Veterans Homebuyers Network
Serving American Veterans

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Your Credit and the VA Home Loan Program

As a qualifying Veteran you have a rare and excellent opportunity to use your VA Home Loan Benefits to become a homeowner. However, there are certain credit guidelines that must be met.

When looking at your credit report the first thing that jumps out is the credit score number. We all know that low is bad and high is good but what comprises this number. The content of your credit report results in your score. Late payments, missed payments, no payments among many other factors which most potential homeowners are not aware of. Bottom line- if you change the content of your credit report that will correlate to a change in your credit score.

When a VA approved Mortgage Banker reviews your credit to determine whether they will pre approve you for a VA loan a variety of factors are taken into account.  Unfortunately, there are many Veterans whose credit will not meet the VA Home Loan guidelines despite the leniency of the criteria.

At this point most Veterans take action to “Fix” “Repair” their credit. This is when they get into trouble. A large majority of these so-called “Credit Repair” companies out there are not educated of the VA Home Loan Credit guidelines. Therefore, how can they be qualified to work on your credit if they have no idea what results they need to achieve? Additionally, credit repair companies operate in a manner of which they charge you an ongoing monthly fee for their services so logically they want to take as long as possible to get you any form of results. While you on the other hand want to buy a home NOW!!

The Veterans Homebuyers Network has been helping Veterans restore their credit for 15 years and as the VA Home Loan specialists we know exactly how your credit needs to be in order for approval of a VA Home Loan.

If you think or feel you have credit issues please contact us at 917-960-4260 as we are your best option to restore your credit to a level where you will meet the VA Home Loan guidelines.

The Veterans Homebuyers Network – leaving no soldier behind

Veterans Homebuyers Network 

 

Veterans – When is the right time to buy a House or Condo?

In my 20 years of working in the Mortgage and Real Estate industries the most ill informed statement I continue to hear is from potential homebuyers is:

 

“Mortgage Rates are Low – It’s a great time to buy a House”

 

Not only is this a misinformed statement – it’s just simply untrue!!! Most often this is an ideology that is perpetuated by the collusion of mortgage and real estate brokers. Since they only make money when you purchase a home.

 

That being said, if you’re buying a home as your primary residence, then there should be one main reason motivating you.  Simply put, it is because you can afford the expense of becoming a homeowner and you can afford your mortgage payments.

 

Contrary to popular belief mortgage rates are probably one of the least important factors to determine if home ownership is right for you. It is unfortunate that a lot of potential homebuyers are believed into thinking that rates are so important. True, we all want to get a competitive rate, however if you are buying a home just because the rates are low you may be headed for trouble.

 

Let’s Look at some Numbers –

 

A $400,000 30 year fixed rate Mortgage at 4% will give you a monthly payment of $1,908

A $400,000 30 year fixed rate Mortgage at 5% will give you a monthly payment of $2,144

 

That’s a difference of $236 a month, of which all of that can be deducted from your taxes. Therefore, at the end of the day, you will be able to get a tax refund of the additional monies spent on your mortgage payment so the slight difference has no actual effect.

 

The primary factor to consider if you are going to buy a home is that you can afford your mortgage payments. Even if you buy a home when the rates are higher you can always refinance your mortgage when the rates go down giving you a lower monthly payment.

 

The more accurate way of assessing mortgage rates is:

 

“Mortgage rates are low – Now is the time to refinance your Mortgage”

 

The Veterans Homebuyers Network – leaving no Soldier Behind

 

 

A Must Read for Veteran’s Considering a Two Family Home for Rental Income

I have come across a great number of Veterans in the NY area would love to buy a two family home so they can live in one unit and rent the other for income to help with their mortgage payment. However, in most but not all cases, the two family home will cost you more than the traditional one family home. Therefore, most Veterans in order to qualify for a VA Mortgage, large enough to buy a two family home, must rely on the potential income that the rental income will generate

 

However, here’s the Problem!  Several years ago the VA Home Loan guidelines were changed; as a result a potential homeowner can no longer use the projected rental income of the rentable units of a two family home to help qualify for a VA Home Loan. The exception is if the homebuyer has been a landlord and has reported rental income on tax returns for a minimum of a one-year period.

 

Since most Veterans wanting to buy a two family home are first time homebuyers this is an impossible guideline to meet. That being said, there is a solution!

 

The FHA program does allow you to use the rental Income without any landlord experience. Therefore, if one was to initially purchase a two family home using a traditional FHA loan and make the mortgage payments on time for the 1st year, while renting out the second unit during this t year you can then file your taxes having included the rental income on your tax return.   

 

You have now been a landlord for the one-year period and can use your VA Home Loan benefits to refinance your FHA Loan into a VA Home Loan as you now meet the Landlord experience guideline. Since the FHA Loan has no prepayment penalty, when you refinance your FHA loan into a VA Loan you will have eliminated the mortgage insurance payment thereby giving you all the advantages of having a VA Home Loan.

 

There are no problems only solutions!

 

The Veterans Homebuyers Network – leaving no soldier behind.

So your Self-employed & want to use your VA Home Loan Benefits – Here’s what you need to know

If you are a Veteran looking to use your VA Home Loan benefits to become a Home Owner and are self-employed you may think that just because your business is growing & the monies are coming in that you will have no problem being approved for a VA Home Loan.   You may say to yourself – “Look at all this money my business is generating. I can afford a mortgage payment” well not so fast …..   See a VA Mortgage is what’s called a Full Document Loan – meaning that you must show proof of income. And how do you do that?  – Simple Paystubs and W2’s   Let’s face it – a lot of you self-employed Veterans have never taken the time to incorporate your company & even if you did do that – How many of you “Pay yourself “a regular Paycheck on the books of your company payroll? Not a lot of you – That’s my guess.   The thing is – without taking those actions – you may not be able to be approved for a VA Mortgage.   The reality is you write off as much income as you can as company expenses so you reduce your tax liabilities – therefore leaving you with very little company profit – therefore leaving you very limited personal income to afford to pay a mortgage with.   So you cannot have it both ways –   If you’re self-employed – you need to incorporate your business – open a business checking account – then put yourself on the company payroll at an income range that will allow you to afford a mortgage. After that you need to file both a corporate & personal tax return & make sure everything you do is above board – on the books & done the right way.   After that, as long as you have 2 years of a track record with your business you will then be a prime candidate for a VA Home Loan.   The Veterans Homebuyers Network – leaving no Soldier Behind    

Veterans – The 4 Myths Preventing You from Becoming a Homeowner

If you are a Veteran looking to use your VA Home Loan benefits to become a Home Owner and are a bit confused about how to go about moving forward you are not alone. Having worked with Veterans for 20 Years and holding hundreds of VA Home Loan seminars, I have identified the 4 myths why Veterans are not using the VA Home Loan Program.

 

  1. Credit Myth: Most Veterans feel that their Credit is not good enough to be approved for a Mortgage.

Truth: With our credit restoration program and affiliated VA Mortgage Banker reviewing your credit we are able fix and restore your credit so it is good to go.

 

  1. Down Payment / Closing Costs Myth:  – Veterans feel that they do not have enough money to take ownership of a house.

Truth: Not only is a VA Loan a no money down program but our partner VA Approved Mortgage Banker has a method of structuring your Mortgage to include ALL of your closing costs.  That being said, taking possession of a new home can be done with very little or no money at all.

 

  1. Monthly Payment Myth: – Veterans feel that the Mortgage payments will be too high.

Truth: In most situations when you factor in your tax savings as a homeowner your mortgage payments will be about the same as a rental payment. Additionally, if you buy a 2-4 family house you can use the rental income of the other units to offset your Mortgage payment often leaving you paying less than you would for a rental.

 

  1. The Process is too Confusing Myth: Veterans feel the process of the who, what and where’s’ of how to begin the process to homeownership is overwhelming.

Truth:  This is where the Veterans Homebuyers Network has earned its reputation. There simply is NO OTHER Company that does what we do for the Veteran Homebuyer. Educating the Veteran on the process of becoming a homeowner is where we excel.

 

Through our VA Home Loan Benefits seminars and our personal consulting not only do we explain the VA Home Loan Program – we also show Veterans the process of becoming a Home Owner.

 

The Veterans Homebuyers Network – we will leave NO soldier behind.

 

Veterans don’t be fooled by the term “Nonprofit Company”

As a Veteran you are exposed to them all the time. They throw themselves in front of you claiming to help and justify their worth as being a Not for Profit company. I am talking about the “Nonprofit” company.

In having worked with Veterans for 20 years I can’t tell you how many times I have seen a company, or service, attempt to illicit a positive response under the guise of being a nonprofit company. There are many great Veteran’s organizations out there that truly help Veterans but there are probably twice as many that simply prey on Veterans & provide no valuable benefits whatsoever. If you have experienced any of these organizations that target Veterans we would like to know so we may help spread the word to our Veteran Client base.

The Veterans Homebuyers Network has established relationships with many great Veterans organizations & services that produce results and make a positive difference in a Veterans life and we pride ourselves on these associations. Although the main focus of the Veterans Homebuyers Network is to work with Veterans looking to use their VA Home Loan benefits to become a homeowner. Our greater mission is to serve and help Veterans.

The Veterans Homebuyers Network – We will leave NO soldier behind

How New 2015 VA Mortgage Limits Affects the NYC Veteran

As of January 1st 2015 the maximum VA Home Loan lending limits in the NYC area & surrounding counties has been lowered to $625,000 from $968,500 with no money down. 

The NYC area’s limits were always higher than the national limit of $417,000 due to the price of Real Estate in the NY area.

In the last 10 years the Mortgage industry as a whole has undergone drastic changes.

Mortgage programs used to read like a menu from a Diner – where you can get anything you were in the mood for, but that menu has shrunk to a few basic choices The VA Mortgage being one of them.

With the elimination of so many Mortgage programs, the VA Mortgage is now more important than ever. For a Veteran, the only other Mortgage program that is normally feasible is the FHA Program where you have to pay Mortgage Insurance for the life of the loan and which can cost you on average an additional $400 a month. In addition to having to come up with a down payment of 3.5% which equals $14,000 for a $400,000 Mortgage.

Now faced with a Lower VA Mortgage Limit – can Veterans still afford to buy a home in the NYC area? Absolutely.

95% of the Veterans we work with are looking to buy a house between $350K – $550K. The inventory of homes are still very plentiful in that price range and a motivated Veteran home buyer can still find a home that fits their needs.

So fear not Veterans, home ownership is still a reality for you, even if you live in the NYC area. 

The Veterans Homebuyers Network as always, is here to help you realize the American Dream of Home Ownership.

Make 2015 the year of home ownership – for more information – please call 917-960-4260.

We will leave NO soldier behind.  

 

Veterans Homebuyers Network and Veterans Realty Network is answering the demand of NYC area Veterans looking to Purchase homes using their VA Home Loan Benefits

The New York metro area finally has a full service real estate brokerage company catering to Veterans. Family owned and operated, founded by two brothers, Joe and Lenny Nedlin, both retired Army commissioned officers, The Veterans Homebuyers Network and the Veterans Realty Network are drawing on 20 years of experience of working with Veterans and the VA Home Loan Program.

Veteran Homebuyers Network

The Veteran Homebuyers Network is solely dedicated to educating, informing and preparing veterans in order to become homeowners. David Nedlin infuses the company with over twenty years of knowledge in the Veteran home loan program, mortgage and credit repair business. Thousands have attended his seminars within New York City as he deftly demonstrates and explains how the home buying process and prepares potential veteran, and non veteran homeowners, how to best prepare themselves to be successful homeowners.

Veterans Realty Network and “Sell to a Veteran Program”

The Veterans Realty Network (VRN) is the brokerage company, which assists Veterans and non-veterans alike in purchasing and selling their homes. Our brokerage company is different in that we are able to obtain exclusive sale listings of Veteran approved homes. Our specially trained agents in veteran real estate policies and procedures are then able to match sellers with Veterans who have already been approved for a VA Mortgage with a local NYC area veteran approved mortgage banker.  All of our clients with the Veterans Realty Network are ready to buy NOW.

The “Sell to a Veteran” program is designed to educate sellers of Real Estate all about the VA Home Loan Program and the ease of closing a loan using the VA mortgage. This allows eligible Veterans to use their VA Home Loan benefits to buy any 1-4 Family house or VA Approved Condo up to $625,000 with No Money Down.  The problem is that many sellers, brokers and attorneys are uninformed in this area and therefore shy away from accepting an offer to purchase from a Veteran using the VA Home Loan Program where the Veteran does not have to put any money down. However, these are the easiest, quickest and safest real estate closings today!

 

For more information please visit VeteransHomebuyersNetwork.com or call 917-960-4260

We will leave NO Veteran behind