No Money Down OR & CA

Since today is Veteran’s Day, I thought I would do a short post about VA Guaranteed Mortgage Loans. We have all heard about the Golden Rule as we were growing up, “Do unto others as you would have them do unto you.” However, when talking about mortgage lending, this time specifically VA Guaranteed Mortgage Loans, the Golden Rule is, “He with the gold makes the rules.”

VA Does Not Make Loans

First of all, let me explain again that VA does not make loans to home buyers, they guarantee a portion of the loan. The loan is made by a “wholesale” lender and often sold to a servicer, sometimes more than once. Sometimes the loan is sold to an investor and the servicing is sold to another “bank.” In all of this VA is the guarantor of a portion of the loan.

Overlays Developed by Lender

That means that the “bank” making the investment in the loan can make their own rules, as long as they are not less stringent than those laid out by VA. These are called “overlays.” This is why that although VA does not require a minimum credit score, many lenders will require a minimum credit score of 620 or 640 or even 660 before they will fund a loan. This is why that although VA does not require an appraisal on a “streamline” or IRRRL refinance, many lenders do.

Overlays Vary Company to Company

These “overlays” can vary widely from company to company. That is one of the reasons that I believe it is best to work with a mortgage loan officer that has some leeway in where they place the loan. If the loan officer can only place the loan with their company, you are stuck with that company’s “overlays.” That is why I think that working with a company like mine, a mortgage bank with the ability to broker to other wholesale lenders, is the best of all worlds. 

Call a Vet for your VA Loan

Call me today at 541-342-7576/541-221-3455 cell or e-mail me for more information. I am a Vietnam era veteran and here to help other veterans. So today, take a moment to thank a Vet, it won’t cost you and it will make them feel more appreciated.