The Mortgage Bankers Association (MBA)
recently hosted a Webinar, “VA Underwriting for Military Veterans
.” On hand to deliver the presentation was Michael Oursler, chief credit officer at NewDay USA. During the Webinar, Ousler highlighted how the active-duty lifestyle can take a toll on military families and their credit. For example:
►A simple problem with an auto-payment for a servicemember who is deployed can ruin several months' payment history.
►Military families who are forced to move due to redeployment can struggle with finding a new job for the spouse and locating a new home that will fit the family's needs.
►For those who are transitioning from active duty to civilian life, it can take a few months to get the civilian life down. So credit can deteriorate during these three-to-six-month periods.
Ousler explained that while FHA is more rigid with its underwriting to offset the greater risk, VA is more flexible in its underwriting. He also pointed out that there is no maximum number of VA loans a veteran can take out as long as enough entitlement is available.
Condominiums are easy to obtain VA approval on—especially if the project is already approved by HUD—according to Ousler. When VA borrowers request that an appraisal be transferred to another lender, the original lender much comply, he explained.