Dean Rizzi

VA Loan Questions and Answers
April 5, 2009 · · 4 Comments

Can I get a VA loan if I have had a bankruptcy in the last few years?
VA credit standards state that a veteran with a bankruptcy less than 3 years ago would generally not be considered a satisfactory credit risk unless: the veteran or spouse has obtained items on credit since the bankruptcy and has paid the obligations in a satisfactory manner for a continued period; and the bankruptcy was caused by circumstances beyond the control of the borrower, which would have to be verified. A bankruptcy discharged 3 to 5 years ago must be given some consideration in the underwriting of the loan. A bankruptcy discharged more than 5 years ago may be disregarded. These are the minimum standards that mortgage companies must follow when making a VA loan. In 95% of the cases, companies make the decision to approve a loan without VA’s prior approval. Keep in mind that mortgage companies also have money at risk in giving you a VA loan, so they may have stricter credit standards than those mandated by VA. 

How large of a loan can I get? If my guaranty entitlement is $36,000, does this mean I am limited to a $36,000 loan?  Read more

Dean Rizzi

VA loans experience a revival. Why?
December 15, 2008 · · 6 Comments

There has been a surge in VA pre approvals over the past few months.  The main reason for this increase is the availability of ZERO down financing with the VA and the fact that it comes with no monthly mortgage insurance premiums.   It is virtually the only loan product left that will allow no money down.  Below is some information on VA loans.

Advantages of VA Financing

  • No down payment is required for veterans with full entitlement on real estate purchases up to $729,000.
  • Liberal underwriting criteria.
  • Fully assumable.
  • No prepayment penalties.
  • Fixed rates & adjustable rates available.
  • All funds used may be gifted from a relative.  

Read more