My name is Drew Smith and I am a licensed loan officer. The process of purchasing a home or refinancing can be overwhelming. I created this channel as a platform to share information about that process to help better educate and prepare potential buyers and home owners.
The best part of my job is meeting and talking with clients. If you have any questions please feel free to contact me and engage in a discussion by leaving a comment.
I was denied my COE, IN 2004, after starting a land/construction build, my only home, EVER: BE AWARE: they took my home, I've been homeless for 19 years! SHAME ON AMERICA! 😡! bunch of greedy, hypocrites!
I’m going to guess our lenders don’t allow these. I’ll look into it though! I had to look it up and it’s pretty interesting what they’re doing with these homes!
Wow. Really great video. The way you described barndos was interesting. Some barndos are not kits, but site built custom just using steel and post frame. Are you saying post frame is not allowed?
Thanks for the comment. It’s something we could look at if you have plans or a builder. Our lenders aren’t doing barnominiums or post frame homes at the moment. You can check with the builder or manufacturer and see if they have a preferred lender they recommend. Also you’re right, not all barndos are kits. I was speaking about other homes. I’ve had some borrowers interested in kit homes. You can look them up. Most of the ones I’ve seen are log cabin types. It’s 2 different types of homes. Thanks!
Does "one time close" mean that this construction loan will also be my Perm loan? Or do I need to get another bank or credit union to Take over for the Perm loan? I may have answered my own question :) But im curious.
@@drewsmithloanofficer Thank you. Unfortunately the issue is finding a lender that will utilize this Benefit. It shouldn't be this difficult for veterans to find lenders that are able to help get a VA construction loan. I hope someday they will utilize it more.
Question on closing costs…what is waved for veteran not paying if they are at least 10%? Is that just VA fees but we would still have to pay closing costs correct? Thx!
That is the funding fee from the VA. On a first time purchase it’s 2.15% and on all subsequent purchases it’s 3.3%. It is waived it a borrower has a service connected disability rating of 10% or greater. It’s also reduced if a borrower puts money down, either 5% or 10%.
So yes we can do DTI up to 65%. Technically there’s no limit on DTI for a VA loan but there are other considerations such as residual income. We do not add current rent in DTI, just the future mortgage payment. Does that answer all your question?
I’ve only inquired through Veterans United. My loan officer said I would need to own the land 1st and would not be able to include a land purchase in the overall VA construction loan. Do you think that is just their policy and I might have luck finding another lender to include the land contract under 1 loan with the build, how you mentioned?
Yes that something we do. It’s called an OTC VA loan. You can buy the land and build all at the same time. Please feel free to reach out to me. My contact information is in the description of this video.
That’s something we have as an overlay. I’ve heard other lenders might have the ability to build a multi-unit. If I find one I’ll make a video about it.
I’m looking into getting VA one close loan, but currently have a conventional loan. I would sell the home I’m currently living in, before moving into new. How difficult will it be to get approved for a loan when my debt to income currently includes my current residence?
They might, the biggest issue I’ve had is finding a lender to loan on those custom types homes. I don’t know any lenders at the moment doing the OTC VA loans that will do those. Right now they’re only doing traditional manufactured, modular and site built homes. If I find a lender doing those custom type homes I’ll be sure to make a video about it! Thanks.
Thanks for the info. Could you address the issue of loan to value (LTV) on a Guaranteed VA loan. I borrowed $147,600 on a house that was appraised at $164,000. If you subtract the 25% from the amount borrowed, (the risk to the lender that the VA assumes) this leaves $110,700 risk to the lender or an LTV of 67.5%. This is well below the 80% risk threshold required to establish an escrow account. My loan was purchased by another lender. This lender claims that the LTV on this loan is over the 80% risk threshold and setup an escrow account for my homeowner's insurance along with interest, fees and other cost to manage that escrow account. If the VA guarantees 25% of the value of the loan, then the LTV was never more than 67.5%. My lender has refused to address this issue and continues to compute the LVL risk as if they had 100% loan risk, and continue to make demands for escrow payments, fees, late charges and other costs. I pay my homeowners insurance a year in advance directly to my homeowners insurance co. Can you please comment on how LTV is calculated on a VA guaranteed loan. Ken Rowan
Your take is quite informative. I wish more RU-vidrs would put the same effort into producing a video. Anyway, thank you for explaining credit requirements for VA Loan!
Can you get a va mortgage loan and a construction loan at the same time? I mean I get the mortgage loan to buy a house but there are certain thing I’d like to do in the house like build up or finish the basement, can I get a construction loan added to a new va mortgage loan?
Hello I have my certificate of eligibility. I live in California, and I have a steady job here but I would like to buy a house in another state. What are the residency requirements for VA home loans?
@@drewsmithloanofficer, GREAT video!!! I am also interested in a list of lenders that offer the VA OTC, but for Georgia. Is this some thing you can help provide?
@@drewsmithloanofficercan you tell me what the reasoning is? What is the factor that differentiates a shop house/barndominium and a standard house? We are looking to possibly build in Arkansas and we were wanting to go this route.
Your take is quite informative. I wish more RU-vidrs would put the same effort into producing a video. Anyway, thank you for explaining the VA loan. We never stop learning.
