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looking for veterans equity loans above 80% with poor credit

by lalatisha77961 from Olpe, Kansas. May 5th 2015 Reply


Sara Deere (Mortgagequeen2)
#1 ranked lender in Missouri - 565 contributions

A basic requirement of a 620 mid FICO score is needed to start the application process. .A VA cash-out refinance home loan is a VA-guaranteed loan which refinances any type of lien or liens against the secured property. The liens to be paid off may be current or delinquent, and from any source, such as tax or judgment liens, and/or VA, FHA, or conventional mortgages. Loan proceeds beyond the amount needed to pay off the lien(s) may be taken as cash by the borrower for any purpose acceptable to the lender. The loan must be secured by a first lien on the property. The maximum loan amount is 90 percent of the appraised value plus the cost of any energy efficiency improvements plus the VA funding fee. While only the VA funding fee can be added to (on top of) the 90 percent limit to increase the loan amount, cash proceeds from the loan may be used to pay allowable fees and charges and discount points. The total of the following items, if paid from loan proceeds, cannot exceed 90 percent of reasonable value: oPayoff of liens oAllowable fees and charges (other than the funding fee.) oReasonable discount points, and oCash to the borrower. The maximum guaranty on cash-out refinancing loans is $36,000, even for loans greater than $144,000. For most other VA-guaranteed loans, the maximum guaranty is $60,000 on loans greater than $144,000. The veteran must have sufficient available entitlement for the loan. If an existing VA loan on the same property will be paid off by the refinancing loan, the entitlement used for that existing loan can be restored for purposes of obtaining the new loan. The veteran must certify that he or she intends to personally occupy the property as his or her home. Only lenders with authority to close loans automatically may close cash-out refinancing loans automatically. All others must submit these loans for prior approval by VA. Loan process procedures are virtually the same as for non-refinancing loans. A full appraisal, credit information, and underwriting are required. To report loan closing, submit all of the documents required for non-refinancing loans plus a statement signed by the veteran which shows: oThe cash proceeds paid oAn itemization of the debts paid from loan proceeds, and oThe identification of those debts secured by liens of record. Energy efficiency improvement loans can be made in conjunction with any type of VA purchase or refinancing loan. Energy Efficient Mortgages are used to improve a residence owned and occupied by the veteran as the veteran's home through the installation of a solar heating system, a solar heating and cooling system, or a combined solar heating and cooling system, or through the application of a residential energy conservation measure. Other Refinancing Loans These consist of loans to refinance:oConstruction loans. oInstallment land sale contracts, and oLoans assumed by veterans at interest rates higher than for the proposed refinance. Note: These loans are like cash-out refinancing loans except:oThe maximum loan amount is different, ... these loans are not based on 90 percent of reasonable value, and oNo cash is received by the borrower at close. These loans may not exceed the lesser of: The VA reasonable value plus the VA funding fee, or the sum of the outstanding balance of the loan to be refinanced plus allowable closing costs (including the funding fee) and discounts. The cost of energy efficiency improvements can also be added to the loan. Michigan Mutual is a lender who has automatic ability. If you need more information, please contact me at 816-739-6279. You can also find more information and/or apply at www.mimutual.info/sdeere.

May 5th 2015
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#136 ranked lender in Florida - 796 contributions

Sara covered pretty much everything...

May 6th 2015
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Cody Bellah (cody@communitymortgagekc.com)
#2 ranked lender in Missouri - 76 contributions

Yes Sara pretty much summed it up.

May 6th 2015
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Ron Pippin (RonPippin)
#26 ranked lender in Utah - 158 contributions

Nice Sara!

May 6th 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

The term "Poor Credit" is very ambiguous.. For this reason, lenders use credit scoring models to determine acceptable credit profiles.. without knowing your credit scores, it's impossible to say what would or wouldn't work.. if you have VA benefits available to you, then VA allows for cash out refinancing up to 100% of your homes equity.. but understand that VA does not have a minimum score requirement, but also understand that VA does not lend money.. they only insure loans against default.. The lenders, or those with the $$$ will oftentimes have their own guidelines called "Overlay's".. it's these overlays that will vary from one lender to the next.. some banks want 660 or above, while others might go down to 600.. both scores are in the "Low" or "Poor" range, but they are acceptable assuming you meet all other eligibility requirements.. but for your scenario.. you need to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

May 6th 2015
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John Schweer (johnschweer)
#11 ranked lender in Missouri - 163 contributions

Sara was very thorough unfortunately also not accurate, while it may be what her company states as fact it is not. What she has stated is her company overlays, ie a added level of rules required for approval by that investor. VA simply has very loose set of rules which can allow for up to 100% and no minimum credit score. What VA does is guarantee the lender at 25% insurance policy of sorts against loss. The lenders put whats called overlays on top of thr VA minimum requirements. There are banks that will go down to 500 fico and a 100% loan to value I am a Veteran and have specalized in VA lending since 1998, if you'd like help & education feel free to reach out Id be happy to help you in any way I can.V/rJohn

May 6th 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,240 contributions

Poor credit is the challenge, depending how poor it is. That makes a loan to you seem like more of a risk. Over 620 credit score makes it easier but is not a guarantee depending on how much cash you need. Pick a good lender and they can give you guidance or refer you someplace to help get your situation to where you can qualify.

May 7th 2015
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