Financing in East Falls>Question Details

andthenthere…, Home Buyer in Philadelphia County,...

We have no debt, great work history, good credit but little savings, and want a VA with no down, is low bank savings a serious downgrade in prequal?

Asked by andthentheresmaude, Philadelphia County, PA Wed Oct 26, 2011

Also do we list retirement funds on a VA pre-qual as an asset?

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4
Larry Lichtman’s answer
Hi,

May I suggest you contact a mortgage broker to answer all the VA loan questions. I recommend contacting Ed Dubinsky: Phone: 215-808-5353 E-mail: edubinsky@ahmcloans.com.

Good luck with everything. If you need any other assistance, again, please feel free to call me anytime.
It's always nice to be able to help a fellow Veteran.

All the best,
Larry Lichtman
REALTOR, Property Manager
Your Real Estate Resource For Life
Cell/Text: (267) 254-7994
Web Reference: http://www.DJCRE.com
2 votes Thank Flag Link Wed Oct 26, 2011
Unless you are using rental income in order to help yourself qualify (like in the situation where you owe a rental property), VA mortgages do not require you have any assets, you could literally be flat broke, not a dollar in your bank accounts, and be fine to get a VA loan.

However having liquid assets will always be helpful, as it is called a "compensating factor" and is one of a variety of ways to make an underwriter feel more comfortable with your loan. For example I had a VA client with a debt to income ratio over 50% and our underwriter required we document compensating factors in order for the loan to get approved - one of the compensating factors was funds in a retirement account.

So to answer your other questions, yes, 60% of the vested amount in retirement accounts can be used as liquid assets when qualifying for a VA loan. You also must be able to access the funds without retiring, etc. (so in a situation where it's a pension that can't be touched until retirement, that can't be used). If it's a regular 401k or IRA those usually have no problem being used.
1 vote Thank Flag Link Wed Oct 26, 2011
Hi again,

I am very experienced with assisting veterans. My father is a Vietnam vet (Navy flight deck) and recently won a volunteer award for his help at his local VA clinic. I would be HONORED to help you get into a home.

Eric Axelson
856.617.1212 mobile
axelson@kurfiss.com
Web Reference: http://kurfiss.com
0 votes Thank Flag Link Wed Oct 26, 2011
Good Morning,

I have assisted many buyers with VA loans. Feel free to give me a call, I'd be happy to help.

Warm Regards,

Keith J. Lawson
REALTOR®
RE/MAX Affiliates N.E.
9237 Frankford Ave.
Phila, PA 19114
267-688-1110 (cell)
215-992-5534 (office)
LawsonRE@gmail.com (email)
http://www.keithlawsonhomes.com (web)
Member- N.A.R.,P.A.R.,G.P.A.R
Member - AREAA Philadelphia Metro
Follow me on Facebook at http://facebook.com/keith.j.lawson
Follow me on Twitter http://twitter.com/#!/KEITHJLAWSON
0 votes Thank Flag Link Wed Oct 26, 2011
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