When two or more veterans seek a VA loan additional rules and guidelines apply.This video explains the basics. Official VA guidelines state that strengths of one veteran related to income and/or assets may compensate for weaknesses of the other. BUT... satisfactory credit of one veteran cannot compensate for poor credit of the other. When one of the borrowers is NOT a veteran the guidelines are slightly different. In that case the income of the veteran has to be sufficient to repay their portion of the loan. Income strength of the non-veteran spouse cannot compensate for income weakness of the veteran in determining eligibility. Finally, for joint loans where any party besides the veteran and/or their spouse will hold title to the property VA review is required. The VA Lenders Handbook - VA Pamphlet 26-7 - has more details.

If financial circumstances arent working, and you are falling behind on mortgage payments, hoping the lender wont notice isnt a solution. Talking with them about loss mitigation options is better. Lenders may be able to arrange a "workout package" to help get things back on track. Mortgage loans are often "sold"; the lender who is servicing the loan — the lender to whom you send checks — has the financial interest in your situation. Talk with that lender, not the original lender. If Fannie Mae or Freddie Mac — both government-sponsored enterprises involved in mortgage lending — have acquired your loan, there are Federal guidelines that they may apply to your situation. They are not there to deal directly with borrowers (you), but they may be able to work with the lender of record to determine the loss-mitigation guidelines that best fit your situation. Be vigilant about companies that "just want to help". Look out for: Financial counseling agencies with high fees; they may be charging for advice you can get for free. Equity Skimming — companies (or individuals) who offer to repay the mortgage or sell the property if you sign over the deed. And do not sign anything related to your home until you understand it thoroughly.

Mortgage insurance is a policy that covers the lender in the case of loss. For some borrowers, the FHA (Federal Housing Authority) provides mortgage insurance. For other borrowers, a policy from a private mortgage insurer (PMI) may a better option. PMI companies usually have larger down-payment requirements and more-stringent qualification guidelines than the FHA. They may also cover loans that are large than the FHAs limits. Premiums from these lenders are often lower than FHA premiums, though. Most lenders will have guidelines and information about PMI options, for situations where mortgage insurance will be required. Ask your lender if PMI is an option for your situation.

Lenders supply a Loan Estimate form for valid mortgage applications. This form documents these essential elements of the approved loan: Services borrowers CAN shop in relation to the loan Services borrowers CANNOT shop Loan terms Loan costs Project payments Cash and costs required to close the loan A loan summary to aid comparing this estimate to other estimates. Loan Estimate forms also provide details about loan assumption policies, appraisal, insurance, late-payment policies, and refinancing. The Estimate should also disclose whether the lender intends to service the loan directly. All Loan Estimates are not identical. Information that is NOT related to a specific application may be excluded. Careful reading and comparison is always a good practice.

By law, a mortgage loan application is valid when these things are provided to the lender: Loan Amount applied for Estimated Property Value Property Address Borrower Name Borrower ID — preferably Social Security Number Borrow Income Supplying these establishes a legitimate loan application under the Federal TRID guidelines. While submitting these in written form is preferable, providing them in conversation — live, phone call, or video conference — is also valid. You should request a written record of the conversation, of course. Once supplied, these 6 facts start the clock for a lender. Under the TRID guidelines, financial institutions must return a Loan Estimate within 3 business days. (See other videos on Loan Estimate details here.)

Federal guidelines apply to most consumer loans — like mortgages — that are secured by property. Refinancing, vacant-land loans, construction-only loans, closed-end home-equity loans, and of course home mortgages are covered by these guidelines. Reverse mortgages and mobile-home mortgages are regulated separately, and the Federal TRID guidelines and disclosures do not apply in the same way. Guidelines are designed to apply to lenders who make such loans in the ordinary course of business; they do not apply to people or businesses that make 5 (or less than 5) qualifying loans in a given year.