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14 hours ago, Kenny Powers said:

What are the rules regarding VA loans and how you deconflict them when selling a home financed with a VA loan and purchasing a new home with a VA loan, like during a PCS? Does the 1st loan have to be paid in full before you have full entitlement for the 2nd loan?

Amy gave some good info.  I'd also add the VA to Conventional refi option.  If you want to keep the house but still need to free up your entitlement you can refi it into a conventional loan and do a one time restoration of your VA entitlement once you close on the refi.  You'd want to close on the refi before going under contract on the new house so you get the lowest rate (primary residence vs an investment property).  You'd have closing costs on the refi but some states don't tax refi's so closing costs can be reasonable.  If you're going to an expensive area (DC, Cali, etc) and think you'll need a jumbo loan (over $484,350) than freeing up your VA is the way to go.  VA jumbo's require little to no down payment and our jumbo rates are super low compared to other lenders.

If you don't need your full entitlement to buy the new place then I'd just calculate how much entitlement you have left and then bring the 25% difference of the purchase price - entitlement remaining.  This could vary well be the cheapest option.

I've attached a VA entitlement calculation example/worksheet.  The simplest way to figure out what is the best move is to just give me or Jon a call.  Happy to talk through any scenarios.  Better to start exploring options well before you need to execute.

Cheers!

Marty

marty@mythl.com

cell: 850-346-0250

guaranty_calculation_examples.pdf

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On 4/22/2019 at 7:31 PM, Marty - Trident Home Loans said:


Only heard great things about Josh in AZ! Recently referred another baseops guy to him and got great feedback. Great service and a great rate. I’d definitely shop the loan with him.

Marty

Josh Goldberg
Mortgage Planner
Direct: 480-459-4516
Cell: 480-510-6350
EFax: 480-718-7980
Main office: 480-459-4500
Josh.Goldberg@barrettfinancial.com


Sent from my iPhone using Tapatalk

Just wanted to post a follow up now that I've closed and signed with Josh. He went above and beyond for a first time home buyer and always had time to explain little details and answer any question.

True to your word, Marty, he quoted his best upfront and didn't play any games like the broker my real estate agent had me get a quote from.

He also seamlessly helped us push back closing a few days with no fees when we ran into a problem right at the deadline. In addition, he wouldn't let the title company finalize their portion until he ensured that I was getting every penny of concessions that the sellers agreed to (the title company was trying to leave $400 on the table). I wouldn't hesitate to fully recommend Josh for anyone looking at a house in Arizona.

I also had a great interaction with Amy at NBKC and wouldn't hesitate to use them in the future. It just came down to Josh beating their rate.

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9 minutes ago, aarp said:

True to your word, Marty, he quoted his best upfront and didn't play any games like the broker my real estate agent had me get a quote from.

Great to hear!  Thanks for the feedback!

Marty

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Potential BIG news on the VA front:  https://www.nar.realtor/washington-report/congress-passes-va-loan-bill

In short, it's expected the President will sign an act that will eliminate the cap on the VA home loan guarantee meaning you could qualify for a VA home loan with zero down at any price point.  Leads to a lot of speculation regarding how 2nd tier entitlements will work (using a VA loan for a subsequent home loan purchase while keeping the original loan financed with VA), and how much the VA funding fee may change as well...  

Standby for updates! 

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Shout out to Amy and NBKC for another seamless VA home loan. This is my third loan with her (two home loans and a refi, all VA) over ten years and the experience only gets better. All paperwork completed over the interwebs with the exception of the final documentation that required wet signatures/notary. From offer acceptance to closing was ~20 days. Rate was exceptional.

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16 hours ago, PilotWife2 said:

Potential BIG news on the VA front:  https://www.nar.realtor/washington-report/congress-passes-va-loan-bill

In short, it's expected the President will sign an act that will eliminate the cap on the VA home loan guarantee meaning you could qualify for a VA home loan with zero down at any price point.  Leads to a lot of speculation regarding how 2nd tier entitlements will work (using a VA loan for a subsequent home loan purchase while keeping the original loan financed with VA), and how much the VA funding fee may change as well...  

Standby for updates! 

Crazy

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We are waiting for official word from VA, but looks like the VA funding fee percentages will stay the same, but there will be NO limit for 100% financing.  Stay tuned....

 

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14 hours ago, daynightindicator said:

Shout out to Amy and NBKC for another seamless VA home loan. This is my third loan with her (two home loans and a refi, all VA) over ten years and the experience only gets better. All paperwork completed over the interwebs with the exception of the final documentation that required wet signatures/notary. From offer acceptance to closing was ~20 days. Rate was exceptional.

Thanks so much!  Always a pleasure working with you! 

 

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For a initial VA loan how do they determine your status, as in if you’re a reservist but on active duty orders, what funding fee rate will be charged? My broker has no clue so he just went with the 2.4% because I’m in the reserves. 

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1 hour ago, Heavywanabe said:

For a initial VA loan how do they determine your status, as in if you’re a reservist but on active duty orders, what funding fee rate will be charged? My broker has no clue so he just went with the 2.4% because I’m in the reserves. 

You have an eligibility letter. If its your first time its 2.15, and then subsequently they start charging. The VA puts out a chart.

 

https://www.valoans.com/purchase/closing-costs/

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31 minutes ago, Heavywanabe said:

For a initial VA loan how do they determine your status, as in if you’re a reservist but on active duty orders, what funding fee rate will be charged? My broker has no clue so he just went with the 2.4% because I’m in the reserves. 

The VA issues you a certificate of eligibility (COE) based on your service history used to qualify you.  When applying for a COE you list your component (AD, Reserves, or Guard) along with dates of service.  You then may need to provide supporting documentation (ie. statement of service letter from your CC or a proof of service letter from vMPF) if the VA doesn't already have the documentation in their automated system.  Your funding fee will then be based off the COE they issue.  There is an entitlement code on the top left of the COE which is typically 5, 10, 11.  11 is someone who earned it through the reserves and 10 is active duty.  If you're an activated reservist on title 10 orders (not for training) you can get qualified using the active duty funding fee if you meet the criteria. (2yrs or 90 days wartime/181 days peacetime)

The VA uses manual M26-1 Chap 7 to determine how you've earned your entitlement which goes into a lot more detail on the subject.  It's worth reading to save the money if you think you qualify.  Your lender can go into the VA system and submit a correction for you.

https://benefits.va.gov/WARMS/docs/admin26/m26_01/CertificateofEligibilityandEntitlementFINAL.docx

Might be a red flag if you have to teach your broker how to do a VA loan though.  There are a lot rules/processes on VA loans which might bit you later if your broker doesn't know what he/she is doing.  

Good luck!

Marty


 

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1 hour ago, Marty - Trident Home Loans said:

The VA issues you a certificate of eligibility (COE) based on your service history used to qualify you.  When applying for a COE you list your component (AD, Reserves, or Guard) along with dates of service.  You then may need to provide supporting documentation (ie. statement of service letter from your CC or a proof of service letter from vMPF) if the VA doesn't already have the documentation in their automated system.  Your funding fee will then be based off the COE they issue.  There is an entitlement code on the top left of the COE which is typically 5, 10, 11.  11 is someone who earned it through the reserves and 10 is active duty.  If you're an activated reservist on title 10 orders (not for training) you can get qualified using the active duty funding fee if you meet the criteria. (2yrs or 90 days wartime/181 days peacetime)

The VA uses manual M26-1 Chap 7 to determine how you've earned your entitlement which goes into a lot more detail on the subject.  It's worth reading to save the money if you think you qualify.  Your lender can go into the VA system and submit a correction for you.

https://benefits.va.gov/WARMS/docs/admin26/m26_01/CertificateofEligibilityandEntitlementFINAL.docx

Might be a red flag if you have to teach your broker how to do a VA loan though.  There are a lot rules/processes on VA loans which might bit you later if your broker doesn't know what he/she is doing.  

Good luck!

Marty


 

Thanks for the info. I’m title 10 (for training), so looks like I’ll have the 2.4. PM me if you guys know a good person to work with in Kansas. 

Thnks hw 

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18 hours ago, Heavywanabe said:

Thanks for the info. I’m title 10 (for training), so looks like I’ll have the 2.4. PM me if you guys know a good person to work with in Kansas. 

Thnks hw 

NBKC  Bank is located in Kansas City, and do a lot of business on the Kansas side.  Let me know if I can be of help!  

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