Taking Advantage of Veterans and their Families during the home loan process is just flat wrong on so many levels.Â I have noticed a drastic increase of lenders that are either inexperienced or deliberately taking advantage of our Vets during the home loan process.Â I will describe 5 situations that I see on a weekly basis.
The situation starts out most frequently like this:
How it plays out:
Rather than get into the details of advanced sausage making that occurs next I will describe what I see when the vet contacts me.
Scenario 2: Starts out like #1 except the Vet has credit near the edge of what you can do a VA loan for and the Vet has been to numerous lenders attempting to get the lowest fees only to find that most of the lenders have fees with a variance of about $500.Â They tell me nothing of their shopping even when asked and after I've pulled the credit it's all over but the shouting.Â Their FICO is now below the minimum to do a VA loan and they are stuck paying the higher fees from a LO or walk away from the purchase .
Scenario 3: Similar to #1 except I start out with the Vet and say to the Vet we need to get with the seller because there are no seller contributions to cover the fees the Vet won't pay.Â We can ask your agent to seek an amendment to the contract to get those paid for you.Â The Vet says "That's not acceptable a VA loan is 100% financing and I'm not paying anything more for the house than my offer."
Within a few days the Vet notifies me they are going with another lender.Â You think that would be the end of it.Â I see the Vets Real Estate Agent a while later and ask "So how did your closing go?" The Real Estate Agent responds something like this: "Well it didn't happen.Â My buyer went with another lender as you know and they quoted some ridiculous low rate and fees that my buyer jumped at the opportunity.Â Then a few days before closing the lender send to my buyer some papers to sign.Â I think they called it a change situation or something like that and my Buyer saw the interest rate was higher and they had to bring thousands more they they were promised originally.Â The deal blew up less than a week before closing."
Scenario 4: Seller either refuses to accept a contract where the buyer is going to use their VA entitlement because they will have to pay some of the fees.Â So a Vet who has served who wishes to use their entitlement is quietly being discriminated against.
Scenario 5: Vet contacts a lender and asks about the texas vet loan program and they are told one of two things
In the end while there is nothing specifically illegal or provable about any of these situations they are in essence taking advantage of a veteran and that is highly unethical.Â In my mind once a vet has served our country they are entitled to purchase a home using the VA or the Texas Vet LoanÂ program and Loan Officers Can't offer that to them then the Vet need to seek a lender who can assist them.
More info for veterans and how to qualify can be found on our Texas Veterans Land Board Mortgage Qualification page.
Henry Daniels - Sr. Mortgage Banker & CMPSI Certified Mortgage Coach
Henry Daniels, Senior Mortgage Banker & Certified Mortgage Coach for Premier Nationwide Lending specializes in Texas Vet Loans.Â If you, a friend, a family member or a colleague have served, you can confidentially contact him at (832) 303-5693 or at the email on the Right.