Hello World!! – Sidwell Mortgage

Hello World!!

Welcome to the FIRST EDITION of the VA Information Portal Blog. This blog is a resource of the Sidwell Companies.

And so, it’s come to this. After more than 20 years of arranging mortgages in the state of California and encountering every type of borrower, loan program and mortgage scenario imaginable, we’ve been told that we must start blogging. Our millennial associates insist that such knowledge has to be shared. With that in mind, treasured reader, please be empathetic as we make our first foray into the blogosphere. Does this blogging thing require some type of license? Should it?

The objective of this blog is fairly simple. First and foremost we want to make servicemembers aware of their VA Home Loan Benefit. In a 2014 survey of 2,000 members of the Iraq and Afghanistan Veterans of America (IAVA) association, only 36% said they had applied for a VA home loan. The percentage is so low because many veterans were never made aware of the benefit. Sidwell Mortgage is changing that.

Secondly, we want to explain VA home loans in a clear, understandable and sometimes funny manner. The goal is to remove fear and intimidation from the mortgage lending process. We understand that in life Stuff Happens! And in military life Stuff Really Happens! Regardless of the circumstance there’s usually a way for the servicemember to buy a home, or at least start down the path to home ownership. We want to show you that path.

We’ll also discuss topics and post videos that don’t always relate to mortgages, but are nonetheless engaging and rewarding.

So thanks for reading our first blog and I look forward to you joining us for future posts. You can even subscribe so you won’t miss a word.

Until the next post … may health and happiness abound!

Questions & Answers

Will VA guarantee an investment property?

Generally speaking the answer is no, but there are exceptions. The VA loan is specifically designed to help servicemembers purchase a home they intend to occupy full-time. However, VA will allow the servicemember to purchase 1 - 4 units as long as one of the units will be owner-occupied. As such, the servicemember can purchase a duplex, triplex or fourplex, occupy one unit, and rent the others. In addition, a servicemember can buy a single family residence, occupy the home for 12 months, then vacate and rent the residence (if there is remaining eligibility on the servicemember’s Certificate, they may even buy another home using a VA loan).

Does VA require a minimum credit score?

No, VA does not have a minimum credit score requirement, but remember VA does not make home loans; VA guarantees loans that are made by mortgage lenders. Even though VA does not have a minimum score requirement, odds are, the lender that makes the home loan does. VA lenders can be more conservative than VA, but not more liberal. This means the lender can impose restrictions that VA does not require. The good news is that there are some VA lenders who underwrite to VA guidelines, imposing few additional restrictions.

Can I have more than one VA loan?

Yes. Let’s assume that you’re stationed at Fort Polk in Louisiana, and you purchase a home in Leesville, using your VA eligibility. After residing in the Leesville home for 4 years, you receive orders to transfer to Fort Irwin in San Bernardino, California. You have 90 days to move and you sell your home in Leesville. Upon selling the home in Leesville your VA loan is paid-off and your full eligibility is restored. You then use your VA eligibility to purchase a home in San Bernardino. Let’s now assume you did not have time to sell the home in Leesville, and opted to keep it as a rental. Assuming you have sufficient eligibility remaining you could also buy a home in San Bernardino. In one instance you’d have two consecutive VA loans (Leesville, then San Bernardino), and in the second scenario you’d have two VA loans at the same time – both are permissible.

May we build a home using VA financing?

Yes it’s possible, but finding a lender who’ll fund a VA construction loan is quite difficult. It’s the proverbial needle in a haystack. Typically the builder or Conventional lender will handle the financing for the construction phase and arrange a VA mortgage when the home is complete. However, here in California Sidwell offers a single loan construction option for servicemembers who are California residents.

Does VA allow 2 veterans as co-borrowers?

Yes. Generally speaking VA permits the following co-borrower arrangements: 1) A veteran and their spouse may buy together; 2) A veteran and their fiancé can buy together (if they’ll be married before the transaction closes); 3) Two occupying veterans may buy together with VA using a portion of each veteran’s entitlement to guarantee the loan; and, 4) A veteran and a non-veteran, who is not the veterans spouse or fiancé, can buy together (this is called a Joint Loan), but only the veteran’s portion of the loan will be guaranteed by VA. In some instances joint loans will have to be submitted directly to VA for prior approval.

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