowers are folks who could not qualify for a VA loan at other Wisconsin VA mortgage lenders. When you get issued a pre-approval from Gustan Cho Associates, you will not just close, but will close on time. If you need to qualify for a VA loan in Wisconsin, please contact us at gcho@gustancho.com or call us at 800-900-8569. Text us for a faster response. The team at Gustan Cho Associates does not believe in banker hours. We are available 7 days a week, in the evenings, on weekends, and on holidays.
Gustan Cho NMLS 873293 is the National Managing Director of NEXA Mortgage, LLC dba as Gustan Cho Associates NMLS 1657322. Gustan Cho and his team of loan officers are licensed in multiple states. Over 75% of the borrowers of Gustan Cho Associates (Gustan Cho Associates) are folks who could not qualify at other lenders due their lender overlays on government and conventional loans. Many mortgage borrowers and real estate professionals do not realize a mortgage company like Gustan Cho Associates exists. We have a national reputation of being a one-stop mortgage company due to not just being a mortgage company with no lender overlays but also offering dozens of non-QM and alternative financing loan programs. Any non-QM mortgage loan program available in the market will be offered by the team at Gustan Cho Associates. Our team of support and licensed personnel is available 7 days a week, evenings, weekends, and holidays.
