I thought the VA loan was guaranteed??

TSgt Joshua Copeland — Sat, 15 Nov 2014 16:31:26 -0500

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?

Response by TSgt Joshua Copeland made Nov 15 at 2014 4:32 PM

TSgt Joshua Copeland — Sat, 15 Nov 2014 16:32:58 -0500

Oh so by the way, Instead of renting a nice house to the tune of $1000-$1500 a month like I have previously, I bought an old mobile home, paid cash, remodeled it...with cash, and now pay $250 a month lot rent at a ghetto trailer park. I have a $7000 trailer with $50,000 worth of vehicles in front of it :(

Response by PO2 Corey Ferretti made Nov 16 at 2014 4:22 PM

PO2 Corey Ferretti — Sun, 16 Nov 2014 16:22:50 -0500

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.

Response by SGT Richard H. made Nov 17 at 2014 4:08 PM

SGT Richard H. — Mon, 17 Nov 2014 16:08:17 -0500

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.

Response by MSG Wade Huffman made Nov 18 at 2014 5:45 PM

MSG Wade Huffman — Tue, 18 Nov 2014 17:45:04 -0500

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.

Response by CW3 Kevin Storm made Oct 21 at 2017 3:08 PM

CW3 Kevin Storm — Sat, 21 Oct 2017 15:08:34 -0400

It means in case you default the VA will cover the loan. Several reasons the VA Loan is hated, the house has to be inspected and meet VA standards, it is a slow process, and may incur expenses on the seller.

Response by Lisa Marie DeWitt made Jan 2 at 2018 1:47 PM

Lisa Marie DeWitt — Tue, 02 Jan 2018 13:47:25 -0500

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