VA Loan - Trying to find finance a home while transitioning from Active Duty to VA Retired 100% Disability

Asked by gilligan2404, Omaha, NE Thu Nov 15, 2012

Trying to buy a home in Omaha. The lender we are working with (Military Family Home Loans) has pre-approved us and we put an offer on a home. The buyers accepted and we continued with inspections and the paperwork to close on the home. The lender issued the appraisal two days ago and tomorrow the appraisal will take place. The lender called us today and said that they cannot finance us with out proof of income. I will not be separating until January 28, 2013, but start my terminal leave December 9, 2012. We are trying to close on the home on December 15, 2012. I will be receiving pay throughout my transition from active duty to medically retired with 100% disability (2 months maxim from date of separation 01/28/2013). They want a letter in writing of a date and an exact amount I will be receiving. As you may know that is not something our government does. When they get to it, they get to it. Is there anything that you can suggest. Please any advise is appreciated. Thank you

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3
Monica Lang, Agent, Omaha, NE
Mon Dec 17, 2012
If you are considering a new home in Omaha, Celebrity Homes has 4 preferred lenders that could potentially help you. http://celebrityhomesomaha.com/financing.html

If you would like to visit our model homes, please stop out to 6016 S 191st Terrace (corner of 192 & Y Street) I have 3 models here you can tour. I have represented Celebrity for over 15 years. http://www.TucsonDLX.com
I would love to help you find the perfet new home to fit your needs.
0 votes
Kelly Gitt, Agent, Omaha, NE
Thu Nov 15, 2012
There are 2 separate issues here: 1. If no one can provide documentation of your retirement pay or is willing to write a letter, then you may be out of luck. I would lean heavily on the guidance of those that are outprocessing you as they are your best resource to make a seamless transition into civilian life. 2. Regarding your VA loan, while on active duty I would imagine you currently do not have disability. This is an outstanding loan that allows a Buyer to go 0 down. Therefore when you use your VA loan you pay an upfront funding fee so for example if the purchase price is 100k you will finance a little over 102k so you are a little top heavy when you close if you pay market value for the home. The fee increases each time you use the loan. When you have over 10% disability, your funding fee is waived. I too am a veteran & have used my loan several times & have maximized the benefit because I also have disability so my funding fee has always been waived. Personally if it were me, I would not buy a home until after you are retired unless you are taking a pay cut & would qualify for less, affecting your overall purchasing power. If your retired pay is equal or greater than active duty, it would be a short term loss for a long term gain because of the benefit of waiving the funding fee.
0 votes
USAA referred us to Military Family Home Loans. No one has anything good to say about them. It seems they are a call center environment, that is undermanned who outsource underwriters. We are now working with security national bank and considering Centris FCU.
Flag Sat Nov 17, 2012
Thank you also for your service! I wish you the best & would agree I think your lender is pretty conservative. There's got to be a way around that by providing your documentation of disability.
Flag Fri Nov 16, 2012
I am going to be 100% disabled. That is just over $3000 a month (Veteran with Spouse & Child) of non-taxable income. I have my med-board paperwork, separation paperwork and VA-Rating. I do not understand why they are being so strict when the house payment is under $900 a month and I have good credit. Thank you for your response and service to our country.
Flag Thu Nov 15, 2012
Shane Milne, Mortgage Broker Or Lender, South Jordan, UT
Thu Nov 15, 2012
Does your certificate of eligibility say how much your disability income is, or do you have a disability award letter from the VA yet on how much you will be receiving in disability income? Do you have sufficient assets to cover your payments between now and when you will start to receive the disability income?

Shane Milne | Lending in all 50 states | NMLS #81195
0 votes
The funding fee being waived shouldn't be an issue - as either you are exempt from it or you are not. If you are exempt from it, then it clearly says on the certificate of eligibility. But if you get the VA funding fee waived, then the loan officer knows you are getting disability income so it may be related in that regards.

But if you have your disability award letter - what are they asking for then? The proof of how much you'd receive for the 2 months between your retirement and when the disability income would begin?

You could try talking to a manager, but the underwriter is the one who is requesting this, most likely to be able to sell the loan to the eventual investor. However the manager may be able to sell it to the investor after you begin receiving your disability income pay, which if it's just for 2 months, then the manager may OK servicing the loan for that amount of time. It is their call though. Definitely let them know you have assets & other income to pay.
Flag Thu Nov 15, 2012
Hi Shane,
I do have my disability award letter, that is what the loan is being based off. Yes we will be able to pay, as my husband works as well, but is not on the loan. Also I will be getting paid from the Air Force until the VA Starts paying. I just cannot see why this is such an issue. The estimated house payment is going to be under $900. Also I wanted to add that the loan officer was very helpful until we mention that we want to have the funding fee waived. That is when this issued arrived. Should I try to talk to a manager? Thank you again for such a prompt response. This is nerve wracking. Your advise is really appreciated.
Flag Thu Nov 15, 2012
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