WEBVTT - Cliff Notes: HOW TO BUY A HOUSE USING A VA LOAN 0:00:00.040 --> 0:00:03.600 An illegal alien from Guatemala charged with raping a child 0:00:03.680 --> 0:00:07.480 in Massachusetts. An MS thirteen gang member from Al Salvador 0:00:07.720 --> 0:00:11.840 accused of murdering a Texas man of Venezuelan charged with 0:00:11.920 --> 0:00:15.840 filming and selling child pornography in Michigan. These are just 0:00:15.920 --> 0:00:19.680 some of the heinous migrant criminals caught because of President 0:00:19.720 --> 0:00:23.320 Donald J. Trump's leadership. I'm Christy nom the United States 0:00:23.320 --> 0:00:28.120 Secretary of Homeland Security. Under President Trump, attempted illegal border 0:00:28.160 --> 0:00:31.680 crossings are at the lowest levels ever recorded, and over 0:00:31.760 --> 0:00:34.960 one hundred thousand illegal aliens have been arrested. If you 0:00:35.040 --> 0:00:38.920 are here illegally, your next you will be fined nearly 0:00:39.000 --> 0:00:43.000 one thousand dollars a day, imprisoned, and deported. You will 0:00:43.040 --> 0:00:46.680 never return. But if you register using our CBP home 0:00:46.720 --> 0:00:50.120 app and leave now, you could be allowed to return legally. 0:00:50.479 --> 0:00:55.240 Do what's right. Leave now. Under President Trump, America's laws, 0:00:55.400 --> 0:00:57.400 border and families will. 0:00:57.200 --> 0:01:00.000 Be protected sponsored by the United States Department of Homeland Security. 0:01:00.120 --> 0:01:03.920 So real estate is and will be probably one always 0:01:03.960 --> 0:01:07.399 one of the greatest investment tools out there, especially because 0:01:07.440 --> 0:01:09.840 of the tax benefits that come with it. And you 0:01:09.920 --> 0:01:13.360 have to understand the tax play behind buying that much 0:01:13.400 --> 0:01:16.240 real estate as well. So these people are rich and 0:01:16.280 --> 0:01:19.640 wealthy and they're trying to hedge their taxes and minimize 0:01:19.640 --> 0:01:22.600 it too. So what's the best player real estate, brick 0:01:22.640 --> 0:01:26.920 and mortar. Because of things like depreciation, cost segregation, there's 0:01:26.920 --> 0:01:29.240 a lot of different things that you can do to 0:01:29.440 --> 0:01:32.959 offset your wins. If you got huge capital gains, you 0:01:32.959 --> 0:01:35.440 can put that in ten thirty one changes, buy real 0:01:35.560 --> 0:01:38.840 estate so you defern your taxes down the road. Right. 0:01:39.319 --> 0:01:42.120 Real estate gives you all these plays that the wealthy 0:01:42.319 --> 0:01:47.360 use at scale to continue to grow their wealth. Whereas 0:01:47.560 --> 0:01:51.000 with us in our community, we like to listen to 0:01:51.080 --> 0:01:55.200 everybody else, but instead of following the money. 0:01:55.480 --> 0:02:00.960 My graduates from my school being forced back drops drop. 0:02:01.360 --> 0:02:03.760 Mike, drop back drop. 0:02:14.360 --> 0:02:18.560 All right, guys, welcome back. We got a stranger to 0:02:18.639 --> 0:02:22.679 the program. Stranger somebody that you might not have ever 0:02:22.680 --> 0:02:25.840 seen before, Matthew Garland. 0:02:26.000 --> 0:02:30.040 And at all that's five eight seven and LS snow 0:02:30.919 --> 0:02:33.560 five eight seven zero zero. But it's all good. Yeah. 0:02:33.720 --> 0:02:35.840 The mortgage guy, The mortgage guy. 0:02:35.960 --> 0:02:41.560 Matthew Garland, CEO of the Garland Group. UH, star of 0:02:42.160 --> 0:02:47.519 Ransom Gyms see UH international speaker. 0:02:48.080 --> 0:02:50.360 International speaker. You gotta add that to the resume. 0:02:50.440 --> 0:02:54.440 Of course, damn sure to be having gyms. 0:02:53.720 --> 0:02:56.040 You know, I got a let in my bio now 0:02:56.480 --> 0:02:57.919 international speaker. 0:02:58.160 --> 0:03:01.799 True, Okay, that's a fact. Yeah, real estate experts. So 0:03:01.840 --> 0:03:04.760 obviously you guys are familiar with man if you're familiar 0:03:04.800 --> 0:03:07.679 with Earn your Leisure. He's been on a variety of 0:03:07.760 --> 0:03:11.440 different times, Market, Monday's invest Fest, you name it. He's 0:03:11.440 --> 0:03:15.600 always around providing great insight when it comes to real estate. 0:03:16.280 --> 0:03:20.920 And we did two episodes so far, and you know, 0:03:21.840 --> 0:03:24.080 whenever it is time, I feel like it's time to 0:03:24.080 --> 0:03:27.239 revisit this real estate conversation. So like this at the 0:03:27.280 --> 0:03:29.919 beginning of the year twenty twenty three was a great 0:03:29.960 --> 0:03:34.560 time to have the third trilogy three p. There's so 0:03:34.639 --> 0:03:36.760 much stuff that we haven't talked about before, and there's 0:03:36.800 --> 0:03:39.080 so much stuff that has changed a lot of people. 0:03:39.080 --> 0:03:42.320 Are you know, nervous economic environment that we're in, interest 0:03:42.400 --> 0:03:45.640 rates and recession, different things of that nature. 0:03:45.720 --> 0:03:49.120 So and on a personal level, during this time, we've 0:03:49.160 --> 0:03:52.800 had a relationship of you helping us with our properties. Absolutely, 0:03:52.880 --> 0:03:54.760 So that's even something that we're going to add to 0:03:54.800 --> 0:03:55.560 this conversation too. 0:03:55.600 --> 0:03:57.680 I love it, Yeah, I love it so you know, 0:03:57.720 --> 0:04:01.440 it's back to the blueprint man of education. Heavy gyms 0:04:01.760 --> 0:04:05.480 try to provide as much value as possible and help 0:04:05.560 --> 0:04:06.120 some people out. 0:04:06.160 --> 0:04:06.320 Man. 0:04:06.360 --> 0:04:08.400 So first formal, thanks for coming, appreciate. 0:04:08.000 --> 0:04:11.280 It, love fatus. It's a three P. I appreciate the opportunity. 0:04:11.280 --> 0:04:14.080 As always. It's always good to be back with my guys. 0:04:14.640 --> 0:04:17.080 Let's make it happen. Let's do it. Let's do it. 0:04:17.200 --> 0:04:20.440 So all right, all right, let's not even waste any time. 0:04:20.480 --> 0:04:21.120 Let's get into this. 0:04:21.160 --> 0:04:22.240 I think it was the first time I wore a 0:04:22.279 --> 0:04:23.440 suit on the shop on the show. 0:04:23.560 --> 0:04:26.359 This is the first time you had a red sworst 0:04:26.360 --> 0:04:30.279 shirt on an episode twelve, the Gold episode and your 0:04:30.320 --> 0:04:32.960 second appearance you had I think you might have a 0:04:32.960 --> 0:04:34.240 flannel shirt, had a flannel joint. 0:04:35.000 --> 0:04:35.720 Yeah, and we. 0:04:35.640 --> 0:04:39.400 Had just moved downstairs to kind of shoot, so that 0:04:39.480 --> 0:04:40.280 was that was cool too. 0:04:40.400 --> 0:04:43.960 Yeah, okay, three different flavors, three different episodes. I liked. 0:04:44.000 --> 0:04:45.039 I like the way this is gone. 0:04:46.440 --> 0:04:48.680 Let's talk about something that we never spoke about before, 0:04:48.720 --> 0:04:53.200 which is v a loans copy for veterans. There's a 0:04:53.240 --> 0:04:57.080 lot of veterans that watch us. We actually have an 0:04:57.200 --> 0:05:04.760 Infinity groupment Eyo University for veterans, whether it's Navy, h army, uh, 0:05:05.200 --> 0:05:09.840 you name it, the whole situation. Right, A lot of 0:05:09.839 --> 0:05:13.880 people have served the country and it's benefits with that. 0:05:14.680 --> 0:05:18.520 But and even some alumni. Aristotle is a veteran. Yeah, 0:05:19.680 --> 0:05:22.400 we got a few other veterans, but a lot of 0:05:22.440 --> 0:05:25.400 times that they're not educated on what they actually have. 0:05:26.000 --> 0:05:28.560 The credit credit credit. 0:05:28.800 --> 0:05:32.680 Definitely, what's up with this VA loan situation. First of all, 0:05:32.920 --> 0:05:35.920 thank you guys for your service. We appreciate your sacrifice 0:05:35.920 --> 0:05:37.680 and everything you do for us in our country to 0:05:37.760 --> 0:05:41.039 keep us safe here in America. So I don't want 0:05:41.080 --> 0:05:43.360 that to My father is a veteran also, so it's 0:05:43.440 --> 0:05:45.839 nandad in my heart. If you've been in my studio 0:05:45.920 --> 0:05:48.240 or see me on my content, I have his flag. 0:05:48.640 --> 0:05:50.279 When he passed away, they gave me the flag, so 0:05:50.320 --> 0:05:52.080 I have that kind of like right next to me 0:05:52.720 --> 0:05:55.200 when I shoot all my content. So, first of all, 0:05:55.400 --> 0:05:57.480 shout out to all the veterans. But a VA loan 0:05:57.600 --> 0:06:00.800 is one of probably the best loans that's available out 0:06:00.839 --> 0:06:04.479 there in the marketplace. It's an underutilized product. I don't 0:06:04.480 --> 0:06:06.680 think a lot of people speak about VA loans, and 0:06:06.680 --> 0:06:09.560 that's why I'm happy that we're having this conversation. So 0:06:09.680 --> 0:06:13.560 let's first start off with the credit score requirements. Most 0:06:13.680 --> 0:06:16.040 lenders will have a minimum credit score of a five 0:06:16.080 --> 0:06:19.440 to eighty to qualify for a VA loan. It's one 0:06:19.520 --> 0:06:25.440 hundred percent financing no PMI. PMI is private mortgage insurance. 0:06:25.480 --> 0:06:27.920 So typically when you put down less than twenty percent 0:06:28.040 --> 0:06:30.920 down on a property, you have to pay the PMI, 0:06:31.279 --> 0:06:34.839 which is insurance that's insuring the bank, not you, the 0:06:34.920 --> 0:06:38.120 barwer in case you default on the mortgage, that that 0:06:38.279 --> 0:06:41.520 loan is insured and the bank can basically get their 0:06:41.520 --> 0:06:44.640 money back from the insurance company. Right. So, VA loans 0:06:44.680 --> 0:06:48.359 have no PMI. It does have a fund and fee 0:06:48.839 --> 0:06:51.719 when you do a VA loan, which can be on 0:06:51.839 --> 0:06:55.599 average around two percent just depending on your status. If 0:06:55.600 --> 0:07:00.200 you are one hundred percent disability then disabled veteran, then 0:07:00.200 --> 0:07:02.520 you don't pay a fund and fee, But typically most 0:07:02.880 --> 0:07:04.960 VA loans that we're doing come with around a two 0:07:04.960 --> 0:07:10.600 percent fund and fee which gets financed into the loan. Now, 0:07:10.640 --> 0:07:14.160 with a VA loan, you can purchase a primary residence. 0:07:14.240 --> 0:07:16.280 It's not for investment properties. I just want to be 0:07:16.280 --> 0:07:19.600 clear on that it's for primary residents. You can buy 0:07:19.640 --> 0:07:23.000 condo VA approved. If you could buy condo that is 0:07:23.080 --> 0:07:26.560 VA approved. You could buy one family, two family, three family, 0:07:26.600 --> 0:07:31.040 four family properties. They have to be owner occupied multifamilies. 0:07:31.480 --> 0:07:36.160 The requirement to for VA to live in the property 0:07:36.240 --> 0:07:38.120 is for one year, just like an f h A, 0:07:38.280 --> 0:07:41.520 so you have to live in that property for one year. 0:07:42.080 --> 0:07:43.520 But the main thing, there's a couple of things I 0:07:43.520 --> 0:07:46.280 want to discuss with a VA that's very important. Number 0:07:46.320 --> 0:07:52.560 one is your certificate of eligibility your COOE. So to 0:07:52.640 --> 0:07:56.680 determine how much of a loan that you can get 0:07:56.680 --> 0:07:59.720 from a VA, you have to provide the lender or 0:07:59.760 --> 0:08:03.360 the lender can pull what's called the COE, your certificate 0:08:03.400 --> 0:08:06.120 or eligibility, and it will tell you exactly how much 0:08:06.320 --> 0:08:10.360 entitlement that you have from the VA. To determine what's 0:08:10.400 --> 0:08:14.720 the maximum, the possible maximum loan amount that you can 0:08:14.760 --> 0:08:20.080 get financed for using a VA loan. Now, unlike well, 0:08:20.920 --> 0:08:25.680 VA loans don't have a minimum a maximum loan amount requirement. 0:08:25.840 --> 0:08:28.840 So if you go an FHA loan or a conventional mortgage, 0:08:29.080 --> 0:08:31.920 you have a maximum loan amount. So let's just keep 0:08:31.920 --> 0:08:34.960 in this so in New York, I'll just keep in 0:08:34.960 --> 0:08:38.240 New York so a simple what a one family right now, 0:08:38.280 --> 0:08:40.600 because this is considered a high cost area, you can 0:08:40.640 --> 0:08:45.400 get an FHA or conventional mortgage million dollars on a 0:08:45.440 --> 0:08:48.320 single family property, a four family property, you can go 0:08:48.440 --> 0:08:50.720 up to like two million, a little bit under two 0:08:50.720 --> 0:08:53.680 point one million somewhere around there. So the loan limits 0:08:53.679 --> 0:08:57.400 increased in twenty twenty three, which is great because home 0:08:57.440 --> 0:09:02.199 prices have been appreciated. But with VA loan there's technically 0:09:02.600 --> 0:09:07.720 no minimum or no maximum loan amount for the VA. 0:09:07.880 --> 0:09:11.040 It's all on how much eligibility you have and obviously 0:09:11.120 --> 0:09:13.240 how much you can qualify for with your debt to 0:09:13.320 --> 0:09:15.840 income ratio and your residual income, which I'm gonna go 0:09:15.840 --> 0:09:18.760 into in a bit. So that's another great thing about 0:09:18.760 --> 0:09:20.839 a VA loan. You can buy a single family home 0:09:21.480 --> 0:09:24.559 one point five million dollars and get one hundred percent 0:09:24.640 --> 0:09:27.120 finance and on it with a low interest rate with 0:09:27.240 --> 0:09:27.880 no PMI. 0:09:28.200 --> 0:09:30.080 Let's say you do do that, and you do a 0:09:30.120 --> 0:09:33.600 loan for one point five is there a millionaire tax 0:09:33.640 --> 0:09:35.520 that comes along with that, like. 0:09:35.480 --> 0:09:37.680 A Manchi tax man tax? Right? So in New York, 0:09:37.760 --> 0:09:40.720 if you purchasing a property over a million dollars, you 0:09:40.880 --> 0:09:47.080 have mansion tax, which you guys happily had to pay, right, 0:09:47.480 --> 0:09:50.120 mansion tax anybody but New York. That's common, right, A 0:09:50.400 --> 0:09:53.000 million dollar house in New York is kind of like 0:09:53.080 --> 0:09:55.719 the normal. It's like an everyday house. New York is 0:09:55.840 --> 0:09:58.880 very expensive, but yes, you have to pay a man 0:09:59.000 --> 0:10:02.680 attach other states it varies, you may not have to pay. 0:10:02.679 --> 0:10:04.760 But I would say check which you know, your realtor, 0:10:05.200 --> 0:10:06.839 or your local lend or whoever you work and with, 0:10:07.000 --> 0:10:08.600 to see if you have to pay any type of 0:10:08.600 --> 0:10:09.120 mansion tax. 0:10:09.280 --> 0:10:12.880 Is there like a percentage that the standard mansion tax. 0:10:12.760 --> 0:10:16.320 Is New York is one percent one percent, So a 0:10:16.320 --> 0:10:19.600 million dollar sales price, you're going to pay ten thousand 0:10:19.640 --> 0:10:23.360 dollars or in closing costs on top of all the 0:10:23.400 --> 0:10:27.360 other fees that come with, you know, buying a property. 0:10:27.480 --> 0:10:29.440 So if you're buying over a million dollars, it can 0:10:29.440 --> 0:10:33.080 definitely get more expensive, especially in this state like New York. 0:10:33.559 --> 0:10:35.920 So that's why you have you can't be house rich 0:10:35.960 --> 0:10:38.319 and cash boy. You have to have money when you 0:10:38.360 --> 0:10:41.760 go into that ballpark, right, But with a VA loan again, 0:10:42.000 --> 0:10:43.760 you can go up to a million and a half. 0:10:43.840 --> 0:10:46.199 You can go one point seven million. I've done loans 0:10:46.240 --> 0:10:49.240 myself one three, one four when the loan amounts were 0:10:49.240 --> 0:10:52.400 a lot less for conventional and FHA. So that's a 0:10:52.520 --> 0:10:56.600 huge benefit for that veteran who can qualify for that 0:10:56.600 --> 0:10:59.200 that large of a house. Right, And that's nationwide, so 0:10:59.240 --> 0:11:03.760 it's not not determined on region where you live. If 0:11:03.800 --> 0:11:06.839 you live in Kentucky and your veteran, you can get 0:11:06.840 --> 0:11:10.000 approved for a million dollar loan with the VA if 0:11:10.080 --> 0:11:14.520 you have the eligibility to do so, right, So that's 0:11:14.600 --> 0:11:17.160 number one, right, But the most important thing I want 0:11:17.200 --> 0:11:18.880 to touch on when it comes to a VA loan 0:11:19.320 --> 0:11:22.920 because the most portant ingredient on any loan is the 0:11:22.960 --> 0:11:26.880 debt to income ratio your DTI. Right, But what VA 0:11:28.360 --> 0:11:31.880 you have what's called residual income, and that residual income 0:11:32.640 --> 0:11:36.480 calculates basically, how much money do you have left over 0:11:37.200 --> 0:11:40.600 after all of your expenses? Can the veteran truly afford 0:11:40.679 --> 0:11:44.240 this house? And they taking your household thoughts. Right, So 0:11:44.320 --> 0:11:48.000 let's just say, for example, you have a family of four, 0:11:48.760 --> 0:11:52.360 right the VA, and if you're living in the Northeast, 0:11:52.600 --> 0:11:57.079 they want to see after you're withholding has come out, 0:11:57.080 --> 0:11:59.080 so they're looking at your gross income and they're going 0:11:59.160 --> 0:12:02.800 to mind us out. You're withholdings like your fighter, your 0:12:02.800 --> 0:12:06.040 social Security, all the taxes, you paying, your W two wages. 0:12:06.240 --> 0:12:08.160 Then they're going to take the mortgage payment minus that 0:12:08.200 --> 0:12:10.479 out of it. Then they're going to take your utilities 0:12:10.520 --> 0:12:12.600 on the home right. And if you don't know what 0:12:12.640 --> 0:12:16.840 the utilities are, lenders will use a calculation. It's usually 0:12:17.000 --> 0:12:21.120 the square footage of the home times point one four percent, 0:12:21.600 --> 0:12:23.720 and so if it's a two thousand square foot home 0:12:23.760 --> 0:12:25.720 times point one four percent, that comes into like two 0:12:25.840 --> 0:12:30.760 hundred and eighty dollars. That will guestimate what your utilities are. 0:12:30.800 --> 0:12:35.480 We looking at childcare, we're looking at you know, student loans, 0:12:35.600 --> 0:12:39.880 car loans. Everything goes into this calculation. And then at 0:12:39.880 --> 0:12:42.040 the end of the day, after all of that is spent, 0:12:42.640 --> 0:12:46.840 do you have at least one thousand dollars a month 0:12:47.360 --> 0:12:51.880 left over? And if you do, you qualify right, and 0:12:51.920 --> 0:12:55.960 if you don't, you don't qualify. So, for example, I've 0:12:56.000 --> 0:13:00.560 seen Dell's where you might get an aus aprise, which 0:13:00.600 --> 0:13:04.440 is the automated underwriting system that all lenders use that says, okay, 0:13:04.480 --> 0:13:08.880 your DTI is X, it works, But then you might 0:13:08.920 --> 0:13:13.960 not meet the residual income qualifications, and that can decline 0:13:13.960 --> 0:13:17.880 your loan. So it's very important that veterans understand it, 0:13:18.200 --> 0:13:21.640 and anyone, any real estate professional, any loan officer who's 0:13:22.000 --> 0:13:25.680 working with VA clients, they understand the residual income calculation 0:13:26.120 --> 0:13:28.960 because that right there can make or break your deal. 0:13:29.120 --> 0:13:31.960 So what I try to advise any veteran or anybody 0:13:31.960 --> 0:13:34.480 who's looking to buy a house, you not only just 0:13:34.520 --> 0:13:36.280 want to get pre approved, you want to make sure 0:13:36.320 --> 0:13:38.440 that the lender that you're working with has the ability 0:13:38.480 --> 0:13:40.760 to submit your loan into underwriting. Why you're in that 0:13:40.800 --> 0:13:44.520 pre approval status so that way an underwriter can reveal 0:13:44.559 --> 0:13:47.000 your loan and get you what's called a pre underwriting 0:13:47.080 --> 0:13:50.440 commitment or loan commitment while you're still in that home 0:13:50.480 --> 0:13:53.240 buying stage. Because now you know it's been reviewed by 0:13:53.280 --> 0:13:57.640 an underwriter. You know your commitment letter is legit. It's 0:13:57.640 --> 0:14:00.679 not just some loan officer sending your life and saying, hey, 0:14:00.720 --> 0:14:02.440 your pray approval for X, Y and Z. Go out 0:14:02.480 --> 0:14:03.680 in the house shop. And then when you get a 0:14:03.679 --> 0:14:05.440 house and then you get in the contract, you do 0:14:05.520 --> 0:14:08.760 all these dispections, pay for appraisal, and then you go 0:14:08.880 --> 0:14:10.800 to underwrite and you get the climb because they didn't 0:14:10.840 --> 0:14:13.240 do the calculations properly from the very beginning. It happens 0:14:13.280 --> 0:14:17.559 all the time, so that residual income is extremely important 0:14:17.840 --> 0:14:21.200 when it comes to VA loans for all veterans out there, 0:14:21.200 --> 0:14:23.920 for all professionals who are originating these loans. And that's 0:14:23.920 --> 0:14:27.480 a lengthy process. Yeah, a lot. It's a lot of information, 0:14:27.520 --> 0:14:29.120 a lot, a lot of tape, a lot of work 0:14:29.160 --> 0:14:30.000 that has to be fouled. 0:14:30.520 --> 0:14:32.920 You can correct me if I'm wrong, But VA loans 0:14:33.040 --> 0:14:35.280 and one of the reasons that people use it and 0:14:35.320 --> 0:14:38.960 it's a great loan product, is that there's no down payment. 0:14:39.360 --> 0:14:44.160 Correct, it's one hundred percent financing for a VA loan. Now, 0:14:44.200 --> 0:14:47.920 typically with a VA loan, it's if you are buying 0:14:47.920 --> 0:14:50.120 the house and you're the veteran, you can get up 0:14:50.120 --> 0:14:53.560 one hundred percent finance. And another thing also, you can 0:14:53.680 --> 0:14:56.000 use the VA loan more than once, so it's not 0:14:56.120 --> 0:14:59.640 like FAHA where you have to refinance out of the 0:14:59.720 --> 0:15:02.920 FA to use the FAH loan. Again, right, with a 0:15:03.040 --> 0:15:06.440 VA loan, if you have enough eligibility on your COOE, 0:15:07.120 --> 0:15:09.320 you can buy another property. It just has to be 0:15:09.360 --> 0:15:12.560 your primary residence. Now on that second property that you purchase, 0:15:13.200 --> 0:15:15.160 you're not you're probably going to have to put some 0:15:15.200 --> 0:15:18.240 sort of down payment because you use a lot of 0:15:18.240 --> 0:15:21.120 your entitlement already to buy your first home. But necessarily 0:15:21.160 --> 0:15:24.560 you don't have to refinance out of that initial property 0:15:24.560 --> 0:15:27.240 that you purchase to use your VA loan again. So 0:15:27.280 --> 0:15:29.400 it gives you the ability. I've seen people that have 0:15:29.520 --> 0:15:33.160 three or four VA loans all still active because they 0:15:33.200 --> 0:15:36.520 didn't burn up their eligibility by going out and buying 0:15:36.520 --> 0:15:39.400 a million dollar million one point five million dollar house 0:15:39.720 --> 0:15:42.440 the first go around. They probably bought a two three 0:15:42.520 --> 0:15:45.920 hundred thousand dollars house, started slow and work their way up, 0:15:46.040 --> 0:15:48.360 and they still have had enough eligibility to use their 0:15:48.480 --> 0:15:50.280 VA over and over and over. 0:15:50.640 --> 0:15:53.240 A loan is they give you a certain amount of 0:15:53.240 --> 0:15:54.520 money correctly. 0:15:56.040 --> 0:15:59.360 Depending on your status of how you got discharged. 0:15:59.040 --> 0:16:00.360 Depending on how long you work. 0:16:01.960 --> 0:16:02.360 Exactly. 0:16:02.440 --> 0:16:05.240 So it's like you might have a million dollars. 0:16:05.200 --> 0:16:07.760 It's not that it's like and I'm not even going 0:16:07.800 --> 0:16:09.600 to try to get into that. Go get the home 0:16:09.640 --> 0:16:12.239 Boys Blueprint. It's a part of E Y L University 0:16:12.480 --> 0:16:15.120 Volume one. We kind of break all the rest. Great 0:16:15.160 --> 0:16:17.280 resource you know, it's a great resource that kind of 0:16:17.320 --> 0:16:21.880 breaks down the calculations and everything like that. But essentially, yes, 0:16:22.200 --> 0:16:25.200 the certificate eligibility will tell Linda, if this is your 0:16:25.200 --> 0:16:28.240 first time using it, if you have used it multiple times, 0:16:28.440 --> 0:16:31.240 how much of your eligibility is available, and then there's 0:16:31.280 --> 0:16:33.480 a whole calculation that we have to do on our 0:16:33.560 --> 0:16:36.600 and to determine exactly how much of a loan that 0:16:36.640 --> 0:16:39.040 we can get you approved for. So it's a process 0:16:39.280 --> 0:16:39.960 on our end. 0:16:40.000 --> 0:16:41.760 If you have one, then you obviously you get the 0:16:41.760 --> 0:16:45.720 additional properties. Are they looked at as investment properties because 0:16:45.720 --> 0:16:46.920 I know you said you can't use as rental. 0:16:47.000 --> 0:16:49.400 It's a primary residence, all of them, all four of them. 0:16:49.640 --> 0:16:51.760 So when you buy the first one, you can rent 0:16:51.880 --> 0:16:54.720 out after you meet your one year required and you 0:16:54.720 --> 0:16:57.000 can go buy a new primary residence and now turn 0:16:57.080 --> 0:17:01.720 that first property into a rental. So it's essentially your 0:17:01.720 --> 0:17:04.960 house hacking, but you're just doing it the not quote 0:17:05.000 --> 0:17:09.359 unquote non traditional way, and you're using the VA loan. Again, 0:17:09.480 --> 0:17:11.200 even if you have to put down a down payment 0:17:11.440 --> 0:17:14.000 five percent, you have no PMI, you're going to have 0:17:14.000 --> 0:17:16.800 a low interest rate, right, So it's still a huge 0:17:16.840 --> 0:17:22.359 benefit for someone who's looking to use as much of 0:17:22.400 --> 0:17:24.880 the VA as possible, because look, they earned the benefits, 0:17:25.160 --> 0:17:27.640 why not use it, use it as many times as 0:17:27.640 --> 0:17:29.440 you can. So some people might start off with the 0:17:29.480 --> 0:17:31.560 start at home two hundred, two hundred and fifty thousand, 0:17:31.640 --> 0:17:34.360 whatever it is, and if they understand how to run 0:17:34.440 --> 0:17:37.760 the play, they'll continue to use their VA, move out 0:17:37.760 --> 0:17:40.080 of one, living it for a year, move out another one, 0:17:40.160 --> 0:17:42.639 and keep going to keep going. So if you do 0:17:42.680 --> 0:17:45.040 it the right way, you can you can buy a 0:17:45.080 --> 0:17:48.400 couple of properties using your VA loan and having all 0:17:48.440 --> 0:17:52.240 those VA loans still open, not having a refinance out 0:17:52.240 --> 0:17:52.919 of them. 0:17:53.480 --> 0:17:55.800 All right, Well, that's good to know a lot of 0:17:55.800 --> 0:17:58.000 information when it comes to the VA loan situation. 0:17:58.320 --> 0:18:00.240 So let's talk about how I'm gonna cut you off. 0:18:00.840 --> 0:18:04.119 I said that in your voice too, don't mean to 0:18:04.160 --> 0:18:07.840 cut right. So let's be since I've said house hack, 0:18:07.880 --> 0:18:09.840 and I want to talk about multifamilies real quick because 0:18:09.880 --> 0:18:10.800 this is very important. 0:18:10.880 --> 0:18:13.080 Before that, don't mean to come you off. I mean, 0:18:13.440 --> 0:18:16.240 I don't want to interrupt your wisdom. But like that one, 0:18:17.040 --> 0:18:18.119 are there disadvantages? 0:18:18.400 --> 0:18:18.560 Right? 0:18:18.600 --> 0:18:21.320 So those are some of the advantager And I know 0:18:21.920 --> 0:18:25.359 people have said like, does every lender off of VA loans? Like, 0:18:25.600 --> 0:18:28.159 are there things that we did if they're veterans that 0:18:28.160 --> 0:18:29.800 they should look out for good question. 0:18:30.000 --> 0:18:34.800 So not all lenders and loan officers are built the same. 0:18:34.960 --> 0:18:37.680 Just because someone offers a loan product doesn't mean they 0:18:37.840 --> 0:18:40.800 know how to close that loan product. Doesn't mean they're 0:18:40.800 --> 0:18:44.200 well versed in that loan product. So for the majority, yes, 0:18:44.560 --> 0:18:47.880 all lenders will offer a VA loan. And I want 0:18:47.880 --> 0:18:50.439 people to understand this right, there's a lot of lenders 0:18:50.480 --> 0:18:54.520 out there that will have the name, their name of 0:18:54.600 --> 0:18:59.639 their company. It will sound military issue. That doesn't mean 0:19:00.160 --> 0:19:03.320 the VA is endorsing them. So a lot of people 0:19:03.320 --> 0:19:06.120 will go to these lenders because it sounds like it's 0:19:06.200 --> 0:19:09.720 military and it's a military mortgage company or something like 0:19:09.760 --> 0:19:13.280 that that is VA endorsed, and it's not. The VA 0:19:13.400 --> 0:19:17.560 doesn't endorse one particular lender over another. That's just a 0:19:17.600 --> 0:19:21.160 marketing tactic. And you have to be careful, especially your veterans, 0:19:21.200 --> 0:19:24.280 because a lot of times these companies are offering you 0:19:24.400 --> 0:19:28.400 higher fees and higher rates than someone like myself or 0:19:28.440 --> 0:19:31.080 a mortgage broker, a mortgage banker, So you got to 0:19:31.119 --> 0:19:34.840 be They may not have military slang in their company name, 0:19:36.080 --> 0:19:38.000 but doesn't mean they can't get you a better deal. 0:19:38.040 --> 0:19:40.160 So I want people to understand when you when you're 0:19:40.200 --> 0:19:43.240 shopping for who's going to do your VA loan, don't 0:19:43.280 --> 0:19:46.080 just go with the company or the mortgage company just 0:19:46.160 --> 0:19:50.000 because they have some sort of military affiliation in their name, 0:19:50.000 --> 0:19:52.760 because it's all a marketing tactic, right. So that's number 0:19:52.760 --> 0:19:56.760 one when it comes to people offering V loans. But again, 0:19:56.960 --> 0:19:59.639 not all in is a built the same. Not everybody 0:19:59.720 --> 0:20:02.560 unders stands VIA loans. These are easy loans if you 0:20:02.640 --> 0:20:06.639 understand what you're doing, but they can become very difficult 0:20:06.920 --> 0:20:09.480 if you don't. And again, the residual income is one 0:20:09.480 --> 0:20:12.240 of the big things that I see people mess up 0:20:12.280 --> 0:20:14.360 on because they never heard of it before and they 0:20:14.359 --> 0:20:17.639 don't know how to calculate it. But for multifamilies on 0:20:17.720 --> 0:20:20.640 house hacking, you can't. If you're a first time home 0:20:20.680 --> 0:20:24.080 buyer and you're buying a multi family property and you're 0:20:24.200 --> 0:20:28.480 looking to use the rental income to qualify, Unfortunately, the 0:20:28.600 --> 0:20:31.920 VA doesn't allow that you have. In order to use 0:20:32.200 --> 0:20:35.600 rental income to help you qualify for a multifamily using 0:20:35.600 --> 0:20:38.640 a VA loan, you have to document that you have 0:20:39.520 --> 0:20:44.120 at least twelve months experience of property management or owning 0:20:44.240 --> 0:20:46.960 a multi family property. So if you don't work in 0:20:47.000 --> 0:20:50.800 the property management field, if you don't have a multifamily 0:20:50.800 --> 0:20:53.840 currently and it's filed on your taxes and we can 0:20:53.880 --> 0:20:55.640 see that you've owned it for a year and you're 0:20:55.680 --> 0:20:59.080 collecting rent, then unfortunately, you will not be able to 0:20:59.200 --> 0:21:02.159 use the rental income to qualify you. Now, if you 0:21:02.240 --> 0:21:05.199 do have that experience, then the VA will require at 0:21:05.280 --> 0:21:08.440 least six months of reserves off your mortgage payments. So 0:21:08.440 --> 0:21:10.560 if your mortgage payment is one thousand dollars a month, 0:21:10.600 --> 0:21:12.919 we're going to require at least six thousand dollars in 0:21:13.000 --> 0:21:15.760 your bank account post closing, after you pay your closing 0:21:15.800 --> 0:21:20.080 costs left over. So I want people to understand using 0:21:20.080 --> 0:21:24.760 a VA loan to house hack and buy multifamilies, if 0:21:24.800 --> 0:21:28.560