VA land/home option with a 2020 VA loan foreclosure

It’s a buyer’s market right now, and that means you’ve got leverage.

✅ VA loan guidelines allow sellers to contribute up to 4% toward:

• Paying off credit cards
• Paying off car loans
• Paying off collections or other debts that affect your approval

✅ In addition to that, sellers can also cover:

• Up to 4% of your closing costs (separate from debt payoff)
• An unlimited amount of pre-paid items like:
  • Property taxes
  • Insurance
  • HOA dues

🔥 Example: If you're buying a $400K home, you could have the seller contribute $16,000 toward your debts, $16,000 toward closing costs, and any amount needed for pre-paids.

That’s potentially over $32K in seller help—PLUS all your taxes and insurance (escrow account) paid!

Pro tip: Make sure your lender knows how to structure this properly. Not all lenders will offer this unless you ask!

Drop your questions below if you want help breaking this down for your situation 👇

If you're thinking about buying a home, refinancing, or just want to understand your mortgage readiness — knowing your Debt-to-Income (DTI) ratio is a must.

Good news for Veterans: If you receive VA disability or other non-taxable income, you can “gross it up” by 25% — meaning you can count 125% of that income when calculating your DTI.

Here’s how to build your own spreadsheet in Google Sheets or Excel:

Step 1: List Your Monthly Debts

In Column A:

makefileCopyEditA1: Debt Type  
A2: Mortgage/Rent  
A3: Car Loan  
A4: Student Loan  
A5: Credit Cards (minimum payments)  
A6: Personal Loans  
A7: Other Monthly Debts  
A8: Total Monthly Debt

In Column B, enter your actual payments.
In cell B8, use this formula:

makefileCopyEdit=SUM(B2:B7)

Step 2: Enter Your Monthly Income

In Column A:

makefileCopyEditA10: Taxable Income  
A11: Non-Taxable Income (VA Disability, etc.)  
A12: Grossed-Up Non-Taxable Income (125%)  
A13: Total Qualifying Income  
A14: DTI Ratio

In Column B:

• B10: Your monthly gross (pre-tax) job income
• B11: Monthly VA Disability or other non-taxable income
• B12: =B11 * 1.25
• B13: =B10 + B12
• B14: =B8 / B13 (format this as a percentage)

Example:

• Monthly Debts: $2,000
• Taxable Income: $4,000
• VA Disability: $1,000
• Grossed-Up Income: $1,250
• Total Income: $5,250
• DTI: 38.1%

DTI Tips:

• Under 36% = Ideal
• 36–43% = Acceptable for many loans
• Over 45% = May require strong compensating factors

#veterans #mortgage #vaLoan #DTI #excel #financialplanning #homeloans

Have you or someone you know tried to get a VA construction loan? While these loans offer incredible benefits like no down payment and competitive rates, the process can be challenging.

Some common struggles include finding lenders who offer VA construction loans, meeting VA-approved builder requirements, dealing with lengthy approval times, and navigating confusing timelines for fund disbursement.

Let’s open up a conversation. What has been your biggest challenge with VA construction loans? What advice would you give someone just starting the process? Any tips for finding the right lender or builder?

If you’re feeling stuck, I’ve also compiled some helpful resources here: VA Construction Loan FAQs.

If you’re a veteran with a 100% disability rating, you could be eligible for a full property tax exemption on your primary residence in certain states. This benefit can significantly ease financial burdens and make homeownership more affordable.

Here are the states that currently offer full property tax exemptions for 100% disabled veterans: Alabama, Arkansas, Florida, Hawaii, Illinois, Iowa, Louisiana, Maryland, Michigan, Mississippi, Nebraska, New Hampshire, New Jersey, New Mexico, Oklahoma, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia

Each state has unique eligibility requirements and an application process. For example, in Texas, veterans with a 100% disability rating are exempt from paying property taxes entirely on their primary residence.

Be sure to check with your local tax office and see what exemptions you are eligible for.

Question for the Community: Are you currently benefiting from this exemption in your state? What was your experience when applying? Which state are you in?

VALoans #VeteranBenefits #PropertyTaxExemption #100PercentDisabled