I hear you but...

All I had to do was not mention I was retiring. I was asked if my income would change significantly in the next three years. I answered no but then made the mistake of expounding on the answer which was that my retirement plus my new job(s) would be about the same income. We were off to the races after that. If I had just said no and sent them my last two LESs I would have been refinanced inside of a month. They have no visibility on promotion boards or the service member's intent to stay active duty. I could have completed the refi before I retired.

Although I wouldn't be lying by simplifying my answers, the questions they asked wouldn't have prevented me from getting the loan. They never asked if I was changing jobs.

 

Called USAA and got the same negative answer. Also contacted a local lender near the house I am buying and they are still tap dancing to see if they can work within the honest answer. At least PenFed said they will reimburse my expenses so far. I have a fourth company processing the paperwork now and they only asked me about the next 6 months and I don't officially retire for 7. But in the end the rate and product will cost me about an extra 1400 a year.

Just wanted to share my frustration even though I understand why their hands are tied.

 

DADT is probably the best philosophy. Nobody has ever asked me how long I thought I'd be employed.

 

True. Banks are full od idiots that know nothing of finance. It's best to know their rules and come prepared to get your loan. 40% debt payment to income is pretty standard. Don't offer information they don't need.

 

I am a mortgage loan officer, and the majority of my borrowers are pilots both military and commercial.

There are three boxes you have to check when qualifying for a loan; 1) Credit Scores 2) Debt to Income Ratio and 3) Asset verification as needed. Even if you knock it out of the park in one category (i.e. exceptional credit scores or a lot of cash assets), if the 3rd section does not meet minimum requirements, it is tough to obtain an approval.

You mentioned you have job offers for employment starting this summer. Fannie Mae / Freddie Mac underwriting guidelines for Conventional Financing do state you have to produce at least one pay stub to qualify for a Conventional Mortgage.

However, VA will allow you to close with a Signed Offer letter showing your start date, position, and guaranteed wage.

Every bank can have additional underwriting overlays like Pen Fed's 43% debt ratio you mentioned or the requirement for 2 pay stubs. That is not the case with every lender.

Any chance you are looking to obtain a VA loan? Sounds like it could work for your situation.

Let me know if I can be of help! Amy Stuhr Paterson 800-375-8096 x 0190
National Bank of Kansas City

 

This is getting more amusing. I emailed penfed and said my father in law (retired O-6) offered to co-sign and response was "any co-signers must live in the residence"...gave my wife and I a big laugh. We really didn't really intend to do it but I was surprised to get that response. I am conditionally approved by Quicken and local lender is still "researching."

As for VA loans--been there, done that and have little desire to do the drill and pay the fees. Appreciate info and discussion above.

 

VA disability rating come back yet?

 

I bought my current house through NBOKC. Great experience and they worked with me (I'm divorced and pay a substantial child support amount, which is counted as a debt payment). Good luck.

 

Just an FYI...VA rate pricing is significantly better at this time than Conventional pricing. Often I can pay the VA funding fee and all closing costs with a rate that is lower than Conventional. Just depends on the loan value and your credit scores.

As far as hoop jumping to obtain the loan, since the mortgage crisis, all loan programs involve a fairly significant amount of documenation. There isn't the big difference between what's involved for VA vs Conventional anymore.

 

Did some VA checking today and see funding fee is 1.25 for active duty with 10% down plus in most cases a 1% origination fee. Problem still remains that my written job offers don't have date of employment and expected salary. Also seemed like VA arm loans are not that prevalent. The ones I am working with only offer fixed rate quotes on line.

My conditional approval needs a letter from my commander for employment verification and proof of move. Should be able to work that.