New Home Loan Rules For Military Retirees Can Bite You
You are retiring from active duty within the coming year, and you want to buy your retirement house with your VA home loan. Or at least you want to buy a house where you will begin your second career when you retire from the military.
Until now, home loan companies qualified you based on your current active duty pay. However, that has changed, if you have put in your papers to retire within the coming 12 months. Your retirement date is now noted on your Leave and Earnings Statement (LES).
Mortgage company guidelines now require loan originators to no longer use your base pay, BAH, and BAS for loan qualification; They now use just your retirement pay.
So if you are buying a home six months before you retire, your qualification will be based on just your retirement pay, your VA disability pay, and money your spouse may earn.
If you are buying within a month or two of retirement, and you have a job locked
down when you retire, your income from your new job will count toward qualification. The lender will need a copy of your first paycheck before the loan goes to the underwriter and the closing department.
Is this just a small detail, or is it a big hassle? Well I suppose it depends upon your situation. If you can qualify to buy your house with just your retirement pay, disability pay, and any other pay prior to separation from the military, then it’s no big deal.
However, if you are hoping for a door-to-door move when you retire, and your loan approval requires a copy of your first paycheck, then you shall be disappointed. You’ll need temporary housing and a place to store your stuff for 2-3 weeks until your loan is ready to close.
No matter what your circumstances, you’ll need an experienced REALTOR and loan office to walk you through this process… this is NOT Real Estate 101 or Lending 102. It’s a bit complicated. It takes seasoned pros to work out the details.
This may sound a bit self-serving, but hey, this is my blog… you can count on me to walk you through this process in the shortest amount of time, and with the fewest hassles.
I’m Erick Blackwelder, and I’ve coached hundreds of VA home buyers through the process of buying a home, and getting a VA loan. You may text or call me at 703-677-1120 to start a conversation about your situation, and what I can do to help you make your move with the fewest hassles.
Or you may use the email link on my website to start an email conversation. Don’t worry, I’m not a pushy salesman, and I don’t bite. Just go to my website to start a conversation with me.
This is not a roadblock… we can make it a speed bump. I’ve helped over 2,000 nice folks like you over the past 24 years reach their goals I’m just a text or phone call away, 703-677-1120.
Exit Realty Associates
Specializing In Northern Virginia
8998C Lorton Station Blvd
Lorton, VA 22079
Equal Housing Opportunity