VA Loans
- Minimum loan amount $50,000, Maximum loan amount $2,000,000.
- No down payment required up to a loan amount of $726,200 A down payment will be required above
$726,200 there is a formula to determine the down payment requirement it can be up to 25%. - VA Repair and remodel mortgages require a minimum middle credit score of 680. There will be additional costs associated with this mortgage and usually the interest rate is higher. 2 appraisals are required, a minimum of 2 inspections, and a fee for the title company to maintain the escrow fee is an example of the additional expenses.
- Minimum middle credit score 580 a regular stick-built home.
- Minimum credit score to purchase a double wide mobile home is 640. Additional requirements for a mobile home are these.
- A. The foundation installation must meet the FHA guidelines verified by a structural engineer inspection.
- B. The mobile homes value must a minimum of 70% of the total sales price.
- C. If the home is located on a private road there must be a road maintenance agreement.
- Income requirements- The buyer(s) must provide a 2-year history, they buyers can have more than 3 employers in the past 2 years. A gap in employment of more than 60 days usually is not accepted unless there are documented reason(s).
- Hourly or salaried employees if they are starting with a new employer must have been on the job for a minimum of 30 days prior to closing, the only exceptions are if the employee is transferring locations with the same employer, or if the employee has a signed offer letter from the new employer. 30 days consecutive pay stubs and the last 2 years W2’s is required.
- W2 employees that receive more than 20% of their annual income as commissions, or bonuses must supply federal tax returns, and any employment related deductions will be counted against current income.
- If the buyer(s) own more than 20% of a business that files a separate return, the last 2 consecutive returns for the business must be provided, and the federal returns of the individual must be provided.
- Self-employed buyers must have 2 consecutive years of federal tax returns proving the self-employment. A year-to-date profit & loss statement must be provided and if the P & L income is less than the average of the tax returns the lowest income will be used.
- Self-employed buyers with credit score above 740 may be allowed to only supply 1 year of self-employed tax returns, 2-year(s) proof of the business entity is required, the automated underwriting system must indicate that only 1 year tax returns are required.
