okay good morning this is the V lbv a boot camp it is a three hour MCE so we have you till noon you do have a PowerPoint presentation copy of the PowerPoint presentation in your green file so you can follow along we're going to be talking about the VA home loan program and the Texas Veterans Land Board housing assistance program as well this program was created by the department of veterans affairs and the Veterans Land Board here in Houston Houston regional VA office and the whole goal of the class was to retrain your brain so that you have the knowledge and the information that you need to get referrals there are two hundred and twenty-five thousand veterans in harris county alone this county has more veterans or this area has more veterans than any other area in the state of texas it is not the highest volume area for the department of veterans of their home loan program bear County San Antonio where I'm from is the highest volume but the point is there's a lot of potential for growth in this area so we don't want you to have any more fear about referring to the VA home loan program for your your veterans that you are meeting and your goal would be to always ask your customer are you a veteran the VA home loan program is the very best program for our veterans to buy a house why is that because they can borrow up to four hundred and seventeen thousand dollars up to the Freddie Mac conforming loan limit which is 417,000 with no down payment if they have full entitlement so we have anybody that knows a veteran in the audience okay so who's the veteran that you know michelle maher your dad's a veteran and he was in what what branch of the military is in the navy okay what era of service was he in vietnam was he okay what kind of ship was he on do you know well he was on an aircraft here oh my goodness oh wow okay that's cool so your dad was gone quite a bit then ya gone probably more than he was at home and Frank was just telling us his son is in the air force and won all kinds of really neat Oh airmen of the quarter very impressive stuff in working in six days a week 12 hour days so that's something that we have in common with our veterans Angie no veteran your dad and what branch of military air force guy too I'm an Air Force Brett as well so you have a lot in common with your veterans even if you're not a veteran you know that the veteran is sacrificing you know so we're going to be asking your customers are you a veteran just that one question are you a veteran at the answer is yes I know that you don't work you know eight-hour days or were you ever way from your family what branch of the military and tell me about your military service and you will get so many blessings by doing that well I was in heb you have the heb grocery stores here that's my favorite story so I'm in heb and I'm talking to this I've seen this guy that this older gentleman that has a hat on that says tin cans sailor and I walk up to him and say sir I excuse me I don't know what a tin can sailor is he proceeded to tell me and I should know that but I didn't that it sink and sailor is someone that's been on a destroyer okay and he had been on a destroyer during world war two started telling me about being attacked by the Japanese kamikaze pilots and all these interesting story yes is very a big blessing so all you gonna do is say are you a veteran what was your career field tell me about your service and you're going to be you're going to get a big blessing by that so this slide is is I was put in here put in the the presentation many years ago so I don't know what the current statistics are but at the time that class was create about seven years ago only ten percent of the veterans used their VA home loan benefit to buy a house now why would that be why would veterans again I'm sure you've heard that I know my own father used a different use of conventional loan to buy his house so why would a veteran not use their VA home loan benefit if it's the best deal for them like they could only use it hmm that's an excellent excellent one they think they can only use it one time which is not true they can use it multiple times they can even have to VA loans at the same time that's a good one maybe the lender doesn't know the program we've had that experience in this area I had an agent that she actually during the Vietnam War she's on the NASA NASA area clear lake area she went to Fort Sam to Brooke Army Medical Center with her friend because her friend's boyfriend had been wounded he was a wounded warrior he was at Brooke Army Medical Center so she says I'll go to San Antonio with you in the course of the visit she fell in love with the guys roommate this other wounded warrior and she said when she when she got ready to come back to Houston she looking since I'm going to marry you someday and she married this wounded warrior after she took this class she said I can't tell you how many veterans i think i have not helped because my lender told me that the VA program was a very not a good program and it may are really sad and it's just not true you should be able to close alone in the same amount of time a VA loan the same amount of time that you close an FHA or conventional loan a lot of myths and misconceptions too much red tape you know i like to say when there's twenty-somethings in the audience you know they're never used to be an internet and they go what really but they're never used to be an Internet I mean when I first got out of college my first job at a bank we didn't have a fax machine so you know it used to be true that there was too much red tape everything had to be mailed so on so forth the Internet has renovated the way that the VA does business everything's ordered through the VA web portal is it a lot of extra paperwork Michelle to do a VA loan no you just have to know the couple extra pieces of paper that need to be completed appraisals take too long that's not true anymore it they only 10 working days to get the appraisal back to the lender and they're not supposed to accept the appraisal unless they can get it done within that 10 working days that being said if we did have a problem we would be contacting their regional VA office the chief assistant evaluation officer Christopher Roby and saying we have a problem can you help us with this appraiser VA has too many repairs not necessarily the Hat their basic rule is safe sound and sanitary and one of the things you're going to get as a follow-up to this class is a copy of the MPR's minimum property requirements so that if you have a listing and you want to see if the VA appraiser will like this house or will will approve it you will look at the npr's and you'll have an idea of what is required can't be used more than once that's you know that was a great one that you said but it's actually not true once you pay your loan off then your entitlement can be reinstalled you sell your house your entitlements means reinstated so the benefits and my sort of claim to fame is that I work for the Veterans Land Board for 21 years so it means I'm old but it also mean which is obvious but I mean it also means that I you know it's probably no question that you can't ask me that I don't either know the answer to or I will try to get it for you and I like working with real was just telling Frank I really like working with Realtors because the whole mentality is get skip the steel clothes how can we help this person and the in the day at the Veterans Land Board I would always tell the veterans if the lender tells you that the VA home loan program is not the best program for you then you need to call me back I'd love to talk to you you can call me on the weekends I want the name of the loan officer the name of the company I want to know why they said that the VA home loan program is not the best for you because you can borrow up to 4 17 with no down payment what other program is like that in the event that we have someone that doesn't fit in the scenario the automatic underwriting system week and Emmanuel underwrites investors don't really like and Emmanuel underwrite but we we can do them when we really think that the customer warrants that lower fees and minimal closing costs you're going to learn exactly what is allowed as far as charges to the veteran so there's limited fees if i make franks on a conventional loan there's no limit there's a free-for-all whatever i want to charge or whatever the lender wants to charge with the VA loan it's it's minimal closing costs that are allowed competitive to below market interest rates interesting statistics that VA home loan program has less than a two percent default rate and so does the texas veterans housing assistance program which is absolutely huge because i believe FHA is along the line of fourteen percent and this is coming from carl pack two former home loan guarantee officer out of the Houston regional VA office so what does that mean you have a low default rate on your portfolio than investors like that portfolio because they know there's a ninety-eight percent chance that that veterans going to pay their pay their insurance they're not going to have to spend a lot of money trying to get the veteran to pay so a high-performing portfolio that means better interest rate for the veteran default your pending foreclosure assistance that's a big one you can call the toll-free number in the vaca presentation and I guarantee you that somebody will answer the phone the veteran can call and say I lost my job you know so and I don't give out 800 numbers that I haven't already called myself so it's back in the copy of your PowerPoint presentation so how long's it take you to close a VA loan Michelle about 30 days that's the that's the answer now after taking this class you will be a preferred agent with the veterans land where both of you guys will be and I'm going to personally list you on the vlb website so i would like to get a copy of your card and that is not nor normally when the vob teaches there one hour texas fat class they don't have time and it is time consuming but i want you to be listed on the Texas vet website as a preferred agent so that you can get business so if someone says to you um how do I know you're a preferred agent with the Veterans Land Board you could say well go to the VLB website and you can see my name okay so you've got to start referring to yourself as a preferred agent with the Veterans Land Board you put that on your website you can put that on your business cards I'm a preferred agent with the Veterans Land Board you are smarter than the other agents that don't want to take this class and tell me your name i'm sorry i didn't get your Leslie okay so Leslie you are now a preferred agent with the Veterans Land Board what is a VA home loan it's a mortgage that's long that's made to an eligible veteran that's guaranteed by the Department of Veterans Affairs up to twenty-five percent of the Freddie Mac conforming loan limit so in other states that frame at conforming loan limit is different depending on the average sales price San Francisco is around 700,000 la counties in the 600 San Diego County's 528 or around there but in the state of Texas all of our counties all 252 counties are Freddie Mac conforming loan limits for 17 so we don't have to worry about that so the VA is going to guarantee up to twenty-five percent of the Freddie Mac conforming loan limit which would be 104,000 250 when we'll talk about that in a minute so what's the process this is you know Leslie you don't have to remember everything that we say in this class you just have to remember where's my green file where's that where's the car to that lady with a good hair day here on the left-hand side so I never know what my hair is going to look like that's amazing but anyway so you're going to just remember where the people are that can give you the information but on this slide you kind of want to remember how this works you want to find a lender that you like when I do home by our classes another thing I really like to do I always tell my home buyers work with people you like work with a real estate agent you like and then when you find one that you like stick with that person and sign an exclusive buyers agreement with that person it's because that means that that agent is representing you don't just have five or six agents working for you you need to stick with someone you like same thing with the loan officer work with someone that you like number one wit that understands the VA home loan program and one of the things I like work you know and I'll brag on Michelle she won't brag on herself but Michelle I first started as the VA liaison with our company s OVC two and a half years ago and Michelle immediately started working with me and you would you say that you know VA loans I would think that you know VA she's very knowledgeable so you want to work with someone that knows what to do the first thing that she's going to do is get a processor to pull the certificate of eligibility right so I have agents that call me or lenders that come in they want to know what is the veterans entitlement and I tell them you don't know until you go into the VA web portal and pull down the certificate of eligibility and you're also going to prequalify that person and give Leslie a prequal letter so that she can give that to the seller so important in the seller's market to say hey this person has already pre-qualified but the certificate of eligibility is particularly important I had an agent in southlake O's doing a class there and after the class she said the letter just called me and told me that the veteran didn't have enough entitlement I said well how long is they applicate she was mad and I said well how long has the application been at the winters office she's at 30 days unfortunately trust me there's a lot of loan officers that have never done a v8 long before and they don't really want to do it or they don't know how to do that's ridiculous you should be able to get the co e in how long does it take you a matter of minutes yes yes it's very well that's very important and we're going to talk about when we get to the entitlement slide we're going to talk about why that steps 1 2 3 is really important in your business yes mm-hmm based on the buying power and yes absolutely new certificate of eligibility is not like a pre-approval it just says this person is eligible for a VA loan and then I guess in the amounts that the that's a good question Frank the certificate of eligibility is going to show how much entitlement that customer has its well every veteran the gate VA is going to guarantee 25% of the deal for the investor to purchase the loan the VA has to have to guarantee will to guarantee it each veteran has to have so much entitlement and make more sense after we talked about the insight entitlement slide so after we get there co e I mean we have valid point is we have veterans that will tell us I've never had a VA loan before and they probably don't realize that they had a VA loan we pull the certificate of eligibility guess what part of their entitlement is tied up so we're going to hold that thought once we get the coa in the pre-qual then that's when you put them in the car I mean I know you put people in your car and search for houses before they're pre-qualified probably not the best idea but it happens but once you get a contract then we're going to order the appraisal online it's randomly ordered through the VA web portal we don't have control over obviously what who gets it now you can talk to the appraiser as the agent and if you've done a good job on your CMA you want to say you can't say things like this should appraised out you know you but you can say here's my CMA or here's a CMA I know this area i work this area here's why make a case for that value so once we get the appraisal and we're all going to be a issue in an Nov notice of value our Tsar Thunder rider our underwriters will issue a novia if they agree with the value then they're going to reviewing and underwriting the package at the time the loan closes then we obtain the loan guarantee from the VA electronically so as Michelle said it should only take 30 days to process a VA loan it's not a cumbersome process that a lot of people will leave need their customers to believe that it is now this is what the certificate of eligibility looks like I don't suggest you as a real estate professional try to determine the veterans eligibility because there's something called basic entitlement and then there's bonus entitlement and the bonus entitlement is not clearly evident on the co e most people will be using their bonus entitlement so but just for your own informational purposes this is what the certificate of eligibility looks like now we've been at war for 12 years so what that's done is created all these people that we market to all the active duty personnel most cases they're going to qualify for the VA the members of the National Guard and the reserves that's a big one so and I like to focus on that because a lot of people don't understand that forty percent of the fighting force in Iraq and Afghanistan are in the guard of the reserves they did not choose the military as their career so all of a sudden war breaks out there what they thought that we're just going to do one weekend a month in a reserve unit or in a guard unit all of a sudden they're in Afghanistan Iraq case in point one of the jobs we do in San Antonio is we volunteer at the warrior and Family Support Center which is a huge rock house that is it's made to look like someone's home it's a bit of huge and it's where it's right next to the hospital which by the way is the largest medical facility in the United States under one roof Brooke Army Medical Center and then we have a center for intrepid which is state-of-the-art rehab for our wounded warriors and then we have interestingly enough the best burn unit in the entire world think about why would you need a burn unit ok so these young men and women when they have these medical issues in their wounded they come there they their parents or their family members can come to the warrior and Family Support Center and have dinner with them talk to them and get them out of the hospital so one of the jobs we had one day last year was to take these wounded warriors to the 18 t center to see the trans-siberian orchestra so I had two guys in my car and the guy that's sitting in the passenger side he says I'm in the Army National Guard Regular Army don't like us very much and this guy walks with a cane like this would not let me drop him off at the front of the AT&T Center would not let me park in handicap he wanted to walk up to the suite all this and knowing what I know that forty percent of fighting force in Iraq and Afghanistan are in the garter reserves you know I said to him well I don't think the American people really know the difference and we haven't had a major terrorist attack since nine eleven so thank you very much I think you're doing a pretty good job and the guy in the back seat they were in the same guard unit he was from Germany's big six-foot fall five tall german guy and who I was in Germany like three days in the 70s and so I started talking I started talking to him in German like all the words that I knew like be Phil Costa Dawson bit the danke and chilled again the glockenspiel you know just and he was never didn't say anything you know he just SAT back there so he didn't say anything on the way to the AT&T Center he didn't say anything during the trans-siberian orchestra he didn't say anything back on his way back to the base except you made a wrong turn I'm thinking as a mother I failed this young man he's not having fun and that's what this whole why would they go middle-aged lady to the distrans of it to get out of the hospital have fun get back to the base get to warn Family Support Center he comes the passenger side he puts his head down his god bless you ma'am that's not a guy that wasn't appreciative I later found out that he had seven tours in Iraq and Afghanistan think about that did I say seven to her yeah his wife was getting ready to leave him the wounded warriors have a ninety percent divorce rate yes they do so what I'm saying to you and that's very personal I think it's not what I like about doing these classes no one made you come here you want to help veterans you wouldn't even be here right just remember garden reservist used to be in the 70s they were weakened they're not weekend warriors anymore now seven tours would be at least seven years away from your family because when the war's first started sep nine months ors than 12-month tours and 15 month tours it's nothing for a young man or young lady to be gone for the family for 18 months so these people incredibly brave and giving up a lot so just remember garden reserves and you have a flyer that we'll talk about at the less part of the program veterans who serve sufficient time on active duty and discharged other than conditions than dishonorable so maybe the commanding officer gave someone a other than dishonorable maybe they were doing something wrong but they didn't want to give them a dishonorable those are on a case-by-case basis they would as long as they have anything but dishonorable the texas vets okay with it but the VA wants to look at that on a case-by-case basis so we would look at their DD 214 and loan officers can say it what kind of character service did they have we have to see what their character services DD 214 thank you i do this a lot so I forget DD 214 is a discharge that the veteran has if they're active-duty they won't have a discharge they'll have a statement of service but DD 214 deep discharge so you can just tell your customers we need the discharges yes now unmarried surviving spouse we had one where the loan officer called me the young lady's husband killed himself on active duty and I'm thinking suicide I'm not sure she would qualify for the VA home loan program but and that particular one what we had to do was go to Decatur Georgia there but call Decatur Georgia processing center and fill out a form for unmarried surviving spouse unmarried never been remarried of a veteran who died in the line of duty or from a service-connected disability so it was the documentation showed that he was being treated for post-traumatic stress disorder so now and if you read Time magazine you know that one a day of our active-duty military men and women are killing themselves and it's hot it's more for non active duty so you know he just could not get to the end of the road there left her with a little child to take care of so long story short she qualified for the VA home loan program so we got our qualified no funding fee and we'll talk about the funding fee the funding fee is a fee that the VA charges the veteran and it's a one-time fee can be added to the loan amount and above the appraised value and it's put into a pool of money and the VA draws out of that money to pay for the losses so if you have a disability you don't have to pay that funding fee the unmarried surviving spouse of the veteran who died in line a duty from service-connected disability doesn't have to pay the funding fee so and she qualified for a half a percent discount on her rate through the Texas vet because the Texas vet will give that individual half percent discount so her interest rate was like two point six four percent it was just unbelievable how good it was so that was a fun thing to be able to help that young lady Merchant Marines what a Merchant Marines have you seen captain Phillips the new Tom Hanks movie about the Myers gal Alabama that's a good movie by the way it's a really good movie but those individuals that work on the Merchant Marine ships that are moving cargo they qualify for the VA yeah there should be a lot of those in your area that would be I would think that isn't this a big shipping port for Houston area Galveston so just know someone tells you they're a merchant marine then they probably qualify for the VA home loan program and not only have to put a down payment which would be huge public health service who is that when i was living in arizona my dad was an Air Force guy davis-monthan Air Force Base my best friend her dad worked for Public Health Service and what his job was to make sure that all individuals had their immunizations okay important job what if people didn't get their immunizations and disease would break out so those people do qualify and others also may be eligible so you always want to get your loan officer Michelle is going to work very hard to try to find out if they'll qualify and get the answer right away yes no okay how do we get the certificate of eligibility to your question the discharge is a dd-214 the veterans who are no longer in the military have a discharge sometimes they'll have a discharge that does not show their character service so you you can ask them to give us all the copies of their DD 214 s or 214 a member for copy will show their character service active duty they don't have a discharge so we get a statement of service that's signed by the commanding officer so the veteran has to get this and they know they're familiar the commanding officer will be familiar with the statement of service garden reservist many times will have a retirement point summary many times reserves in the guardsmen does not have a copy of the retirement point summary if that is the case don't worry about that just email me I have the numbers for those fort but for those different branches where they can get the retirement point summary not a big deal sometimes you will if you oh you'll have we had one that was an Army Navy in the Air Force you know so they had discharges which is unusual but you will have them where they've had multiple enlistments where they have a four-year enlistment and then they reenlist and they get another one so you have people that go in and out you have someone that's in the garden reserves and then they go into the regular military so a lot of times they'll have more than one so we just want the easiest thing instead of you having to remember the number of the member for just to say give the lender all your dd214 then we fill out the 26 1880 get the veterans sign it and upload it to the veterans information portal the VIP and as Michelle said it will come out instantaneously in most cases sometimes like the veteran that we were discussing before that didn't think he had a VA loan his came out where he had some entitlement that was charged when it says entitlement charge that means they've used that much entitlement for whatever reason in his case it was an outstanding loan that the VA didn't have documentation that that loan had been paid off so we were able to upload the hud-1 and then get his entitlement reinstated on the VA appraisals what you need to know rotating assignments try very hard to give the give the appraiser as much information as you can the biggest problem that we see with VA appraisals probably same thing with other appraisals is that the listing agent wants to cherry-pick comps for their sales so I mean do you ever have any you ever have any buyers or sellers that think their house is worth more than what what it's really worth so the V the VA's myself included you know but the VA's mission just so you understand is to get the value right the VA does not want the VA appraisers to feel pressure from the loan officer for but so if we get if we get our scene in May right you normally we don't have problems they only have 10 working days to get the appraisal done and then we have five days to approve the value and issue a notice of value so as we said that VI is looking safe sound and sanitary I had an agent that said he had a repo in comfort Texas wondered if he could sell that to a veteran under the VA home loan program and so I asked was is that it was a repo that he had you know and I said is the is the property livable know the answer was no so that's not we can't do fixer-uppers on the the VA home loan program it's not an inspection but of course if you have an exclusive agreement with the veteran you're going to be recommending that they pay a nominal option feet period v4 and have it inspected in all cases yes mmhmm yeah now I would you know we saw something I guess would rot yes yes I can say you know of course you're going to get the mpr so minimum property requirements but I can that's a really good question you have broken glass window panes that are correct that got to have that fix hole in the roof gotta have it fixed you've got rotted wood on the siding they're going to want to have that fix your carpets messed up and not so much you know as long as it's not some kind of a hazard and it appraises out you know carpet that's not in good condition is going to affect the praise value but how much probably not that much right yeah so they're not going to make you repaint the inside of the house or yeah if you walk into a house you see would ride you know right away exactly get down on the contract begin with if you know it's gonna be asked for so that I'm just saying you could be a little bit proactive absolutely technically the same items that they would note in if FHA appraisal is the same thing in a VA yeah please that requires HR light so we have to see the termite inspection and there's an area of it I don't remember the number where it says conditions conducive to infestation and that's you can't have it on there so anything marked there has to be remedied ok so common ones that I see is wood rot another common one is soil to would the soil is touching the wood or like the fence it's the wooden fence is touching the structure and that creates an area where it's more likely to get emphasis on wood pile right of offence or an exit yes yes and so those things need to be remedied I had a deal to where the veteran actually went to the house with a shovel move the soil away the realtor was there taking pictures than on the way to the closing I went to the house took pictures again and I had to write a certification that I inspected the repairs for them as well well we have just a sidebar to that because that is an issue our company will allow hold harmless letter so they can sign you know if it's something like a limb touching the roof or something then the veteran can sign a hold harmless yeah good point no I didn't do that okay so now if you have builders that want to register with the VA i can give you the construction evaluation department at the houston regional VA i will not be calling the Houston regional VA on behalf of your builder they need to do that so I can give you the number for that there's three piece of paper deaf to sign now a new and new construction the VA wants a builder to issue a one-year VA warranty or a ten-year protection HUD protection plan most year builders in this area that are should be VA approved but if they're not they want to they can go to the VA and get fruit now for condos this is the website to go to to see if the builders are registered you can just you know you can call Michelle Michelle can go into the site and tell you whether those condos are approved now this is what Michelle did a very good job of talking about on the termite report because it causes a lot of problems termite reports are required period in the story wood destroying reports are required the veteran cannot pay for that for the termite soul I listing agents don't know that a lot of agents don't no that and it's one of the number one problems that the VA finds whenever they audit lenders files they'll see that the veteran paid for the termite and so what we have to do is we have to mean realistically what happens i think is that the veteran goes out during the option period has the property inspected the inspector says oh I'm I can do it with destroying report for you right now veteran innocently writes them a check covering both the inspection in the termite report they have just violated the VA's rule about them not being not being allowed to pay so what we have to do is refund that termite report back to the customer that happens either with a lender credit or the agent can pay it but the buyer can't take the celica bit so it's easier if you have listings to tell your tell your seller look we have 300,000 veterans in this area with the hair has work been I mean with a lot of it's a high-volume area for veterans so if we get a veteran client you have to pay the $85 for the termite report okay and it's got to be current within 60 days so that is just something that might be yeah I had an agent in Fort Worth and one thing about doing these classes is people tell the agents share their stories I had one in in Fort Worth and kind enough to share this story with me she did a really good job of explaining the non allowables to the seller you know there's going to be some not allowed charges here but she didn't know about the term I so got down to closing and the seller had to pay that 85 bucks for the termite and they got mad about it I mean I don't know if you have a clients to get mad if they get charged more you know 80 yeah right right but now you know no surprises and I like what I do because it's giving you that information to so that you don't get caught irritating someone are making someone mad you'll have that information you know most people if they know what's going to what's getting ready to come down they don't you know they're okay with it VA does not have a maximum loan limit we can do loans up to a million dollars we have investors that will purchase loans up to a million dollars to the VA home loan program so I'm saying to you is that be very careful even if you're working with a high end customer you want to make sure that you can you pass that down to Leslie and friends without a down payment


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