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Wife and I are considering moving out of state and I have a great job opportunity lined up.
We would prefer to buy rather than rent. We hate dealing with finding a rental, landlords, security deposit (many landlord nickel dime you), not being allowed to have pets, etc. Additionally we hate the idea of moving twice within a short time frame. We want whatever town our child starts school in to be the place she goes 1st grade through 12th.
That being said IF we rented it gives us approximately 1 year to rent and then we have to find a home to buy in a different town if we want to start first grade in the school system we intend her to be in until graduation. But frankly we don't want to live somewhere for a year, then move. We'd rather move once and be settled there for the next 12+ years. From what we can see with rentals available we will not be happy with what we can rent. Assuming we plan to rent for a year and then buy would it affect our ability to purchase a home if I had only been at my job for 1 year and we recently moved within the last 12 months?
Ideally we want to make the day trip to the new state (where job will be located). We would do this once I have the new job offer. We could stay with my wife's extended family and work with a realtor to find a home. It would be tough considering we would realistically only have 1 weekend to find a home but we are being practical and realizing we will have to compromise in order to buy in this new state. Here are my concerns with this, and I am wondering if anyone could please offer opinions:
I have been with my current employer for 10 months. I have been in the same field for my entire career. Will this affect my ability to qualify for a mortgage? Will lenders be leery of lending to me because I haven't been at my job for 1 year yet?
I would like to use the VA loan because it would save me from paying PMI and we are not obligated to put any money down. Does anyone know if the VA is going to take issue with me living in one state and buying in another?
Will the VA want to see the offer letter from my new employer? Or does it not matter at this stage? As long as I am gainfully employed now then that's all that matters?
Is it true the VA is very strict when it comes to buying a home? We are realistically going to need to buy a home that is a fixer upper. Is that going to be an issue? We aren't talking total tear down type home but perhaps one that needs a roof replaced within the next 5 years or small projects that need updating. I have read conflicting things. Some people have stated they bought foreclosures through the VA loan but if that is the case then I cannot see them being that strict as foreclosures are typically in need of repairs or have sat vacant so potential problems are rather high... But then I have read the VA won't let you buy a home if there is chipped paint on the siding. What is the truth? For those with experience using the VA, can you buy a fixer upper?
One main reason I would like to buy now is that I feel I could qualify for a better rate now seeing as I won't have had 2 job changes (current job been at 10 months, plus the new job I'll be at for about a year by the time we could buy if we did a 1 year lease with an apartment). Is it true that changing your address and jobs will affect ability to get a VA loan?
I called a couple mortgage brokers. One said he had no experience with VA loans. The other said he wouldn't answer my questions until he ran my credit and got all my info. He came across as pushy and not a good fit, personality wise.
I have extremely good credit (FICO score above 800). Been in the same field for my entire career. Pay credit card off in full each month. No other debts. Cars paid in full, titles in hand. My rental history is that I was in the military so stationed all over the world and then the past 5 years since I was discharged we rented one place for 3 years, found a new rental that seemed like a good opportunity but the neighborhood had crime so we left. It was a month-to-month agreement, thankfully. However we were only there 4 months. Then ever since we have rented from one of my buddies. Always paid on time. No issues with rental history. However we are sick of renting and want to own and if we make this move we want to own once and for all rather than rent and move again.
Wife and I are considering moving out of state and I have a great job opportunity lined up.
We would prefer to buy rather than rent. We hate dealing with finding a rental, landlords, security deposit (many landlord nickel dime you), not being allowed to have pets, etc. Additionally we hate the idea of moving twice within a short time frame. We want whatever town our child starts school in to be the place she goes 1st grade through 12th.
That being said IF we rented it gives us approximately 1 year to rent and then we have to find a home to buy in a different town if we want to start first grade in the school system we intend her to be in until graduation. But frankly we don't want to live somewhere for a year, then move. We'd rather move once and be settled there for the next 12+ years. From what we can see with rentals available we will not be happy with what we can rent. Assuming we plan to rent for a year and then buy would it affect our ability to purchase a home if I had only been at my job for 1 year and we recently moved within the last 12 months? No. You could close on a VA mortgage with the first paystub from a new employer, provided income is sufficient. So 1 year job time is fine.
Ideally we want to make the day trip to the new state (where job will be located). We would do this once I have the new job offer. We could stay with my wife's extended family and work with a realtor to find a home. It would be tough considering we would realistically only have 1 weekend to find a home but we are being practical and realizing we will have to compromise in order to buy in this new state. Here are my concerns with this, and I am wondering if anyone could please offer opinions:
I have been with my current employer for 10 months. I have been in the same field for my entire career. Will this affect my ability to qualify for a mortgage? Will lenders be leery of lending to me because I haven't been at my job for 1 year yet? No, as I mentioned, as long as your income amount is enough (Full time, likely can't use bonus or commission income as there is seemingly not a 2-year history), you are fine. If you are a traditional full-time W2 employee and your income is sufficient (Gross = roughly twice liabilities on credit report + House payment) you're good.
I would like to use the VA loan because it would save me from paying PMI and we are not obligated to put any money down. Does anyone know if the VA is going to take issue with me living in one state and buying in another? For purposes of Relocation, VA would want the offer letter for the new position, and then, prior to close, the first paystub. Some lenders require a full 30 days worth of paystubs. I don't, many also don't. You simply need to assert that you will occupy the home as your primary residence.
Will the VA want to see the offer letter from my new employer? Or does it not matter at this stage? As long as I am gainfully employed now then that's all that matters? Current paystubs, offer letter.
Is it true the VA is very strict when it comes to buying a home? We are realistically going to need to buy a home that is a fixer upper. Is that going to be an issue? We aren't talking total tear down type home but perhaps one that needs a roof replaced within the next 5 years or small projects that need updating. I have read conflicting things. Some people have stated they bought foreclosures through the VA loan but if that is the case then I cannot see them being that strict as foreclosures are typically in need of repairs or have sat vacant so potential problems are rather high... But then I have read the VA won't let you buy a home if there is chipped paint on the siding. What is the truth? For those with experience using the VA, can you buy a fixer upper? Gray area. You could include a new roof with a VA Energy Efficient Mortgage. Think in terms of windows, window seals, A/C, that kind of thing. Scroll down this page to "EEMs for Lenders" video: Targeted Short Videos - Home Loans
One main reason I would like to buy now is that I feel I could qualify for a better rate now seeing as I won't have had 2 job changes (current job been at 10 months, plus the new job I'll be at for about a year by the time we could buy if we did a 1 year lease with an apartment). Is it true that changing your address and jobs will affect ability to get a VA loan? NO. Job and address changes mean nothing. Job time means nothing, as long as your base salary covers everything. Post more about your income so we can hone in.
I called a couple mortgage brokers. One said he had no experience with VA loans. The other said he wouldn't answer my questions until he ran my credit and got all my info. He came across as pushy and not a good fit, personality wise. Both anger me. The second one doesn't belong in the business. Keep posting questions here.
I have extremely good credit (FICO score above 800). Been in the same field for my entire career. Pay credit card off in full each month. No other debts. Cars paid in full, titles in hand. My rental history is that I was in the military so stationed all over the world and then the past 5 years since I was discharged we rented one place for 3 years, found a new rental that seemed like a good opportunity but the neighborhood had crime so we left. It was a month-to-month agreement, thankfully. However we were only there 4 months. Then ever since we have rented from one of my buddies. Always paid on time. No issues with rental history. However we are sick of renting and want to own and if we make this move we want to own once and for all rather than rent and move again.
If not renting from a property management company, lender would likely want a 12-month history of rent payments (check copies) and contact info for landlord. Maybe the lease, probably not.
If not renting from a property management company, lender would likely want a 12-month history of rent payments (check copies) and contact info for landlord. Maybe the lease, probably not.
Excellent information. Thank you. Can I send you a message with more financial information? Not completely comfortable posting on a public forum.
We're currently going through the mortgage process for a VA loan in a different state. My husband is active duty, and I work remotely for a consulting company. He had to provide the mortgage lender his orders to the new base and proof he'll retain the same income, and I had to provide verification from my employer that I can work in a different state/remotely and still retain my same position and salary. So yes, they will inquire about your source of income post move and require you provide proof of employment.
My husband & I are moving out of state. He owns his own business & has for 11 years. He travels throughout the South-Eastern States & want to move to the most central state. Assuming, income, credit score/history is good & house mets VA standards- can he get a VA loan since he is self-employed?
Great advice by Pfhtex. I'd just add the following...
Quote:
Originally Posted by Bruins3445
I would like to use the VA loan because it would save me from paying PMI and we are not obligated to put any money down. Does anyone know if the VA is going to take issue with me living in one state and buying in another? You will need to occupy the new home within 60 days after closing. So as long as you do that, it doesn't matter where you lived before closing. If your job is located in one state and you buy in another, that also is ok as long as the commuting distance is reasonable and realistic, unless you have a job where you can work remotely from anywhere. If that's the case, you'll just need a letter from your employer stating such.
Will the VA want to see the offer letter from my new employer? Or does it not matter at this stage? As long as I am gainfully employed now then that's all that matters? You will need to include your offer letter with your loan package. As part of your loan application package, you will be signing a document that states that to the best of your knowledge your employment is not changing, so if you know it is, it would be fraud to hide it. If you have an offer letter with no contingencies (such as passing a course or a drug test, etc.) that includes your start date and rate of pay, you'll be fine. It is true most lender will only require one paystub but the company I work for doesn't even require that. We will close you with one day on the job. We simply do a VOE (verification of employment) to verify you have indeed started the new job. We do need that first paystub when you get it, but we designate it a trailing document and won't hold up your close waiting for it as sometimes borrowers don't get their first paystub until three weeks after they've started a job!
Is it true the VA is very strict when it comes to buying a home? We are realistically going to need to buy a home that is a fixer upper. Is that going to be an issue? We aren't talking total tear down type home but perhaps one that needs a roof replaced within the next 5 years or small projects that need updating. I have read conflicting things. Some people have stated they bought foreclosures through the VA loan but if that is the case then I cannot see them being that strict as foreclosures are typically in need of repairs or have sat vacant so potential problems are rather high... But then I have read the VA won't let you buy a home if there is chipped paint on the siding. What is the truth? For those with experience using the VA, can you buy a fixer upper? There are minimum standards the house has to meet and peeling/chipping paint is not acceptable as it can lead to wood rot and even structural problems if not addressed. A roof with less than two years of life left is also not acceptable. The house must have all fixtures, running water and a heat source. The VA does not offer any kind of rehab type loan for updating or remodeling, so if you are wanting to buy a true fixer upper and redo the kitchen and bathroom, etc., you might consider an FHA 203k rehab loan, although you would need 3.5% for a down payment. But back to the foreclosure statement and VA loan--just because a house is a foreclosure doesn't mean the seller (usually a bank) won't make the necessary repairs to bring the house up to VA standards. I've closed many VA loans that were foreclosures. Have a home inspection done and have your Realtor negotiate any require repairs with the bank/listing agent.
When it comes time to buy, make sure you call several lenders and find a comfortable fit. The two you spoke to are not worth your time. Ask your Realtor for a referral. He or she likely has a preferred lender, one s/he trusts to get the job done for you. Best of luck on your move and house purchase!
My husband & I are moving out of state. He owns his own business & has for 11 years. He travels throughout the South-Eastern States & want to move to the most central state. Assuming, income, credit score/history is good & house mets VA standards- can he get a VA loan since he is self-employed?
If your husband is a vet and eligible for a VA loan, he most certainly can get a VA loan if he is self-employed, provided he meets income eligibility guidelines. Your loan officer will need your last two Federal tax returns to determine what income can be used. S/he will average the income over the last two years to come up with a figure that will be used for underwriting.
The challenge with self-employed people is that they try to write everything off as an expense so they pay the least amount of taxes. But the flip side is that you can't count income that is written off as an expense when trying to qualify for a mortgage.
I have a self employed borrower right now who, on paper, shows he makes about $10k a year. In reality, he makes about $110k a year but writes off almost everything. He will have to file amended returns and pay the taxes on a higher income for the past two years, or he will have to wait two years and file returns with fewer write-offs, or he will have to continue being a renter the rest of his life.
Self employed people can't have it both ways.
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