Fayetteville, NC · Member since 2016 · 50 posts · 29 votes
I am 9 months away from getting out of the army. I am in the middle of the application process to join the police department. I plan to go to the academy as soon as possible.
I am 2 weeks away from closing. Already payed for the appraisal, inspections, and out of due diligence. I am 1 week away from closing and I get a call saying that I am denied because I am 9 months away from getting out of the army. I can't get va or fha financing due to "continued employment"
Any advice?
Investor · New York, NY · Member since 2016 · 91 posts · 46 votes
10y
You went in for a buy, but you were not pre approved for a mortgage.
You are not a veteran, because you are still on active duty.
Appraisal, inspections, attorney fees, are always out of pocket, regardless of your mtg approval.
You can get a regular loan- depends on how much. You do not have to disclose that you were leaving the army.
You could always have a change of heart and stay in the army- there is no requirement that you stay after you begin your mortgage. Just like there is no requirement for any of use to stay in our current employment. Maybe you'd change your mind because you really want a house for your kids, so you are willing to do another tour.
Spouse may qualify for VA loan, but generally shouldn't have changed his bank loan opportunity, as those are generally filed jointly.
Generally PD application, or rather loan qualification based upon PD application is only after you are sworn in, and not any step before it.
You will have to prove to the bank that you will have continued income to pay off the debt. If not, you can always try the more costly no credit/credit check point option, or pay a larger down payment to satisfy the bank. These are questions you have to negotiate with your loan officer.
Don't forget your own credit union. They will often give loans where a normal bank will not.
Fayetteville, NC · Member since 2016 · 50 posts · 29 votes
10y
@Rick Wang so you actually hinted to the solution of my problem but I would like to clear a few things from your post.
A veteran by definition is someone who has, or is currently serving in the military. So yes I am a veteran
Yes I was pre-approved by multiple lenders. None of which caught the "12 months from ETS" speed bump.
Yes those are out of pocket expenses no matter what. However I wouldn't have had those expenses had I known I would get denied from the start of the process.
No I could not get a regular loan. Its all about "continued employment" and with an ETS date coming up, I still would have gotten denied for any mortgage. They know about the ETS date because it is on my LES (pay stub) so it can't be hidden.
In the end though the solution to the problem was an "Intent" to reenlist. So like you said I would "have a change of heart" and want to stay in. All I had to do today was get a letter from my retention NCO stating I was eligible to reenlist if I chose too, and then sign another letter saying I intended to reenlist. Closing is still set for next Thursday.
Now the legal discussion of "Is a letter of intent legally binding" is open for interpretation. I will just say that as of right now I have multiple options available, ranging from extending for deployment to joining the police department.