Home Buying in Dover>Question Details

Derrik Mullin, Home Buyer in Outside U.S.

Disabled Veteran looking to move back home from Overseas. Not sure where to start.

Asked by Derrik Mullin, Outside U.S. Mon Jul 16, 2012

I am a medically retired veteran currently working in Germany as a DoD civilian, my wife and I are currently looking into purchasing a home near my Hometown of Clayton, DE, using either the FHA or VA mortgage programs.

I have a few questions in regards to this whole process:

1. How can I go about purchasing a home in Delaware, without having to make multiple trips to and from Germany? Is it possible to give my Mother power of attorney to act as my purchasing agent? Are there any other options?

2. I have read on VA's website that without a rental history, I do not qualify for a VA loan. Even if I were renting a property in Germany, I would be unable to obtain verification from the Renter, or provide 12 months of cancelled checks as proof, because in Germany, rent is paid by wire transfer.

3. I am pretty handy with repairs, and am interested in buying an older (1900-ish) home to fix up, is it possible to to that with FHA or VA loans?

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Answers

7
Hey Derrick,

I too am a disabled vet AND a Delaware Loan Officer who works with Many veterans here in DE to get their Home Financing squared away. I have good knowledge on what you'll need to do to get you in your home and also your Points of contacts inside the VA.

First step will be to get acquainted with the VA Home Loan. Go to this site for good info:

http://www.therealestatetoolbox.net/va_home.htm

Should you have any further questions or concerns, please email me @ mtg4myhome@gmail.com.

Talks soon - Chris Rowe, The Real Estate Tool Box.
0 votes Thank Flag Link Mon Oct 1, 2012
Derrik,

First, let me thank you for your service as a military man and then as a DOD civilian. I am retired AF and I understand your situation.

Let me answer your questions:

1. I can set you up on an automated search or you can search for properties on my web site by going to http://www.WeSellDelawareHomes.com. Once you choose homes that you are interested in, I can take your mom to look at them. She can get a POA for you and make the purchase. I helped a your airman stationed in AZ do the exact same thing.

2. According to my lender this situation will come into play if there were some issues with your credit. It's best to speak with my lender to clear any of those questions up for you.

3. Fix up is usually not allowed with VA loans. With FHA loans you may be able to get a home with minor repairs needed unless you do a 203K loan which will allow for extensive repairs. I recommend you not go with anything like that if you are not going to be here to look the home over before writing a contract, unless you mom is able to make that call for you.

Send an email to me at Ron@WeSellDelawareHomes.com and check us out at http://www.RonAndSandyHohrein.com
0 votes Thank Flag Link Mon Jul 16, 2012
Derrik,
First of all, thanks for serving; we never heard that in '72.

You will want to try first with the VA, they have a lot of help, particularly with disabled Vets.
You will need to get your Certificate of Eligibity, if you don't already have it. You may be able to do this via e-mail, I don't know.
The VA loan is No-Down and the Interest Rate is just a little bit higher. This might vary from lender to lender; you would not be locked-in to one Lender, you still want to shop around.
Since 2007 they are socking it to us with a FUNDING FEE; 2.15%, that can be paid or added to the loan. Being DISABLED, you will not have this Funding Fee.
VA protects the Vet with lower Closing Costs.
When you have selected a house, and are in Escrow, you need to communicate with your Title Company; get your copy of the HUD1 that will show fees and monies.
Work with a Realtor; there is no charge to the Buyer; the Buyer's Agent is paid by the Seller: I'm sure we have some good Realtors on Trulia in Delaware. If you don't see one, look to the right for VIEW TRULIA VIPs and click on it. Enter your city and you will se a list of Realtors. You can access their PROFILE and RECOMMENDATIONS and e-mail them and ask questions.

Can you still bring a MB or a BMW home when you come?

Good luck and may God bless
0 votes Thank Flag Link Mon Jul 16, 2012
Derrik,

Speaking with a local Delaware Loan Officer is the best place to start. They will be most knowledgeable about what type of loan will best suit your needs. Another type of loan to inquire about is a USDA loan. Most of the Clayton area will qualify for this type of loan (it is for homes outside of highly populated areas; "rural housing" is another name you will hear used for this type of loan), but it does have the same type of guidelines as FHA & VA for the condition of the home. As Yvonne mentioned, a renovation loan might work for you as well, but this is something to discuss with your loan officer. Generally with a renovation loan, an approved contractor needs to do the work, so your handy skills may not be able to be utilized. Looking for a home that doesn't need major repair, but mainly cosmetic repair, may be the better option. It will all depend on what type of financing you will be comfortable with. Purchasing a fixxer upper with an investment loan will still have a pretty great rate right now, but you will need at least 20% down. If you would like to contact me at Bobbi@1stClassProperties.com, I will be happy to send you the contact information for a few great local loan officers.
Once we sort out the financing aspect, I can email property listings to you and I can either tour them with your mother or send you video tours of the homes you are most interested in. We will want to discuss the Power of Attorney option with the loan officer as well, but I am confident we can accomplish a purchase with you out of the country with all of today's technology!
0 votes Thank Flag Link Mon Jul 16, 2012
I agree with my colleagues that have already answered. The only issue that strikes me on the VA loan that I wanted to add to is that a VA loan is only available for an owner occupant and not available for an investment property. The make you sign an affidavit that you will occupy the property and a homestead declaration. Since you don't want to travel from Germany, it appears you would be buying this home now, but occupying in the future which will not work on a VA loan.
0 votes Thank Flag Link Mon Jul 16, 2012
Derrick: You can get a mortgage, providing you qualify, with an FHA Rehab loan. The best first step is to find a lender so you can get pre-qualified before looking for a home. This way, you will know exactly how much home you can afford and if the rehab loan will work for you. There are many homes on the market to choose from. I will inquire about how you will go about getting your mortgage and doing settlement before coming to Delaware. I would be happy to do the search with your mother. Please feel free to contact me directly at yvonnehall@kw.com so we can discuss your needs and get you qualified. I look forward to hearing from you. Yvonne
0 votes Thank Flag Link Mon Jul 16, 2012
#1 - You can; but you don't have to. Closing documents can be express mailed, faxed, or e-mailed anywhere; and you can send the documents directly back to the closing agent.
#2 - Your first step would be to contact USAA to see if you qualifty for a loan. Check out their website at http://www.usaa.com
#3 - Advise a local Realtor what you are looking for. The agent can find out if the home would qualify for a VA or FHA Loan.

Plesae let me know if you need a qualified agent in the area you'd like to purchase.
Phil Rotondo, Realtor
ERA Showcase Properties and Investments
1-800-780-7770 x-7878
mailto:phil@321property.com
0 votes Thank Flag Link Mon Jul 16, 2012
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