Not usual home buying situation.

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momentoftruth87

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Let's just say compensation is $3300/Month.

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Okay.

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$5090/Month tax free being a Full time student. I also will be claiming unemployment for a year as I transition out.

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Which is temporary income and that eventually you'll make less than that and more towards the previous Number.

As an aside, no lender is going to approve a loan-size based on income that isn't permanent. Which means the $5,090 isn't realistic.

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Currently I'm a Staff Sergeant, E-6 making roughly $5000/Month.

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Currently it seems like you make great money but you also mentioned you're transitioning out and-again-you'll be making less. Again, no lender is going to lend you money based on your current income with the knowledge you will have that income reduced soon.

Just not gonna happen.

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When calling and submitting my current information to VA lenders as active duty I get approved for a $270k loan.

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Because you're saying you make $5,000/year and a $270K loan would be about $1240/month before taxes and insurance, which is about 37% of your take-home pay which is fairly tolerable with your VA guarantee.

This is normal.

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But... the second I say I'm getting medically retired and going to be a full time student and what my financial plan is (above) they decline the loan.

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Because you'll take a significant pay cut which brings your debt-to-income (DTI) ratio into an out-of-whack range for the approval of the $270K loan amount.

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They told me if I had a job guarantee that an underwriter would approve a loan.

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Because even at minimum wage you would probably be within DTI ratio tolerances. It's close evidently.

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Why will they give me a loan based on a job guarantee letter?

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They won't give you a loan based on that. They'll give you a loan based on your income of $3300 (approx) and whatever your salary amount is for that job that the letter is proof that you have.

Loans are based on collateral and the ability to repay. in this case, having another source of income would help the ability to repay, meaning you could perhaps obtain the home value you want as collateral ($270K).

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Should I try a regular bank with a first time home buyers loan?

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It's going to depend on your income. How much you make-in total-will be on one side of the ledger. On the other, all of your revolving (IE-credit card), auto, motor/boat/RV/etc type debt will be added up. If the ratio of what you make versus what you spend on your bills + your potential house note is within a tolerable level for their Underwriting purposes, then you'll be approved if everything else is equal.

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Any banks I should try or any advice I should try doing?

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I think you should try to find out more about the job guarantee letter. That means you'll actually have to work there in order to be able to afford the loan in their view. That's not just something you can type up or print out off of Legal Zoom.

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You have a family? Is renting a 1 BR apartment for a couple of years and stockpiling all of your money an option?

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I do have a family. I have a wife that is going to be a student as well and 2 kids. I will probably move in with my father in law, my wife's mother passed away 6 months ago and it would be rent free, but not what I'm wanting as a 28 year old with a family.

We applied through USAA, great rates and they're the ones that preapproved for 270. Got the denial from them. Just trying to figure out how to make a underwriter understand that I'm good to pay the loan.

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momentoftruth87

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I'm going to call back and ask about it. The loophole I was going to use is a "Job Letter" from my father which is the Sheriff in the county I'm moving back to lol

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No offense but this is called mortgage fraud. Intentional factual misrepresentation of documentation used to qualify for a home mortgage. It's not right. Beyond that, these rules aren't a game. These regulations were in place long before the run-up to the financial crisis, the mortgage meltdown, Frank-Dodd, etc.

A $270K home loan financing 100% Loan-To-Value (Or financing the entire amount of $270K) at 3.65 percent (which is very close to the best you can get right now) would put you at around $1,240/month on a 30 year loan.

This does not include property taxes and homeowner's insurance, much less any mortgage-insurance (MI/PMI) you may have to pay.

Let's conservatively indicate that you'll pay about $170-200/month in insurance and taxes (I pay about $150 or so and Louisiana has ridiculously low tax rates and I pay less than $1,000/year for Homeowners currently), and you're up close to $1500/month.

For your house note, that ends up being over 45% of your Debt-To-Income (or DTI) Ratio based on $3300/month income from your service-related disability. That's dangerous...almost reckless. Way more home than you can afford on just that amount of money. Especially if its fixed and there's no opportunity for overtime, etc.

If you have any issues whatsoever financially, you only have 55% of your income available to you to address emergencies or problems.

You've still got to buy groceries, pay for utilities, transportation, clothing, etc etc.

No offense but you're biting off way more than you can chew and you should look at buying a home with a lower price. Flat out.

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We applied through USAA, great rates and they're the ones that preapproved for 270. Got the denial from them. Just trying to figure out how to make a underwriter understand that I'm good to pay the loan.

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Underwriters hands may be tied. Not sure about GI bill but if its a grant, may not be considered income by lending law standards.

If you stick with USAA, push the closing out 45 days and expect to close about a week or so after that. Great company for everything expect mortgages, friendly rates, but they are the slowest in the biz no close 2nd.

You sound like you may be eligible for one or bothe of SAH and SHA grants

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momentoftruth87

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Just stated that I was preapproved for the 270k.

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Pre approved does not mean approved. That pre won't be taken off until after the file is fully underwritten which means not only must they look at the collateral-or the property in this case-but they must also look at your ability to repay-which is your income-the mortgage they'd give you to pay for the collateral.

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I just think it's ridiculous that I can get a job letter guarantee which means absolutely nothing

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It's intended for folks who don't yet have a job-someone whose finishing up college and has a job offer but hasn't started yet-or...stop me if you've heard this one before...someone transitioning out of the military but is taking a civilian job after their discharge.

In other words, you're wrong. It does mean something. A very big something. That you are employed. Now...if you choose to commit fraud and have an employer create a fictitious or make-believe job for you simply so that you can qualify for a home loan you can perhaps skirt around your own self-admitted income issues, that's fine. But you are either willfully or just honestly ignorant about exactly what that letter signifies. It means you have a job. If it's fake, then that means you actually don't have a job and that's fraud. If it's real, it means you're working and you have income you can't yet show on the way and that it's permanent and not some at best temporary income stream that terminates after a fixed period and/or if you decide to no longer continue your education.

But the only way that letter means nothing is if you decide to commit fraud and deceive the very people you're asking for help from (Loan Officers, Underwriters, etc). I can tell from the OP and your subsequent responses you don't view this for what it is. You seem to think this is some sort've shell game the lenders are playing on you. Trying to make you jump through hoops to get what you want.

In reality, you've literally "lol" at the idea that you'll willingly-if not gleefully-commit fraud in exchange for getting something you think you deserve.

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but a underwriter won't take the $1790/3years into consideration.

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So you've got-maximum-36 payments of that amount and you're complaining that they won't acknowledge that. Yet you're looking to get a mortgage for 30 years or so. Which equals out to 360 payments.

So you'll have that income for exactly 1% of the term of your mortgage, and you think it's "ridiculous," that they won't allow you to use it to qualify for the other 99% of the loan's term?

Hmmmm...I do agree this does sound ridiculous. But not in the way in which you think it does.