All Branch Topic (ABT) Mortgage applications and special pay

[DD214_DOC]

So I am starting to get really irritated about this. My wife and I recently applied for a mortgage to buy our first home. Unfortunately, the bank seems to have a great deal of difficulty understanding how our special pays work and are having trouble including them as a part of my regular income. Has anyone else had similar problems? I don't see why it's so difficult to understand, but I'm not sure how else I can convince them that I will continue to receive them every year. I have explained the breakdown multiple times, sent them my end of year LES, and even offered to send the LES for July and October, which will likely backfire since it shows a lump sum distribution.

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[AFSurgeon]

On the mypay website is the "Personal statement of military compensation," which they started last year specifically for this situation. It includes all the special pays etc. if they still give you a hard time, switch mortgage lenders. Consider USAA

 

[DD214_DOC]

On the mypay website is the "Personal statement of military compensation," which they started last year specifically for this situation. It includes all the special pays etc. if they still give you a hard time, switch mortgage lenders. Consider USAA

Not surprisingly, this document is not accurate and hasn't been updated since March 2015. It's about $35,000 short of what I actually get and doesn't include ASP and ISP (since it hasn't been updated since March).

 

[Homunculus]

in my recent previous mortgage applications (a couple of VA loans) all they wanted was my joint tax return from the previous few years and a report of my estimated yearly salary and outstanding debts. and the 2 VA loans (one was under me, one under my wife) we still own. that plus a credit report is all they should need.

you are likely a low risk mortgage applicant. if they won't play ball just go somewhere else. we had good luck with local banks.

just imagine back when they had "no doc" loans. mind blowing, eh?

good luck

--your friendly neighborhood real estate mogul caveman

 

[DD214_DOC]

in my recent previous mortgage applications (a couple of VA loans) all they wanted was my joint tax return from the previous few years and a report of my estimated yearly salary and outstanding debts. and the 2 VA loans (one was under me, one under my wife) we still own. that plus a credit report is all they should need.

you are likely a low risk mortgage applicant. if they won't play ball just go somewhere else. we had good luck with local banks.

just imagine back when they had "no doc" loans. mind blowing, eh?

good luck

--your friendly neighborhood real estate mogul caveman

Yeah I wish they still did. The problem isn't the overall qualification, it's the DTI without the additional income. They have no problem approving me for a lower amount if the additional pay is excluded, but it's not the price range I want. Also, it's through the bank where my wife works and we get a nice APR discount if we use them. With tax returns, don't they average out the incomes or something like that? I have only been getting the special pays for a year and a half.

 

[Shikima]

Physician loans still exist. Not as common.

 

[backrow]

How much of an APR discount can they give in today's low rates? Is it worth not being able to get the loan amount/house you want?

I'd talk to the loan officer and tell them you will look elsewhere if they aren't able to figure out how your pay works.

 

[DD214_DOC]

It's a 0.75% reduction. I'm giving him until tomorrow afternoon.

 

[IlDestriero]

I recall someone in PSD writing a memo that stated the bonuses that I was eligible to receive. I attached copies of the tables that showed the bonuses and a couple LES showing my monthly pay. That covered it.

 

[TheEarDoc]

Screw that. For 0.75% if you qualify for VA home loan I would call USAA and talk with them. Most likely the difference in getting a VA home loan with no PMI will be much better payment over the life of the loan vs. a conventional loan or FDA loan with a 0.75% interest rate reduction considering how low interest rates currently are.

Just my opinion. This is from a wife who worked as a loan officer for several years in banking.

 

[statusspasmaticus]

Is USAA or NFCU better for mortgages?

 

[Homunculus]

It's a 0.75% reduction. I'm giving him until tomorrow afternoon.

Screw that. For 0.75% if you qualify for VA home loan I would call USAA and talk with them. Most likely the difference in getting a VA home loan with no PMI will be much better payment over the life of the loan vs. a conventional loan or FDA loan with a 0.75% interest rate reduction considering how low interest rates currently are.

Just my opinion. This is from a wife who worked as a loan officer for several years in banking.

we did a couple of VA loans, and I think from a cost standpoint were a better deal. the bigger issue we had was in seller friendly markets (like DC) that viewed the couple of extra steps/costs (termite inspection, VA inspection) associated with the VA program to be a bit of a sandbag in a multiple offer situation. also, we utilized the VA interest rate reduction last summer which was also slick and easy.

Is USAA or NFCU better for mortgages?

in my experience, neither. USAA has let me down 3 times. the first I used a physician loan, the second two VA loans. USAA just doesn't have its **** together it seems like-- plus their rates weren't as competitive as a local bank. my current model is to start with USAA then use them as leverage to get better local offers.

--your friendly neighborhood otherwise satisfied with USAA caveman

 

[DD214_DOC]

This is a VA loan. The reduction is on top of all the VA stuff. So, it's actually worth it to try to stick with it.

 

[Homunculus]

This is a VA loan. The reduction is on top of all the VA stuff. So, it's actually worth it to try to stick with it.

or, once you get it, take this offer and shop around. mwahahaha!!!

--your friendly neighborhood free market caveman

 

[usma05]

I had this problem a year ago when applying for a second mortgage via a physician loan...my debt to income ratio was well within limits with the specialty pays included but not without them. I provided the statement available on mypay outlining what compensation I received and a memo outlining my pay signed by my department head. The mortgage broker was very understanding, but the underwriter was not. She did not accept either document, only looking at my tax returns for the prior years. No amount of discussion would changed her mind. So I changed companies ( to USAA, who I had been trying to avoid) and despite what I heard prior about them it was a fairly painless process with them. One thing the prior mortgage company kept perseverating on was labelling the specialty pay bonuses and requiring at least 2-3 year history on tax returns receiving it (I had two noncontiguous years for one pay and it was my first year for the first other. It seems our pay is a mystery to a lot of mortgage underwriters, especially when it's broken up in yearly pays, part of it is nontaxavle which really increases how much we take home, and when we can't explain to them that a tax return my not accurately reflect income (i.e. deployment greatly reduces taxable income). My answer was USAA...which is not what you want to hear I'm sure but it was a complete 180 from the other guys.

 

[DD214_DOC]

This bank is one of the USAA-type banks so you'd think would know better.

 

[TheEarDoc]

This bank is one of the USAA-type banks so you'd think would know better.

Mortgage brokers and underwriters are like anything else. Some know stuff and many do not. Many are fresh out of training and do not know much. The problem with banking is a lot like healthcare. They give minimal training, say you're trained, and then throw you out on your own without much help. Then when you make a mistake of flounder they can you or demote you. I've seen it happen to my wife and to other friends in banking. Banks are now all about fees and the bottom line. Most treat their staff like crap and their customers just as bad.

 

[statusspasmaticus]

we did a couple of VA loans, and I think from a cost standpoint were a better deal. the bigger issue we had was in seller friendly markets (like DC) that viewed the couple of extra steps/costs (termite inspection, VA inspection) associated with the VA program to be a bit of a sandbag in a multiple offer situation. also, we utilized the VA interest rate reduction last summer which was also slick and easy.



in my experience, neither. USAA has let me down 3 times. the first I used a physician loan, the second two VA loans. USAA just doesn't have its **** together it seems like-- plus their rates weren't as competitive as a local bank. my current model is to start with USAA then use them as leverage to get better local offers.

--your friendly neighborhood otherwise satisfied with USAA caveman

How long ago was that? Seems like the more recent reviews are positive while acknowledging the sketchy past within the reviews. I wonder if they've turned things around.