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What exactly do they mean when they say "guaranteed"? I inquired about buying a home a few months ago, and I was told "NO"! to using my VA loan. No body even wants to try, no bank will see me, no realtor will meet with me. The reason: I work commission only sales and have less than 2 years at my current job. My annual income is very high, but nobody will help me. I have been out of the Air Force and settled for two years now, but have worked three jobs since then. I doubt I will be at this job for a full two years, I am starting my own business (which will be commission sales) starting this coming spring. I was told that because I will be "self employed" AND paying myself commission, I will have to wait an additional FIVE YEARS to qualify for my VA loan!!!!!! Can anyone help or shed some light?
VA Loan
Sales
Posted >1 y ago
Responses: 6
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Guaranteed doesn't mean they guarantee you'll get it, it means they're guaranteeing that if you default, they will cover the bank's loss. Qualifying, because of that is often harder than with conventional loans.
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SGT Richard H. nailed it. it's not the VA Guaranteed Loan, it's the VA Loan Guarantee program. You must still qualify for the loan from the lender (bank or mortgage company), the VA 'Guarantees' a portion of the loan to them (thus reducing, but not eliminating their risk).
It's a good program if you are unable to provide a down payment, but if you are able to pay a down payment, you may be ahead with traditional financing.
It's a good program if you are unable to provide a down payment, but if you are able to pay a down payment, you may be ahead with traditional financing.
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Yeah when you don't have a salary job they require i believe it is 2 years of taxe filing to show you make enough. My wife keeps talking about us buying a house once my apprenticeship is up. But that wont happen because i wont have 2 years of tax filings showing i can afford a house.
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TSgt Joshua Copeland
I get that, but what exactly does the VA guarantee then?? If I don't stay at the same job for over 2 years, but make $70k a year anyways why do they care?
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PO2 Corey Ferretti
Well when i went for it the first time it "guarantee" you a loan for the amount you prequalify for with out a down payment.
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CW5 Edward "Tate" Jones Jr.
To points here. 1: Your LES (Leave and Earnings statement) documents your income. Your enlistment contract guarantees that you will be gainfully employed for a specified period. These items should qualify you in lieu of two years of TAX Statements. I've had 3 VA loans over the years and never been asked for my TAX Records while on active duty. 2: All Mortgages require a Mortgage Insurance Policy to guarantee that the lender will get paid if the borrower defaults. In the case of a VA loan that Insurance Premium is paid by the government. For a civilian, the Mortgage Insurance Premium is added to the mortgage payment and ultimately increase the monthly payment.
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