Sometimes you get a deal where everything is wrong, so you line up the pins and then knock them down one-by-one.
The Scenario:
My veteran client was diagnosed with cancer and he wanted to downsize from their big home to a small condo with his wife before he passed on. The best option for them to get the lowest payment was a VA loan.
My veteran client received a pension and social security, but his wife had just transitioned to a 1099’d part-time consultant position (self-employed) for her company as part of her retirement plan.
Although she would earn multiple six figures over the next few years, none of her income was eligible to qualify for a VA loan.
They couldn’t manage a back-to-back transaction with a home sale and then purchase. His health was failing, she was still working, and it was just too much to handle.
Not only did they need to qualify for a home and a condo without her qualifying income, but the condo association was not on the VA approved list.
We got creative:
They had an IRA with about a million dollars in it. We contacted her financial planner and set up structured distributions for $15,000/mo so they’d have qualifying income.
We used the fair market rental rate for his existing home to ignore the PITI on the departing residence to help with his DTI and residual income calculation. They would go on to sell it later, but we needed to ignore that payment in the short term.
He did not have enough VA entitlement to buy with zero down on the new condo, so we provided a HELOC/bridge loan on the departing home so they had enough down payment to use the VA bonus entitlement.
We completed the paperwork and submitted the HOA to the VA for approval EVEN THOUGH we knew it would be rejected due to restrictions on owners leasing out their condos.
As soon as we received the rejection of the HOA from the VA, we applied for a VA condo waiver and received it a few days later.
Start-to-finish, we closed in 35 days for this veteran and his wife so he could rest peacefully knowing she was going to be ok when he passed on.
Why this might matter
Not everyone loves VA loans, but they’re my specialty. If your client is a veteran and needs some special attention, I might be able to help.
Work with me
Do you have a deal that might be approvable but doesn’t fit in the box at your bank or credit union? Reply to this email or call/text me at 616.298.2743 for a same-day answer.
One case study per week showing scenarios we’ve been able to help with