NLIC.org

Clara Said:

How can I find lenders that are authorized by VA to do automatic processing? Is there a directory?

We Answered:

http://www.ezratequotes.com/LoanApplicat…

http://www.alamode.com/DirectoryGenerato…

http://www.mortgageloan.com/Mortgage/Vir…

http://www.mortgage-lenders-plus.com/mor…

http://www.business.com/directory/real_e…

Elsie Said:

Where to get a VA Home loan mortgage for low income but good credit, cautch 22, MINNESOTA?

We Answered:

It really depends on your wifes credit score. With FHA if she has over a 580, normally that's not an issue. If it's over 560, it is more difficult but can be done especially since your credit score is good. 530-560 we can still do but this is a very difficult loan to get through and we have to have some compensating factors.

We work in Minnesota so if you need additional help, feel free to email me. We are a mortgage banker so our guidelines (or many mortgage bankers guidelines) are more flexible than a regular bank.

Katie Said:

whats the best va mortgage lender? I want a good interest rate around or under average. anyone w/ experience?

We Answered:

VA mortgages have higher interest rates than conventional loans. There is also the matter of the funding fee which is a percentage of the loan. You can pay this in cash or tack it onto your mortgage. You don't need a down payment, that's a good thing. I think the funding fee is 3% and goes up with each mortgage after the first one. We bought our first house for around 119K and the funding fee was around 4K. Our second house, I think the fee was more like 5% or something. Also with a VA loan you don't have to pay PMI insurance which can be hundreds per month tacked onto your payment.

Positives of a VA loan: no PMI and don't have to come up with a down payment

Negatives of a VA loan: big funding fee and higher interest rates

I guess it depends on your personal situation and how long you will be in the house. If you don't pay a down payment and add a big funding fee to your loan, you end up upside down right off the bat, especially in this market. But the market will turn around in time but will you move before it does? If so, you may still be upside down on your mortgage and lose even more money when you sell your house.

One other thing that happened to us with the VA loans was the red tape and paperwork slowed things up a bit. They require so many things. For instance, we had to send off digital pictures the day before we closed to show that we had splash blocks on the down spouts. If we didn't send the pictures, we wouldn't have closed. The VA also has their own house appraisers that you must use to have the loan approved. There are only certain appraisers that are VA appraisers and usually there is only one guy who does all the VA appraisals in a large area. So the wait can be long and they are usually a**holes because they know they are the only one and you need them and they don't have to be nice.

This has just been our experience. We are now in our third home. We went conventional this time and have the best interest rate ever, 5.5% on a 30 year fixed. Our first house was 7% and the second was 6%. Third times a charm!

Warren Said:

VA mortgage DTI squeeze?

We Answered:

When calculating your DTI for your home purchase your mortgage payment will be used not your current rent payment. The assumption is automatically made that you will no longer have an obligation to pay the rent once you have closed on your home.

When you are calculating your DTI be sure to include the full Principle, Interest, Taxes and Insurance (PITI) for your mortgage payment. Also all of your installment debt is in your DTI, car payments, student loans, credit cards etc. Other monthly payments such as gyms, club or association fees etc are not usually counted since they are discretionary.

The DTI limits can change often and quickly (as they have recently) so be sure to stay in touch with your mortgage lender. as for the higher limit, it depends on the investor involved with the loan you are applying for and yes exceptions are possible but not as likely in todays current tight credit market.