How to Extend a VA Home Loan to 90 Days

How to Extend a VA Home Loan to 90 Days

If you have a military veteran living in your home and they are eligible for a Veterans Affairs Home Loan, then you should be able to do an extended-term Veterans Home Loan. However, if the borrower lives outside of VA-certified housing and he or she is living off of a fixed income such as disability payments or Social Security, then there are more restrictions on this type of loan.

You should try to find out about the restrictions on the Veterans Home Loan before you apply. The goal is to get the most amount of time possible without having the Veteran become unemployed, so you will want to make sure you understand these restrictions as well.

A. Some lenders may offer a 90-day VHA loan to their Veterans. This means that you can extend the life of the loan by at least 90 days before you need to submit a payment plan. You will have to contact the lender in writing to apply for this extended-term loan.

B. Others may offer a 90-day loan. You will still need to fill out the application, but you can extend the deadline by several months before you actually need to send in the paperwork. Your lender will probably ask you to provide documentation that will show how much income you can receive from a VA plan.

C. Others do not offer extended-term loans to their veterans. You will be required to sign a disclosure agreement that will allow the lender to contact you in the event that you are disabled, unemployed, or a victim of an emergency. This can really complicate things.

If you decide to use an extended-term loan with a lender who does not offer one, you can expect to have to do a lot of the work yourself. One of the main problems that are associated with a VA home loan is a lack of income. You will have to bring in income every week until you get a straight monthly payment.

This can become frustrating because you cannot have a face-to-face meeting with the original lender since you are separated by so many miles. You might find it helpful to hire a third party to look at your finances so that you can fix any mistakes you have made.

D. If you are in and out of work a lot, this can really hurt your ability to pay off the loan on a timely basis. Your extension might work if you make a large lump sum payment every month, but if you are just getting into a new job, you will be unable to afford that.

So, you need to find ways to shorten the time between the time you get the job and the time you start paying off the loan. There are some things you can do.

If you have a boss at the job you are currently working at, you can ask for a raise. This will help you get some extra money and put more money in your pocket every month.

For the new employee, you can look into getting an additional income stream to help supplement your paycheck. If you are currently a stay-at-home parent, you may be able to take advantage of some of those extra tax credits to help you make up for the lost income when you have a job.

F. You could go so far as to apply for a Veterans Home Loan at a bank. Although this might require a smaller down payment, the interest rates will be much lower than what you would have been able to get from a private lender.