Financing in Newark>Question Details

Bigdog811, Home Buyer in Denver, CO

No down payment VA Loan?

Asked by Bigdog811, Denver, CO Tue Aug 6, 2013

We're retired and relocating from Denver, CO to northern Delaware next Spring in order to be closer to our families. We'd like to move as soon as we list our current home, and get into a home ($175K-$190K) on a no down payment VA loan, with a view towards using the proceeds of the sale to pay down the principal after it happens. We're willing to assign those proceeds, up to the equivalent of a 20% down payment, to the institution that lends to us.

Our only debt is our current mortgage. The loan to value ratio is 70/30 or better. We have excellent credit histories with FICO scores in the very high 700's. We have sufficient income and cash reserves to temporarily (up to about 6 months) support both mortgages while our current home is on the market.

Understanding that much more specific financial information would be required for a definitive answer, does this seem like a doable plan? Are there financial institutions in the area that might be willing work with us on these terms?

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Hello BigDog811 --- You certainly have asked the right question that any shrewd should have. It looks like you have found a lender (John R. Thomas Mortgage Broker / Lender) which is always the first step. I see very smart and active Realtors also responding which is a good thing! If one needs to comparison shop just a little more, please visit http://www.WillWebberHomes.Com and see if my skills or experience match your expectations. When you buy in North Wilmington, you will be equidistant to both Veteran Hospitals that serve this area. (Personally, I love my relationship at the Elsmere facility). Caution: Your ability to purchase more home is better when interest rates are low. When rates change 1%, that translates to a 10% change in the loan you may get. Timing matters! Picking one good expert Lender, Realtor, Inspector, etc. also matters, and if you have made the choice, then keep me as the backup only if anything goes wrong. I would rather encourage loyalty to your expert than to risk so much shopping that you get distracted by too many people who want your business. My blog at my website talks about what a good Buyer's Agent does. --- BigDog811, please comment. Thanks in advance.
0 votes Thank Flag Link Sat Oct 26, 2013
Hi Bigdog811
You are very fortunate to have the ability to ski through the winter and then come to Delaware next spring. I also think that you received some great advise from John Thomas, a lender at the top of his field. I have worked with John before and can enthusiastically say that you will be impressed by the work of his team.

Finally, while you are waiting to transition, if you are unfamiliar with the area, feel free to go to

and start looking at neighborhoods. Have a great day.....................chris
0 votes Thank Flag Link Wed Aug 7, 2013
Thanks for your interest. I've checked your web site, and a cursory search shows some properties we'd definitely be interested in looking at were we in the market today. I'm already establishing a contact list and you're definitely on it.

You're correct. The Rocky Mountain west is absolutely glorious, especially in the winter. We've lived in Denver since '85 and love everything about it. In a perfect world we'd be enjoying winters in the mountains and summers on the Jersey shore. But alas, a choice must be made. Our grandchildren are growing up much too fast.
Flag Wed Aug 7, 2013
We can certainly help you out. You can check us out at and give us a call. One of our loan officers will look at your situation and present you with some options.
0 votes Thank Flag Link Tue Aug 6, 2013

If you are looking to get a VA loan, you first must be an eligible veteran and be able to obtain a Certificate of Eligibility. The VA loan guidelines will not allow you to use "future" money as a down payment on the loan that closes. You must prove the money you are using as "liquid" funds that are available and sourced prior to closing. You can still use 100% financing to purchase then refinance after your home sales.

You must be able to income qualify so we would have to calculate your debt to income ratio to see how much you can qualify for and would have to included your current home's mortgage payment in that ratio unless you sell it before closing.

We cannot use cash reserves as temporary income to qualify. Income that is used for qualifying must have a likely hood of continuing for at least 3 years.

If you would like to discuss your options for a VA loan in more detail feel free to cal my team at 302-703-0727 or you can apply online at

John R. Thomas
Certified Mortgage Planner - NMLS 38783
Primary Residential Mortgage, Inc.
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 Office
0 votes Thank Flag Link Tue Aug 6, 2013
Mr Thomas,

Thank you for your very quick and comprehensive on point answer.

I am VA eligible (retired Army) and have a Certificate of Eligibility. I understand all of your points as to qualification (income verification, debt to income ratio, etc.). Don't believe there would be any problems in those areas. My local advisers tell me that unless there's an unexpected drop in the Denver real estate market we'll probably be under contract for the sale of our current home in a matter of a few weeks. Supporting two mortgages will most likely be academic by the time we're ready to close on a new home.

In any case, we'll be in the Philadelphia area in mid-September. We'll still be 6 or 7 months away from a formal commitment, so I don't want you to get your antenna up. But if you're amenable, I'd like to meet with you to discuss our options.

Thanks again.
Flag Wed Aug 7, 2013
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