Texas One Mortgage specializes in VA & Texas Vet mortgage loans. VA home loans & Texas Veteran's home loans are designed to provide assistance to veterans, active duty military personnel and surviving spouses of veterans with purchasing a home. Below is a chart comparing there similarities and differences. If you don't find the information you are looking for, please email us your questions for further help. Also, check out our Texas Vet webpage.

Guidelines

You can only purchase a 1 to 4 unit home you intend to live in and take possession of within a 60 days from closing. Single family, 1 unit homes are the most common property purchased with VA loans.

VA Jumbo Loans up to $1,500,000 with a down payment.
New loan limits now allow VA loans up to $1,500,000 with a down payment equal to 25% of the excess over $417,000. Example: Loan amount $517,000, excess equals $100,000, times 25% equals a $25,000 down payment. Additional restrictions may apply. See guidelines for more details.

There are several advantages to purchasing with a VA loan including interest rates that are much better than conventional Zero down loans..

• Assumable - Yes, but the new borrower must qualify for the loan to assume it.
• Bankruptcy or Foreclosure
  

  Chapter 7
  You must wait 2 years from the discharge date.

  Chapter 13
  You must have made all your payments on time for at least 12 months. Permission from the bankruptcy trustee is also required.

  Foreclosure
  You must wait 2 years from the date of the foreclosure.
  If the loan was a VA loan and there was a balance due after the home was sold, you may have limited or no entitlement. A new COE will show this.

  NOTE: After a bankruptcy be sure to check  your credit report for errors  and correct inaccurate information. This can make a big difference in your credit scores and loan approval.

  If you need help repairing your credit, contact us and we will refer you to HTDI Financial, a credit repair agency we work with.

• Buy-downs - Allowed on purchases only, up to a loan amount of $417,000. Not allowed on ARM loans.
• Closing costs - VA limits what closing costs can be paid by the veteran. Classed as the "veteran's unallowable closing costs" these fees, from $1300 to $1500, are normally paid by the seller when purchasing an existing home.
  The Owner's Title Insurance Policy, about 0.8% of the sales price, is also a fee normally paid by the seller when purchasing an existing home.

  When purchasing a new home from a builder the veteran should discuss these items to be sure if the builder will pay these fees, part of these fees or none of these fees. If the builder is not paying these fees, notify us so we can structure your loan properly to pay these fees and still provide you with the lowest interest rate possible.

  Many builders will encourage you to use their own mortgage company and may provide incentives to you if you do, i.e., pay points for you or pay for your Owner's Title Policy. We have found that most of the time we can still save you money and give you a better interest rate, even without the builder's incentives, so it's best to request a Good Faith Estimate from us to compare with the builder's offer. You may be pleasantly surprised.

• Credit Scores - VA does not set credit score limits, but all of our lenders do. Generally, scores below 620 will require a more thorough review of your credit. Scores below 600 will be difficult and may require a manual underwrite, limiting you to a 41% DTI ratio. Scores below 580 are not currently allowed. You will need credit repair to see you your scores can be raised enough to qualify. Credit scores below 661 now require a price adjustment to the rate.
  
  The following adjustments are to the points. As a rule of thumb, 0.50% in points equals about 0.125% in the rate. So if you have to add 0.75% pt. your rate will go up about 0.25%, i.e., 7.0% to 7.25%..
  
  
  • 620 - 660 = add 0.25 pt.
  • 600 - 619 = add 0.50 pt.
  • 580 - 599 = add 1.25 pt.
  • 580 Minimum.
• DTI - Debt to income ratios between 41-44% using manual underwriting (VA guidelines). We only use manual underwriting when we can't get an approval from AU. Using automated underwriting we've approved loans with up to 75% DTI.
• Eligible Property Types - 1-4 unit homes, townhouse, approved Condos and PUDs.
• Energy Efficiency Improvements - May be added to your loan amount up to $3000 if costs are documented.
  Amounts over $3000, up to $6000 may be added, but require the costs to be documented and must show the resulting increase in the monthly P&I payment does not exceed the likely reduction in the monthly utility costs resulting from the energy efficiency improvements. (This must be documented).
• Loan to values up to 100%, plus the VA Funding fee, on loan amounts up to $417,000.
• Loan Types - 15 & 30 year fixed rate loans and 1 yr, 3/1 & 5/1 Hybrid ARM loans are available. Some lenders also offer 10, 20 or 25 year loans, but the pricing isn't as good as the 15 or 30 year loans. Ask us and we can show you how to pay off your loan in a shorter term without using a shorter term loan.
• Maximum Loan Amount - $1,500,000 including the VA Funding Fee, if financed.
• Loans greater than $417,000 require:
  • Down payment equal to 25% of the excess over $417,000. Based on full VA entitlement.
  • VA Funding Fee required, unless exempt.
  • Only available on 30 year fixed rate loans.
  • Loans greater than $700,000 are underwritten on a case by case basis.

• Loans greater than $700,000 also require:
  • No foreclosure or bankruptcy in past seven years
  • No housing payment 30 days or more past due in the last 12 months
  • 620 middle credit scores for purchase or rate/term refinances and 660 for Other Refinances. Loans greater than $1,000,000 require 700 credit scores.
  • Loans greater than $700,000 are underwritten on a case by case basis. Additional restrictions may apply.
  • More Details on VA Jumbo Loans
• Occupancy - You MUST occupy the home you intend to buy. NO investment properties or second homes.
• Residency - 1-4 family primary residences only.
• VA Funding Fee - VA does not require mortgage insurance, but, does require a VA Funding Fee. This is a percentage of the loan amount that can be paid at closing or financed in the loan amount. The VA Funding Fee for veterans is currently 2.15% for 1st use and 3.30% for subsequent use. National Guard & Reservists are 2.40% and 3.30%. (see VA Funding Fee table for more details)
  Veterans with a 10% or greater VA compensable disability rating should be exempt from the VA Funding Fee. VA will verify this on your COE.
• Seller Concessions - Closing costs cannot be financed in the new loan amount. They can be paid by the seller. The cost to the veteran can be as little a $0 to move in.
  1) Negotiate the best price you can, then
  2) increase the sales price the amount of your closing costs and
  3) have the seller use those funds to pay your closing costs for you.
  * The only limit on this is the sales price cannot exceed the appraised value. **We're always glad to help you and your realtor with the proper numbers for all this...

It's real easy to pre-qualify. A Good Faith Estimate will be emailed to you. Just click here to get started.

The VA streamline refinance loan is known as an "Interest Rate Reduction Refinance Loan" or IRRRL. It is the easiest and cheapest way to refinance your existing VA loan if you are the veteran or surviving spouse of the veteran the loan was issued to. Only available to veterans who are refinancing their original VA mortgage and utilizing their original eligibility, the VA streamline refinance loan provides a way for current VA homeowners to lower their interest rate with little of no out-of-pocket costs.

The borrower has the option of rolling the closing costs into the new loan amount or increasing the interest rate to pay for those closing cost. A few guidelines for VA Streamline Refinance Loans are listed below. Please email us or call our office for additional information. Click here for a Good Faith Estimate.

• No appraisal, No credit check, No qualifying debt ratios, No income verification. (Some restrictions - *See below)
• Borrower must be paying off a VA insured mortgage, using their own eligibility.
• No limit is set on the loan to value (LTV) for the new loan.
• Maximum loan amount is $1,500,000.
• 15 & 30 year fixed rate loans and 1 yr, 3/1 & 5/1 ARM loans are available up to $417,000 loans. Loans greater than $700,000 available on 30 year loans only..
• The new interest rate must be at lower rate than the current interest rate on the loan you are refinancing unless you are converting from a VA ARM loan to a fixed rate loan.
• The principal and interest payment on the new loan must be less than the principal and interest payment on the loan being refinanced unless:
    (1) the loan being refinanced is a VA ARM;
    (2) the term of the new loan is shorter than the loan being refinanced; or
    (3) energy efficiency improvements are included in the new loan.
• Borrower may refinance all closing costs, including prepaids and Texas Vet loans.
• Energy efficiency improvements may be included up to $3000 - or up to $6000 if the increase in the monthly payment for the P&I (principal & interest) does not exceed the likely reduction in monthly utility costs resulting from the energy efficiency improvements.
  (This must be documented).
• Up to 1 origination point and 2 discount points may be financed in the new loan amount. We will provide Good Faith Estimates for you to compare if you wish to buy your rate down.
• Late fees may not be financed.
• Mortgage payment must be current. Prior mortgage lates may be ok.
  (Contact our office for more information)
• VA only requires a satisfactory 12 month Mortgage History. No credit check required.
• IRRRL loans can be used for the following types of properties: Primary residence, second homes* & non-owner occupied(rental) properties*.
  * Veteran or spouse must provide evidence he/she lived in the property at one time. Usually a statement from the borrower is acceptable.
• NO need to re-qualify. Income, Assets & Debts are not required unless the monthly payment - PITI (principal, interest, taxes & insurance) will increase by 20% or more on your new loan.

It only takes a few minutes to see how much refinancing your VA loan can save you. Just complete our simple Pre-Qualification form and a Good Faith Estimate will be emailed to you for your review. Don't wait. Interest rates change daily. Take advantage of these low rates while they last.

FAQs

An unmarried surviving spouse is eligible if the veteran died as a result of a service connected disability or while on active duty.
Children are not eligible.

Since Texas is a common law state, the answer is MAYBE.
> If you are engaged and not living together as man and wife, the answer is NO. You must be married. The veteran can purchase in their name only using only their income and debts to qualify.
> If you are living together as man and wife and claim to be married under common law it is possible to get a VA loan. These are dealt with on a case by case basis. Please contact us for additional details.

Yes, but the amount VA will guarantee remains the same - 25% of the loan amount, up to the maximum VA loan amount of $417,000.
** Most lenders are not able to do this type of loan because of system limitations. We do not offer this type of loan.

Purchase Loans
Veteran must certify that they will personally take occupancy within 60 days of closing on the loan.
IRRRL Loans
Veteran must certify that they once occupied the home.
* If you have a home with a VA loan that you now rent, but once lived in, you can refinance with a VA Streamline Refinance Loan (IRRRL). That's a big savings over an investment property loan.

1) When you have sold your previous home and the VA loan is paid in full, or
2) When you have sold your previous home to a veteran who substitutes his/her entitlement for yours, or
3) When you have paid off a VA loan, but still own the property. VA will reinstate your entitlement for this purpose one-time only. After that you must sell your properties that have or had VA financing on to use your entitlement again.

DIVORCED?
1) Your ex-spouse must refinance the home and/or pay off the VA loan, or
2) Your ex-spouse is a veteran who agrees to substitute entitlement for yours.

Private lenders make the loans, however, the VA guarantee protects the lender against loss. The VA guarantees 25% of the loan amount.

Maybe. This depends on how much entitlement you have left for VA to insure the new home.
Example:
Maximum entitlement is $104,250. If your current VA loan used $20,000 of entitlement, you have $84,250 remaining. The maximum loan amount for the new home would be $337,000 with a zero down payment. ($84,250 divided by 0.25)
Or, a down payment would be required so that your available entitlement plus the down payment equals 25% of the sales price or appraised value, whichever is less.