Mortgage Insights With Gary | VA & Home Loan Answers

If you're a listing agent and a VA offer lands on your desk, your seller is going to ask you one question: "Is this a good offer, or is the VA loan going to cause problems?" I hear some version of that question from agents a lot. And I understand where it comes from. VA loans have a reputation for tougher appraisals, extra paperwork and rules nobody explained to the seller. Some of that reputation is earned. A lot of it is old information. I'm Gary Bourgeois. I served 23 years in the Army and now work as a mortgage advisor, and VA financing is a big part of what I do. I've also worked on the real estate side of a purchase, so I know the listing agent is usually the one stuck explaining the loan to a seller who has never seen one. Here's what I'd want you to know before you advise your seller. 1. The VA Appraisal Checks Value and Condition Every VA purchase gets an appraisal from a VA-assigned appraiser. That appraiser is answering two questions: what is th...

Yes. And this is one of the most misunderstood parts of the VA home loan benefit. I talk to veterans who assume a VA loan is primarily for buying a starter home or a moderately priced house. That simply isn’t the case. If you’re an eligible veteran with full VA loan entitlement, there is  no VA-imposed maximum loan amount  just because you’re using VA financing. That means a qualified veteran could potentially use a VA loan to purchase a $750,000, $900,000, $1 million or higher-priced home in Texas. The question isn’t simply: “Is the house too expensive for a VA loan?” The better questions are: “Do I qualify for the loan, do I have full VA entitlement, and does the property support the purchase price?” Those are very different questions. VA Loans Aren’t Just for Lower-Priced Homes I served 23 years in the Army, and one thing I’ve learned since moving into the mortgage business is that a lot of veterans don’t fully understand the benefit they’ve earned. One misconception I hear...

  If you're retired from the military, or you're getting ready to retire, one of the questions you may have is: Can I use my military retirement income to qualify for a VA home loan? In many cases, yes. Military retirement income can be an important part of qualifying for a VA loan. And depending on your situation, it may be combined with civilian employment, VA disability compensation, a spouse's qualifying income, or other eligible income sources. I'm a retired Army veteran myself, so I understand that transitioning out of the military doesn't always fit neatly into the same box as a traditional civilian borrower. Here's what veterans should know. Does Military Retirement Pay Count as Income for a VA Loan? Military retirement income can generally be considered when qualifying for a VA loan when it can be properly verified and meets applicable underwriting requirements. The VA's own Lender's Handbook specifically addresses veterans who are recently disc...

If you’re looking at homes above $500,000 in North Texas, the first question I’d ask is what you want the house to cost you every month. Then we can figure out how VA financing fits the purchase. 1. Check your VA entitlement early If you have full entitlement, the VA doesn’t set a loan limit. The lender still has to approve the loan amount, and the appraisal needs to support the financing. If you’re still using some of your entitlement on another home, let’s check what’s available before you assume how much you’ll need to put down. 2. Compare the full payment on the actual property Give me an address if you have one. I want to look at principal and interest alongside estimated property taxes, homeowners insurance, and any HOA dues. Two homes at the same price can come with different monthly costs. If you’re comparing VA and conventional financing, let’s look at both using the same property and the amount of cash you’re comfortable putting into the purchase. 3. Decide how much...

If you’re retiring from the military and buying a home around the same time, start with three dates. When does your active-duty pay end? When do you expect your retirement pay or civilian job to start? And when would you like to close? I spent 23 years in the Army National Guard. One thing I’d tell anyone making that transition is to have the mortgage conversation early, especially if you’re trying to move before you start your next job. What to bring to your first mortgage conversation Your timeline. Bring your retirement or separation date, your target move date, and any orders you already have. Your current and expected pay. Bring a recent Leave and Earnings Statement and any retirement pay documentation you have. If you’ve accepted a civilian job, bring the written offer with the start date, pay, and any conditions. Your current housing plans. If you own a home, tell me whether you plan to sell it, keep it, or rent it out. Let me know if you have a VA loan on it...