Posts Tagged ‘va loans’

VA loans and Student Loan debt

Thursday, March 23rd, 2017

Student Loan and VA loansTucson, Arizona: Received a phone call from a real estate agent the other day asking me how does the VA look at student loans. Her client’s spouse had quite a bit of student loan debt and they didn’t think they would qualify for a VA loan. So I thought I would take a second to explain how the VA looks at student loan debt.

Student Loan Deferment and VA Loans

First, it the student loan is deferred 12 months or more from the close of escrow date, then the lender does not have to count the debt. But what if it is less then 12 months deferred or there is no payment on the credit report?

Student loan debt can get confusing as each lender and investor will look at it a little differently. The Department of Veteran Affairs recently issued their Student Loan Payment Policy (VA Circular 26-17-02 – Clarification and New Policy for Student Loan Debts & Obligations) and there is some good news for Veteran borrowers with such debt.

Recent Changes to Student Loans using a VA home loan

If a veteran or spouse has a student loan that is in a repayment or is scheduled to begin repaying within 12 months from the date of the VA home loan closing, then the lender must take into consideration what the monthly payment on the loan will be. To calculate, the lender should you this formula: take each student loan at a rate of 5% of the outstanding balance divided by 12 months.

For example: credit report shows a $25,000 student loan that has a deferment less then 12 months from the closing date on the VA loan. There is no payment showing.

$25,000 student loan balance X .05 = $1,250 … divided by 12 months = $104.17 per month is the monthly payment for the debt ratio purposes.

But what if the credit report shows a payment that is higher then the calculation above? The lender must use the payment on the credit report.

So what if the credit report has a student loan payment that is less then the 5% calculation? In this case, the lender can use the lower payment if the borrower can provide a letter from the student loan servicer that actually reflects the loan terms and payment information. This letter cannot not be dated more then 60 days from the VA loan closing date. The borrower can also use an electronic copy from the student loan servicer’s website or a printed statement provided by the student loan servicer. However, this is a lender discretion on what documentation they will accept.

Tucson/S. Arizona: 520-303-5620 Phoenix/N. Arizona: 480-648-1733

If you have any questions on Student loans and using a VA home loan, or other VA loan questions, then please feel free to contact us. And if you like this post, then please share or like… or leave a comment below.

The Joe’s My Lender Team – Arizona’s VA home loan experts! Proudly helping Veterans in Tucson, Phoenix, Scottsdale, Yuma and Sierra Vista, all of Arizona. We are here to help serve you. Tucson and Sierra Vista (520) 303-5620 or Phoenix: (480) 648-1733

Arizona VA Home Loans

Saturday, March 12th, 2016

Arizona’s VA Home Loan Experts!

Tucson, AZ – Thank you for visiting our Arizona VA home loan mortgage page. If you are Active Military or a Veteran living in Tucson, Phoenix, Sierra Vista, Yuma – or anywhere else in Arizona – looking to purchase a home or refinance your current VA loan, or just have questions about VA loans, then you have come to the right place!

Joseph Small and team at Guild Mortgage Company, are very knowledgable with VA home loan financing, professional and use the latest in technology to help serve Arizona’s veterans.  So give Arizona’s VA home loan mortgage experts a call now! (520) 303-5620 or (480) 648-1733 and let’s get started.

The Benefits of Using a VA Home Loan in Arizona

Arizona VA loan FICO Scores

VA Home Loan Features:

Up to 100% financing available

No monthly private mortgage insurance

Seller concessions up to 4% of the reasonable value of the property

Credit scores as low as 600 FICO in Arizona

Must be a veteran, active duty or reserve member to be eligible

Manufactured homes allowed (requires a 620 FICO score)

Non traditional credit

All loans are subject to underwriter final approval, terms and conditions may apply. Subject to change without notice. Always consult an Accountant or Tax Advisor for full eligibility requirements on tax deductions.

Which one of these describes you best?

Arizona VA Home Loans
VA Home Loans
VA home loans in Arizona
VA Manufactured Home Loan
Arizona USDA home loans
VA Loan – Refinance

“Thanks for serving our country….it means the world to us”!


Top 5 Reasons to do business with the Joseph Small

  1. We make our living helping Veterans & Active Military in the Tucson, Phoenix and Sierra Vista area, as well as throughout Arizona… so you get straight talk & honest answers!
  2. Need answers to your many questions about VA mortgages?  …let us clear up all of the myths about purchasing with a VA loan!
  3. What about the rates and terms? We offer competitive VA mortgage rates and great terms – we also offer a variety of other home loan products, so we will find the right program for your needs!
  4. Don’t like being forgotten about or ignored? Our team is always available, get the personal service you deserve!
  5. You earned the right to use your VA benefits! We would be honored to help you….please give us the chance!

So let us hear from you! Remember….it doesn’t cost a penny to talk…so call us right now and we will answer all your questions! Phoenix – (480) 648-1733 Tucson and Sierra Vista: (520) 303-5620  

VA loans Tucson AZ

If you really like the content of this website, then please “Like Us” on Facebook or “Follow US” on Twitter. And remember to tell your friends, family and co-workers about us! We would love to help them our with their home loan needs, too.

Joseph Small and team at Guild Mortgage Company – Arizona VA Home Loan Experts! – are your trusted source for all your VA home loans needs. Proudly serving Tucson, Phoenix, Yuma, Sierra Vista.

Equal Opportunity Lender, We are pledged to the letter and spirit of the United States policy for the achievement of equal housing opportuinty throughout the nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin

The information provided herein has been prepared by a third party company and has been distributed for education purposes only. The positions, strategies or opinions of the author do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction

Purchasing with a VA Mortgage Loan in Tucson Arizona

Friday, September 21st, 2012

By Joseph Small

veteran in front of houseSo you would like to purchase a home in Tucson, Arizona with a VA mortgage loan? VA mortgage loans offer 100% financing to eligible veterans and active military. Unlike other types of home loan financing, VA home loans do not have annual mortgage insurance (MI). Coupled with low mortgage interest rates, you can quickly see the advantages of using a VA mortgage loan for your Tucson home purchase.

VA mortgage loans can be used for the following purposes:

1. To buy an existing home, including a townhouse or condominium unit in a VA-approved development.
2. To build a home.
3. To simultaneously purchase and improve a home.
4. To improve a home by installing energy-related features.
5. To refinance an existing home loan.
6. Cash-out refinance
7. Reduce the interest rate (Interest Rate Reduction Refinance Loan)
8. Hybrid Adjustable Rate Mortgage
9. Adjustable Rate Mortgage (ARM)
10. Convert an adjustable rate mortgage to a fixed rate loan.

What property types are available for VA mortgage financing in Tucson?

VA mortgage loans are an excellent choice for Tucson veterans and active military and can be used for either a purchase of an existing home or for the construction of a new home.

However, we often get asked about purchasing an investment property with a VA mortgage loan. In short, VA mortgage loans are for owner-occupied properties only and cannot be used for an investment or a second home.

Note: All loans subject to underwriter approval; terms and conditions may apply. Subject to change without notice.
Joseph Small and his team at Guild Mortgage Company is your trusted source for all your VA Mortgage Loan needs in Tucson, Sierra Vista, Green Valley and Nogales, Arizona.

Tucson’s VA home loan mortgage experts!

photo of joe's my lender google places page