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Old 07-08-2010, 02:43 PM
 
2 posts, read 53,468 times
Reputation: 12

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My boyfriend and I are getting ready to re-locate to FL to go to school. I just got out of the Marines in March and he gets in out in Sept. I currently have a full time job, and of course he is still on Active Duty. We are going to relocate to FL to go to school, once we are there, he will have his regular military pay until the end of September. I was told that with our current situation we qualify, but since we are relocating and the income is changing AFTER we have already purchased, then we no longer qualify.
We are trying to buy a small condo, nothing crazy, but we will be using the GI Bill's monthly stipend as our primary source of income. We have been told that this doesn't count as income even though it is monthly. We will both have part time jobs as well, but we were told those will not be sufficient either.
So we will have more than enough to cover a mortgage, but we are having trouble finding a lender that will count our stipend as income. Can anyone help me out with this? Does anyone know of a lender that will count the stipend? I have also been told that as long as we can get a lender that counts the stipend as income, the VA will be okay with it as well.
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Old 07-08-2010, 07:19 PM
 
Location: Laguna Niguel, CA
768 posts, read 4,218,885 times
Reputation: 457
Unfortunately educational benefits, such as a GI Bill, cannot be used as qualifying income with any loan program I am aware of (VA, FHA, conventional). VA does not allow it to be either, read:

http://www.warms.vba.va.gov/admin26/...m26_7/ch04.doc (MS Word document)

Do not include temporary income items such as VA educational allowances and unemployment compensation in effective income.

How long have you and him been on your part-time jobs for? 2 years is what is required when it is part-time or second job employment, sometimes 1 year can qualify for an exceptionally strong borrower.

For service members who are within 12 months of release from active duty or end of contract term there are additional requirements when trying to qualify. Either:

1. Documentation that the service member has already reenlisted or extended his/her period of active duty to a date beyond the 12 month period following the projected closing of the loan

or

2. Verification of a valid offer of local civilian employment following the release from active duty.

or

3. A statement from the service member that he/she intends to reenlist or extend his/her period of active duty to a date beyond the 12 month period

PLUS

- A statement from the service member’s commanding officer confirming that the service member is eligible to reenlist or extend his/her active duty as indicated AND the commanding officer has no reason to believe that such reenlistment or extension of active duty will not be granted

OR

4. Some really good compensating factors, such as a 10% or more down payment, significant cash reserves available after closing, and evidence of strong ties to the community in addition to the nonmilitary spouse's income which is so high that only minimal income from the active duty service member is needed to qualify.
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Old 07-09-2010, 05:35 AM
 
2 posts, read 53,468 times
Reputation: 12
We went through a broker here, to see what we qualify for, and if we weren't moving, I qualify for $150k all by myself. Another option we were looking at, is since he is getting out, he will start school in August, so he will have to be down there. My current job has 3 locations right in that area, they just don't have any openings. So if he and I were to both be on the loan, and he would occupy the residence immediately, can I stay here and work at my current job until I can get a transfer, or do we both have to occupy the residence immediately?
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Old 07-09-2010, 11:53 AM
 
Location: Laguna Niguel, CA
768 posts, read 4,218,885 times
Reputation: 457
With a VA loan the law on occupancy either requires the Veteran to certify that he or she intends to personally occupy the property as his or her home, or the spouse can satisfy. As of the date of certification, the veteran must intend, upon completion of the loan and acquisition of the dwelling, to personally move into the property and use it as his or her home within a reasonable time (within 60 days of the loan closing). Occupancy (or intention to occupy) by the spouse satisfies the occupancy requirement for a veteran who is on active duty and cannot personally occupy the dwelling within a reasonable time; that is, a veteran assigned to an overseas or other remote duty station. Occupancy by the spouse may also satisfy the requirement if the veteran cannot personally occupy the dwelling within a reasonable time because of distant employment other than military service (cost of maintaining separate living arrangements is considered).

If your plan is to move down there by way of transfer, I'd contact the VA Regional Loan Center that covers the state you are buying in and ask if your situation would be OK with them, try to get something in writing. Then when you are applying for the mortgage be sure to have that sent in to be reviewed by underwriting along with all of your other documents. Each lender has their own requirements, but something in writing from the VA will definitely help your case to be able to purchase, have your spouse occupy the home, while you are still working where you are now. You should also get something in writing from your employer stating the likelihood of being able to transfer once a similar position opens up.
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Old 06-17-2011, 12:15 PM
 
21 posts, read 74,212 times
Reputation: 17
Quote:
Originally Posted by alana1984 View Post
My boyfriend and I are getting ready to re-locate to FL to go to school. I just got out of the Marines in March and he gets in out in Sept. I currently have a full time job, and of course he is still on Active Duty. We are going to relocate to FL to go to school, once we are there, he will have his regular military pay until the end of September. I was told that with our current situation we qualify, but since we are relocating and the income is changing AFTER we have already purchased, then we no longer qualify.
We are trying to buy a small condo, nothing crazy, but we will be using the GI Bill's monthly stipend as our primary source of income. We have been told that this doesn't count as income even though it is monthly. We will both have part time jobs as well, but we were told those will not be sufficient either.
So we will have more than enough to cover a mortgage, but we are having trouble finding a lender that will count our stipend as income. Can anyone help me out with this? Does anyone know of a lender that will count the stipend? I have also been told that as long as we can get a lender that counts the stipend as income, the VA will be okay with it as well.
I've been having the same trouble for almost 9 months now. How does 1950/mo. NOT get counted as income if it goes to my bank account?

I'll be using that money toward HOUSING because it's a HOUSING ALLOWANCE and I'd rather put it toward a mortgage of roughly the same amount (I could get 180K with $30K down + my 1,200/mo. job) instead of rent. So if I'm bringing in 3K a month what's the problem? Especially if one assumes that I'll be making the same or more once I'm done school.

I'm seriously considering writing my congressman. I've done everything by the book including saving 50%+ of my income every month since the age of 15. BY THE Moderator cut: language BOOK. I could buy a home in MD in cash (almost but would still need a loan of around 20-50K) but I don't want to destroy my investments. But the alternative is to keep paying rent and I'd really love a home to call my own.

Last edited by Green Irish Eyes; 06-17-2011 at 03:31 PM.. Reason: Please use appropriate language
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Old 12-02-2011, 08:10 PM
 
1 posts, read 25,339 times
Reputation: 10
Any new updates on this situation. Just running into this for the first time and I am in the same boat as the first story on here. My girlfriend and I are leaving active duty Air Force this month and moving from CA to FL to both attend school. We both start while we are on terminal leave so there is no break in pay. The BAH in the area is $1650 and we will both get that plus we will be in the reserves so thats another $350 each a month for that. So even with out part time jobs yet income added in we will be pulling in $4000 a month. I was preapproved for a loan and have been getting houses setup for months now. I finally had an offer go through and get signed. I was going to close on it 2 days after I got down there and a week before starting school I thought it was going to be perfect, I was wrong. After getting in dept now with my lender them and I both together are finding out I cant use my BAH from the GI bill as income. I am in shock right now and am thinking there has to be a solution to this problem but everywhere I am searching online now looks to be the same.
How in the world can my girlfriend and I with no car payments or bills to our names and $15k in the bank cant get approved on a house for our situation. This is messed up its a HOUSING ALLOWANCE! why can I not count it on a loan application as income toward a housing payment. I am for sure going to try to get in contact with someone who can help.
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Old 11-25-2012, 02:11 PM
 
1 posts, read 23,127 times
Reputation: 10
I fully agree with the posters in this forum. I am now running into the same issue. I have a 4.00 GPA, I am in my second semester and I am trying to buy a house in the town that my college is in (which is what the bah rate is based on btw). My wife has a full time job and I have a part time job, but the lion share of our money comes from BAH and school money. It is ridiculous that my 1146/month bah cant be used. The VA gives you that only if you are a full time student under the assumption that a full workload would hinder your ability to get a job so they help you with housing costs, great idea, until you find you cant use it to buy a house. You can use it if you are active duty,however, so whats the difference? Btw, unless you are a pro athlete, in the military, or a high level exec, you employment is at will, meaning you can quit or be fired at any time. But you can use your job as income, so whats the difference. Why give me a housing allowance if I cant use it to house myself?
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Old 11-25-2012, 09:05 PM
 
Location: MID ATLANTIC
8,403 posts, read 21,585,589 times
Reputation: 9899
Quote:
Originally Posted by HostyleMP View Post
I fully agree with the posters in this forum. I am now running into the same issue. I have a 4.00 GPA, I am in my second semester and I am trying to buy a house in the town that my college is in (which is what the bah rate is based on btw). My wife has a full time job and I have a part time job, but the lion share of our money comes from BAH and school money. It is ridiculous that my 1146/month bah cant be used. The VA gives you that only if you are a full time student under the assumption that a full workload would hinder your ability to get a job so they help you with housing costs, great idea, until you find you cant use it to buy a house. You can use it if you are active duty,however, so whats the difference? Btw, unless you are a pro athlete, in the military, or a high level exec, you employment is at will, meaning you can quit or be fired at any time. But you can use your job as income, so whats the difference. Why give me a housing allowance if I cant use it to house myself?
All income must pass the smell test of continuance. It's not like a college degree is guarantees future employment, far from it, ask any college grad beating the streets now - and this includes some of our top colleges in the country. Sure, almost all jobs are at will, but the known curtailment is a risk the lender won't take, nor will the VA. Short term benefits, at best (and not by all lenders), can be used to offset monthly debts that are 10 to 24 months out. There's a huge difference between short term benefits and separation from service.
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Old 05-17-2013, 01:03 PM
 
12 posts, read 39,715 times
Reputation: 10
Hi, did anyone figure out anymore information on this topic? I live in Chicago and my husband is a disabled vet who can use the VA loan. His income is based off of the VA disability and the GI Bill housing and I am a full time pre-med student who also does temporary work as much as possible. I don't even consider this real money since it goes right into paying for school debt. We are looking into buying a condo, since no matter what were paying over $1000 a month in this city, we figure we ought to own a place to call home. However, I am confused how this is all suppose to work? Is the housing eligible as an income? Child support can be factored so I certainly do not see how the GI Bill wouldn't be. I've talked to quite a few realtors and no one has an answer. All I got is this forum. If anyone has any information for disabled vets and housing loans please let me know. I do not know how were going to buy a condo or house here if the basis for his income through the VA is not enough to afford a place here. Thanks for any help!
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Old 05-18-2013, 10:16 PM
 
Location: MID ATLANTIC
8,403 posts, read 21,585,589 times
Reputation: 9899
The GI Bill is not long term income, unfortunately. And just because he's going to school, does not mean he will, 1) graduate, 2) find a job in his field upon graduation.

His disability would most definitely count, and child support may be included, but only if the child's age permits 3 more years.

Have you contacted the VA to see what other benefits are available?
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