Can You Get A VA Mortgage With An Open CAIVRS Report?

Yes you can, depending on your scenario. 

If you have applied for a VA Mortgage and had your loan denied because of the  CAIVRS Report you probably wondered why and what it is.

CAIVRstands for Credit Alert Interactive Voice Response System. The U.S. Department of Housing and Urban Development maintains this system, which includes federal tax liens and information from  governmental agencies like VA, FHA, USDA & SBA to name a few. 

For example, veterans who have yet to settle over-payments on education or disability income may trigger a hit in the CAIVRS system.  Perhaps the most common CAIVRS Report issue is tied to defaulted student loans so staying current on federal student loans is critical.

Here is a scenario I’ve been running into lately.

I’ve had several people contact me after getting turned down by other lenders that had filed chapter 7 bankruptcy and included an FHA backed mortgage in the bankruptcy.  

The bankruptcy isn’t an issue once it has been discharged for 2 years  under the VA guidelines for a new VA Mortgage. The problem is when  FHA pays a claim, you end up with a CAIVRS Report. Pretty much every VA Mortgage lender out there will tell you there is no way you can  get approved for a VA Mortgage until you clear up your CAIVRS Report but the only way to do that is to pay off the claim or wait it out!

The good news is I can get your VA Mortgage approved & closed even though you have an open CAIVRS Report as long as the CAIVRS Report was the result of an FHA or VA Mortgage being included in a bankruptcy or through foreclosure and it’s been at least 2 years since the discharge or the foreclosure sale! 

Look at some reviews from Veterans that I’ve helped get a VA Mortgage for a new home with an open CAIVRS hit.

These reviews are not made up testimonials on my own site, these reviews are on my www.Trulia.com & www.Zillow.com profiles.

http://www.trulia.com/mortgage-lender-profile/993995/

If you have questions or you want to see how much you qualify for, feel free to call me at (877)228-9069 or fill out the form below.

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Applying for a VA Mortgage After A Short Sale:

July 17, 2014

If you’re searching for answers to when you might be eligible for a VA Mortgage after a Short Sale you’ve likely seen or heard things like , VA requires a 2 year wait or you maybe eligible for a VA Mortgage in less than 1 year if you were not late on the mortgage payments leading up to the Short Sale. The truth of the matter is this, VA DOES NOT have specific, written, guidelines regarding Short Sales so lenders apply FHA and Fannie Mae Short Sale guidelines to their VA Mortgage requirements.

I have been able to approve and fund VA Mortgage after a Short Sale for Veterans less than 1 year from their short sale when there were no late payments on the mortgage leading up to the short sale and just over 1 year when there were late payments on the mortgage. We have to review the VA Mortgage underwriting guidelines to see why there is a difference.

Here are the actual VA Mortgage underwriting guidelines:

http://benefits.va.gov/warms/pam26_7.asp

Chapter 4 pages 43- 45

Adverse Data

Reestablished Credit:  In circumstances not involving bankruptcy, satisfactory credit is generally considered to be reestablished after the veteran, or veteran and spouse, have made satisfactory payments for 12 months after the date the last derogatory credit item was satisfied.  For example, assume a credit report reveals several unpaid collections, including some which have been outstanding for many years.  Once the borrower has satisfied the obligations, and then makes timely payments on subsequent obligations for at least 12 months, satisfactory credit is reestablished.

So it makes sense that if a Veteran was late on their mortgage payments leading up to the Short Sale, they would have to wait 12 months to be eligible for a VA Mortgage after a Short Sale to show they’ve re-established their credit.

Here is additional guidance from VA and I’m told VA will update their guidelines to reflect this information soon.

“If a veteran’s overall credit record is good, we do not think the fact that he/she did a Short Sale, should be a bar to obtaining new credit.  Nor do we think a mandatory waiting period is necessary, similar to the waiting period after a foreclosure or bankruptcy. 

We think a Short Sale just reflects the historical collapse of the real estate market.  If the borrower’s overall credit is satisfactory, a lender can still determine the Veteran is a satisfactory credit risk.  Hopefully, the payments on the mortgage were paid timely, but even if there were some delinquent payments, they should just be viewed from the perspective of all the borrower’s credit. VA’s position on Short Sales is as long as there is no remaining deficiency balance owed (that can become a judgment lien), and the veteran has resolved his credit issues, they are eligible for a new VA Mortgage after a Short Sale.”

 You have to find the right lender to help you when Applying for a VA Mortgage after a Short Sale. I have the investors that actually follow VA’s guidelines so I can get your VA Mortgage closed even if you’ve had a Short Sale. 

If you have questions or you want to see how much you qualify for, feel free to call me at (877)228-9069 or fill out the form below.

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Great News – 100% VA Cash Out Refinances Now Available!

Update! – July 17, 2014

• Maximum loan to value for cash-out transaction where the veteran pay offs an existing mortgage and other consumer debts through the closing is 100% of the appraised value of your home.

The update is we are now allowing cash in hand on your refinance! We will still allow you to pay off credit cards, car loans or any other consumer debt as long as the pay offs are handled by the title company.

The VA Loan guidelines consider a VA Refinance to be cash out even if you’re not receiving cash back at closing or paying off non-mortgage debt if you’re not doing a VA IRRRL.

In most cases lenders will limit your new VA Loan to 90% of your home’s appraised value even though the actual VA guidelines allow up to 100%! For example; If your home appraises for $300,000.00, the maximum loan amount would be $270,000.00 or 90% of $300,000.00.

Now let’s say you just want to refinance your current non VA Loan to a new VA Loan. Under the VA guidelines this would be considered a cash out refinance and limited to 90% of the appraised value due to lender guidelines.

The good news is we now have that ability to refinance an existing non VA Loan in to a new VA Loan at 100% of the appraised value!

For more information regarding the VA cash out refinance to 100%, please Contact Us or call (877)228-9069

Program details are below for this incredibly easy VA Refinance.  We lend nationwide!

VA Cash Out Refinance Highlights:

One of the only programs left that will allow 100% financing on a refinance of an existing mortgage.

Qualification requirements:

1.  Must be currently employed.

2.  620 or better middle credit score.

3.  No late payments on your mortgage over the past 12 months.  One 30 day late may be acceptable with explanation.

4.  No liens on your home currently.

5. Must be able to document income.

We will now permit the following increased loan to value (LTV) for VA cash-out refinances.

• Maximum loan to value for 100% VA cash-out refinance transactions in which the borrower pays off only the mortgage lien(s) and finances closing costs, pre-paid expenses and discount points – 100% of the appraised value of your home.
o Second mortgages being paid off must be seasoned at least one year and may not have had draws in the most recent 12 months unless the draws were for documented home improvements.
o Minimum credit score for 1-2 unit properties – 620
o Minimum credit score for 3-4 unit properties – 640

 

Update!

• Maximum loan to value for cash-out transaction where the veteran pay offs an existing mortgage and other consumer debts through the closing is 100% of the appraised value of your home.

This does allow cash in hand but will allow you to pay off credit cards, car loans or any other consumer debt as long as the pay offs are handled by the title company.

This is up from the previous 90% limit!
o Minimum credit score for a VA cash out loan where the loan is over 90% of the appraised value of your home with cash back to the borrower and/or non-mortgage debt consolidation and property is SFR – 620.
o Minimum credit score for a VA cash out loan where the loan is equal to or less than 90% of the appraised value of your home with cash back to the borrower and/or non-mortgage debt consolidation and property is SFR – 620.
o 2-4 Unit properties are not permitted

We can structure your VA refinance so that you skip 2 mortgage payments!

In addition, you should receive an escrow refund from your current lender. This means more “cash” in your pocket!

Does a 100% VA cash out refinance make sense for you?

Fill out our no obligation quick quote tool to find out how much you can save!

Click here to get started!

 

VA 2nd Tier Entitlement Or Bonus Entitlement

 

Most people think you can only have one VA loan out at one time but that’s not true under the VA 2nd Tier Entitlement.

Here are several examples of how you can use the VA 2nd tier entitlement to buy another home using a VA mortgage.

The following examples illustrate some common situations involving VA loans. They are by no means comprehensive. Due to variations in the amount of entitlement available to an individual veteran, loan limits for individual counties, and purchase prices for homes, situations may arise which are not covered here.

 
Example 1
Veteran has full entitlement available, and is purchasing a home for $300,000 where the county loan limit is $417,000.
$417,000 X 25% = $104,250 Available Entitlement
$300,000 X 25% = $75,000 Guaranty and Down Payment Combination Required. Since VA’s guaranty is limited to the lesser of 25% of the county loan limit or 25% of the loan amount, VA will guaranty $75,000 on Veteran’s $300,000 loan in this county. A down payment should not be required.

This example has nothing to do with the VA 2nd Tier entitlement but it does give you an idea of how VA entitlement is calculated which is going to be the basis for every other example below.

 

Example 2
The Veteran has used $48,000 of entitlement on a prior VA loan, which may not be restored, and is purchasing a home for $320,000 where the county loan limit is $625,000. We need to calculate the total available entitlement in order to figure out the maximum VA 2nd Tier entitlement. To do this you take the VA county loan limit and multiply by 25% so it looks like this -$625,000 X 25% = $156,250 which is the maximum VA entitlement available. To determine exactly how much VA 2nd Tier entitlement the veteran has available we’re going to subtract what’s been used from the the maximum amount available which would look like this – $156,250 – $48,000 = $108,250 VA 2nd Tier Entitlement available. Now we’re going to figure out how much that will cover on a new VA loan. Take the available entitlement of $108,250 and multiply it by 4 & you get $433,000. This is the maximum new VA loan amount with out a down payment.

 
Example 3
Veteran has used $104,250 of entitlement on a prior loan, which may not be restored, and is purchasing a home for $380,000 where the county loan limit is $815,000.
$815,000 X 25% = $203,750 maximum VA entitlement available
$203,750 – $104,250 = $99,500 VA 2nd Tier Entitlement
$99,500 X 4 = $398,000 maximum loan amount using the VA 2nd Tier Entitlement
Since the proposed loan amount will be less than $398,000, the lender will receive 25% VA Guaranty on the loan of $380,000 so a down payment would not be required.

Now we’re going to look at a couple of examples where a Veteran would need a down payment when using the VA 2nd Tier Entitlement.

Example 4
Veteran has full entitlement available and is purchasing a home for $480,000 where the county loan limit is $417,000.
$417,000 X 25% = $104,250 Entitlement Available
$104,250 / $480,000 = 21.72% Guaranty
Since VA’s Guaranty will be less than 25%, a down payment will likely be required to meet investor requirements.
$480,000 X 25% = $120,000
$120,000 – $104,250 = $15,750 Down Payment.

 

Example 5
Veteran has used $27,500 of entitlement on a prior loan, which may not be restored, and is purchasing a home for $320,000 where the county loan limit is $417,000.
$417,000 X 25% = $104,250 Maximum Guaranty
$104,250 – $27,500 = $76,750 VA 2nd Tier Entitlement available.
$76,750 / $320,000 = 23.98% Guaranty
$76,750 X 4 = $307,000 Maximum Loan Amount with 25% Guaranty
Since VA’s Guaranty will be less than 25%, a down payment will likely be required to meet investor requirements.
$320,000 X 25% = $80,000
$80,000 – $76,750 = $3,250 Down Payment on the VA 2nd Tier Entitlement

 

As you can see the VA 2nd Tier Entitlement is a great option for Veterans looking to buy a new home.

If you have questions about the VA 2nd Tier Entitlement or you want to see how much you qualify for, feel free to call us at (877)228-9069 or fill out the form below.

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Great News – 100% VA Cash Out Refinances Now Available!

Update! – November 19th, 2012

• Maximum loan to value for cash-out transaction where the veteran pay offs an existing mortgage and other consumer debts through the closing is 100% of the appraised value of your home.

This does not allow cash in hand but will allow you to pay off credit cards, car loans or any other consumer debt as long as the pay offs are handled by the title company.


The VA Loan guidelines consider a VA Refinance to be cash out even if you’re not receiving cash back at closing or paying off non-mortgage debt if you’re not doing a VA IRRRL.

In most cases lenders will limit your new VA Loan to 90% of your home’s appraised value even though the actual VA guidelines allow up to 100%! For example; If your home appraises for $300,000.00, the maximum loan amount would be $270,000.00 or 90% of $300,000.00.

Now let’s say you just want to refinance your current non VA Loan to a new VA Loan. Under the VA guidelines this would be considered a cash out refinance and limited to 90% of the appraised value due to lender guidelines.

The good news is we now have that ability to refinance an existing non VA Loan in to a new VA Loan at 100% of the appraised value!

For more information regarding the VA cash out refinance to 100%, please Contact Us or call (877)228-9069

Program details are below for this incredibly easy VA Refinance.  We lend nationwide!

VA Cash Out Refinance Highlights:

One of the only programs left that will allow 100% financing on a refinance of an existing mortgage.

Qualification requirements:

1.  Must be currently employed.

2.  620 or better middle credit score.

3.  No late payments on your mortgage over the past 12 months.  One 30 day late may be acceptable with explanation.

4.  No liens on your home currently.

5. Must be able to document income.

We will now permit the following increased loan to value (LTV) for VA cash-out refinances.

• Maximum loan to value for cash-out transactions in which the borrower pays off only the mortgage lien(s) and finances closing costs, pre-paid expenses and discount points – 100% of the appraised value of your home.
o Second mortgages being paid off must be seasoned at least one year and may not have had draws in the most recent 12 months unless the draws were for documented home improvements.
o Minimum credit score for 1-2 unit properties – 620
o Minimum credit score for 3-4 unit properties – 640

 

Update!

• Maximum loan to value for cash-out transaction where the veteran pay offs an existing mortgage and other consumer debts through the closing is 100% of the appraised value of your home.

This does not allow cash in hand but will allow you to pay off credit cards, car loans or any other consumer debt as long as the pay offs are handled by the title company.

This is up from the previous 90% limit!
o Minimum credit score for a VA cash out loan where the loan is over 90% of the appraised value of your home with cash back to the borrower and/or non-mortgage debt consolidation and property is SFR – 620.
o Minimum credit score for a VA cash out loan where the loan is equal to or less than 90% of the appraised value of your home with cash back to the borrower and/or non-mortgage debt consolidation and property is SFR – 620.
o 2-4 Unit properties are not permitted

We can structure your VA refinance so that you skip 2 mortgage payments!

In addition, you should receive an escrow refund from your current lender. This means more “cash” in your pocket!

Does a VA refinance make sense for me?

Fill out our no obligation quick quote tool to find out how much you can save!

Click here to get started!