Zillow Advice: Credit Scores - va loans how do they work i am a 100% disable veteran http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ Zillow Advice | Zillow Real Estate I agree that a VA loan is ... http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ I agree that a VA loan is a great loan program - probably the best loan out there if you have access to it. <br/><br/>Being disabled means you won't have to pay the VA Funding Fee, which is sometimes pretty expensive. Normally it isn't paid in cash - it gets added onto the loan. However, if you don't have to pay it, so much the better. Be sure to ask your loan officer about this. <br/><br/>I read some other replies mentioning lack of credit. I am not sure where that came from, but if you don't have an established&nbsp;credit profile there are still lenders out there who can do your loan.&nbsp;I woudl suggest working with a mortgage broker, since they have access to many different wholesale lenders.&nbsp;<br/><br/>If your&nbsp;disability benefiit/pension is tax free, your lender may be able to "gross it up."&nbsp;That means they get to pretend it is actually higher than it is. The reason for this is most people are taxed on their income, so their&nbsp;"take home pay" is lower. Your&nbsp;potentially lower tax-free income isn't reduced by taxes being deducted. <br/><br/>Of course, the important thing is to figure out who much YOU feel you can afford for a house payment, and let your loan officer know that figure. They can figure out the appropriate sales price of a house you should shopping for. <br/><br/>There's potentially one down side&nbsp;with a VA loan, at least in my area. People don't like to talk about it, but it is a factor. VA appraisers can be a little bit ornery. In my 20+ years of doing mortgages, the majority of appraisals that have come in lower than the sales price have been on VA transactions.&nbsp;It's possible that these houses have all been overpriced, but probably not on every one of these&nbsp;deals.&nbsp;Because of this perception in the market place that the VA apprasial may be troublesome, it is my belief that many sellers prefer to work with a buyer using other financing types. If you make an offer to purchase a home and someone else offers the same price but is using conventional financing, the seller may opt to go with the conventional financing buyer. At least that is how it seems in my market place (the Seattle area). I would be curious to know if it is that way in other areas of the country.<br/><br/>I am not saying this to discourage you. I believe the VA loan to be a great program. Just be aware of this - or at least ask your realtor what their thoughts are on this. <br/><br/>Best of luck!<br/>Ben Fri, 07 Mar 2014 19:05:00 GMT http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ 2014-03-07T19:05:00Z Great Question. &nbsp;Aside ... http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ Great Question. &nbsp;Aside from all the paperwork and usual 640 credit score in order to get "100% financed" just because one is a disabled veteran, I sense he is asking simply this is my only income...tax free. &nbsp;Mr. Smith is probably a bit frustrated due to the past monkey mortgage rep clicking button and getting that all wrong. &nbsp;<br/><br/>To them is looks as:<br/>1. Unemployed<br/>2. No credit history<br/>3. In error listing the 100% tax-free amount without the "gross up".<br/>4.....any more?<br/><br/>Please check out USAA or NAVY FCU. &nbsp;Be blessed. 4jonpk@gmail&nbsp; Fri, 07 Mar 2014 18:01:00 GMT http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ 2014-03-07T18:01:00Z Mr. Smith,All these answers ... http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ Mr. Smith,<br/>All these answers were great. As a veteran myself I purchased my first home using a VA loan. They are simply the best loan to have for you and your family. Go on line first and apply as the process is slow at times then when you get VA approvial then go to a lender and start the process of purchasing a new home. If you do not have a current Realtor, please feel free to call me, I would be glad to help. <br/>[phone removed by Zillow moderator] Thu, 26 May 2011 18:27:00 GMT http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ 2011-05-26T18:27:00Z Actually you should go find ... http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ Actually you should go find the loan prior to finding the property so that you know if the lender will approve your loan.&nbsp; This will help you know what kind of a property you can afford and how much you qualify for.&nbsp; This will narrow down your home search and also make it easier for your offer to be accepted by the seller. Thu, 26 May 2011 18:11:00 GMT http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ 2011-05-26T18:11:00Z VA loans are one of the best ... http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ VA loans are one of the best programs for a buyer.&nbsp; They are only offered to eterans and their spouses, in some cases.&nbsp; <br/>&nbsp;<br/>VA allows 100% financing.&nbsp; Meaning no downpayment for a qualified veteran.&nbsp;<br/>However, you still must qualify under credit and debt ratio limits.&nbsp; Currently, my middle&nbsp;credit score limit for a VA loan is 640.&nbsp; Generally speaking , your total debt ratio, including the new housing payment should be around 45%.&nbsp; This can go higher if you still have&nbsp;monies left over after all of your monthly expenes are paid.&nbsp;(monthly&nbsp;residual)&nbsp;<br/><br/>In some instances the VA will waive its usual funding fee, which can run up to 3% of the loan amount, if you qualify under your disability&nbsp;status.&nbsp; This is one of the things we check through the VA once you apply. <br/><br/>You would still have closing costs even though there isn't a downpayment requirement.&nbsp; VA is very generous on this as well.&nbsp; You can get your closing costs as a gift from a family member.&nbsp; Or, the seller can pay all or part of the closing costs.&nbsp; (Must be negitiated of course.)<br/> Thu, 26 May 2011 18:09:00 GMT http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ 2011-05-26T18:09:00Z The information Shane posted ... http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ The information Shane posted is great.&nbsp; The lender will provide you with a Pre-Approval letter stating how much you&nbsp;are approved to spend on a home and they will let you know how much your monthly payment will be, to make sure you are comfortable with the purchase amount.&nbsp; The next thing you need to do is get with a good real estate agent.&nbsp; They can show you homes and work with you to help you find a home that is perfect for you.&nbsp; Once you find a home a good Real Estate&nbsp;Agent will walk you through the entire process,&nbsp;which will include&nbsp;negotiating on your behalf, getting an agreement in writing with the buyer and seller, arranging the inspections for you,&nbsp;working closely with you and your lender to&nbsp;get through the lending process and getting you set up with a great title company that will also work on your behalf&nbsp;to make sure the home you buy has a clear title and to get the purchase completed.&nbsp; The VA loan is an&nbsp;awesome loan and a good dlender is a great starting place to get you on the road to Home Ownership!&nbsp; &nbsp; Thu, 26 May 2011 15:50:00 GMT http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ 2011-05-26T15:50:00Z http://www.benefits.va.gov/homeloans/veteran.asp ... http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ <p class="MsoNormal"><a href="http://www.benefits.va.gov/homeloans/veteran.asp" rel="nofollow">http://www.benefits.va.gov/homeloans/veteran.asp</a> has a ton of information for Veteran homebuyers to read.&nbsp; I'd strongly recommend you familiarize yourself with the VA basics and then venture out to speak with loan officers... as the VA has the "master" set of guidelines and each lender will have a slight variation of them as some lenders impose their own "overlay" guidelines on top of VA's.&nbsp; You'd want to find out what the VA guidelines are, and then compare that information to the information that various (you should to at least 3) loan officers tell you.</p><p class="MsoNormal">&nbsp;</p><p class="MsoNormal">More or less the process goes:</p><p class="MsoNormal">&nbsp;</p><p class="MsoNormal">1. Find the property suitable for your needs.</p><p class="MsoNormal">2. Go to a lender and apply for the loan.</p><p class="MsoNormal">3. Present your discharge or separation papers relating to latest period of service and/or a Certificate of Eligibility.</p><p class="MsoNormal">4. Property is appraised by approved appraiser.</p><p class="MsoNormal">5. Estimate of property's reasonable value is determined.</p><p class="MsoNormal">6. If application is approved, you get the loan.</p> Thu, 26 May 2011 15:14:00 GMT http://www.zillow.com/advice-thread/va-loans-how-do-they-work-i-am-a-100-disable-veteran/400594/ 2011-05-26T15:14:00Z