Benefit from VA Home Loans
Texas Military Benefit from VA Home Loans Finding Lower Rates with Security America Mortgage VA Mortgage Experts
The lucky day for Veterans has arrived, especially for those who choose to finance a mortgage in Texas, especially when these high-end VA loan amounts are already guaranteed and insured by the Department of Veteran Affairs. Security America Mortgage, Inc. now make the difference for Veterans and Military personnel purchasing homes in Texas by providing low rates on VA Home Loans and finance options up to $1,000,000.
So what is the big hesitation to buying a home if all the arrows point to "DO IT"? The truth is, the economy may still frighten potential homeowners away from trying to purchase a home, but Real Estate Market experts like Ryan Ward, a Real Estate Broker from Security American Realty, Inc. in Texas, says that "now is actually the best time to purchase a home due to the lower mortgage payments being offered. There is a rumor that trends that buying now is a sure way to expect profit in the long run, as the economy will only get better going forward. It is only those members who take the first step of financing their VA home loan entitlement who will get to see the advantages of purchasing Real Estate now played out in the long run. Seeing if you qualify can be obtained with ease, but taking the first step is one of the reasons many people miss their opportunity. Luckily, for Veterans who are eligible, fear is not an option - it's a challenge worth taking.
Since taking the first step of the VA Home Loan Process is the main reason so many Veterans halt in the beginning of finding a home, Security America Mortgage's VA home loan experts mapped out the initial steps toward receiving the VA benefits Veterans so rightly deserve, along with a simplified plan to make it happen fast. The main reason VA home loans are so great to obtain in sunny Texas is because the VA Loan Limits have a maximum amount that allows lenders to finance with VA backed money that is much higher than regular VA home loan limitations of the Home Loans. In Texas, the VA Loan Limit can be anywhere from $417,000 all the way up to $1,000,000 in some counties located in Texas.
There are only seven (7) steps in the VA Loan Process in Texas. This is another huge reason why veteran home buyers turn to the VA Home Loan Process and why it is so popular compared to financing a home using an FHA Home Loan.
-Step 1. Home Buyer Locates the Real Estate Property of their Dreams.
-Step 2. Home Buyer Applies with a Lender's Application Form, Beginning the VA Home Loan Process.
-Step 3. Home Buyer Requests the Required VA Forms to the VA Loan Experts for Review:
-DD214 VA Request Form
(Discharge/Separation Papers Showing the Last Period of Service).
-Certificate of Eligibility Request Form (COE)
(Document Showing Entitlement Info according to the VA).
-Step 4. Property is Inspected and Appraised by an Approved VA Inspector/Appraiser.
-Step 5. Calculations of VA Home Loan & Estimates of the Property's Reasonable Appraised Value is Determined by the Lender - VA Home Loan Forms and Application are sent to the VA for review.
-Step 6. VA Reviews the Application Forms Submitted by the Home Buyer and VA Home Loan Expert.
-Step 7. The Home Value Amount vs. Calculations of Home Buyer's Eligibility is Assessed and Determined by the VA. If Application is approved, the Home Buyer gets the VA Home Loan!
VA Loan Income Requirements
VA requires a borrower to have sufficient and adequate income to cover the repayment of the mortgage. Before a borrower can be approved for a VA home loan, the stability of income and the continuance of the borrower's income must be established through acceptable sources of income, the borrower's past employment record, and the employer's confirmation of continued employment must be established.
Stability of a person's income is generally derived from their employment history. VA requires verification for the previous two full years and must be documented through lender verifications of previous employment or W-2's. This income must be analyzed to determine whether it can be expected to continue through the first 3 years of the mortgage loan (if the borrower intends to retire during this period, the expected retirement income, social security benefits, etc. should be used). Any gaps in employment must be reasonably explained by the borrower. Schooling or education for the borrower's profession (e.g. nursing school) can be counted towards the 2 year requirement. Allowances for seasonal employment, such as is typical in the building trades for example, may be used.
The following is a break down of the different types of income VA considers acceptable:
- Salary / W-2 Income
- Overtime or Bonus Income: Both may be used to qualify the borrower as long as the income has been received for the past two years and is likely to continue. An average of the bonus or overtime income over the last 2 years is used.
- Part-time Income: Part-time income (second job) may be used in qualifying if the borrower has a 2 year employment history without interruption. Seasonal employment may be used if the borrower can demonstrate a 2 year history and the probability of continuation. Income from part-time positions that does not meet these requirements should be considered as a compensating factor only.
- Commission Income: Commission income must be averaged over the previous 2 years. The borrower must provide his/her last 2 years Federal tax returns (1040's) with all schedules. Any un-reimbursed business expenses must be subtracted from the gross income.
- Retirement / Social Security Income: Verification from the source is required. If the income should expire within 3 years, the income cannot be used to qualify the borrower and used only as a compensating factor.
- Alimony, Child Support, or Separate Maintenance: Though not required for qualification, a borrower who chooses to use this income must 1) provide a 12 month payment history from the ex-spouse or courts showing timely payment and 2) provide evidence that such payment will continue for at least 3 years. A copy of the divorce decree, settlement agreement, etc. will be necessary.
- Notes Receivable: A copy of the note and evidence that payments have been received for a minimum of 12 months are required. Should the note expire within 3 years, it can be used as a compensating factor only.
- Interest and Dividends: Interest and dividend income may be used provided documentation (such as tax returns or account statements) supports a 2 year history of receipt. This does not include dividend re-investment plans.
- Rental Income: Rent received from investment properties owned by the borrower may be used, subject to the proper documentation. Income from roommates, etc., in a single-family property to be occupied as the borrower's primary residence is not acceptable. Rental income is calculated by calculating 75% of the gross rents received minus any mortgage payments paid for the property (this may have a positive or a negative effect on a person's income).
- Self-Employed: A borrower with 25% or more ownership interest in a business is considered self-employed. The income from borrower's self-employed less than one year is not acceptable. Borrower must supply the following: 1) personal tax returns for the most recent 2 years (with all schedules), 2) K-1's, 1120's or 1120S's for the last 2 years, financial statements (profit and loss statement and a balance sheet) for the interim and last 2 years, 3) borrower will have to sign an 8821 or 4506 income taxes release form.