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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Larry Lichtman’s answer
Larry Lichtm…, Agent, Bala Cynwyd, PA
Wed Oct 26, 2011
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
Shane Milne, Mortgage Broker Or Lender, South Jordan, UT
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
R. Eric Axel…, Agent, Cherry Hill, NJ
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
Keith J. Law…, Agent, Philadelphia, PA
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
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