Joe Lovrek

12/03/2025

05/08/2024

See photos for this 3 Bath, 4 Bedroom property in San Antonio, TX 78254

02/14/2024

New home savings are in the air… No matter what your financing needs are, I’m here to help when you fall in love with a house you want to make yours. Contact me to learn more today!

02/02/2024

New mortgage update! PenFed just updated its terms of service for Guam. For loans up to $1,089,300, the loan-to-value limit is 95% for conventional mortgages, and 97% for HomeReady and first-time homebuyers. (Only one borrower must be a first-time homebuyer!) If you're thinking about buying a home, get in touch to learn more about how I can help!

11/02/2023

Challenges with VA Assumable Loans Failing to Close

VA loan assumptions allow a new borrower to take on an existing VA loan. Despite attractive loan rates, these assumptions often fail to reach closing due to several reasons.

Time Delays

The process isn't quick; it averages around 60 days, according to a mainstream lender. This delay deters sellers from removing their homes from the market to wait. The lack of protective contingencies for sellers exacerbates the issue, making it a risky waiting game.

Eligibility and Liability Challenges

VA loan assumptions ideally occur when the new borrower is VA-eligible and meets current underwriting standards. However, only about 14% of buyers are VA-eligible (data from the National Association of Realtors, July 2019 - June 2020). When a non-VA buyer assumes the loan, it affects the original borrower’s entitlement and exposes them to liability if the new buyer defaults.

Financial Hurdles

Buyers often face the challenge of covering the difference between the assumed loan amount and the home's sale price. Additionally, they must take on the seller's payment terms, which can result in a shorter mortgage term and potentially higher payments, even at a lower interest rate.

Lender Restrictions

Not all lenders facilitate VA loan assumptions. If the loan's servicer doesn't offer assumptions, the process halts. Additionally, a significant portion of VA loan assumption applications face rejections.

Steps for VA Loan Assumptions

Despite these challenges, here's how VA loan assumptions could work:

1. Verify if the lender offers VA assumptions.
2. The new borrower must qualify under the lender’s criteria.
3. The seller must agree to the assumption and provide necessary documentation.
4. The lender must approve the assumption, a process that often takes over 60 days.
5. Once approved, the new borrower takes over the loan payments.

Though the process is intricate and demanding, successful VA loan assumptions are possible.

06/16/2023

Learn how to select the best real estate agent to fit your needs. Discover what questions to ask, what to watch for, and how to see their track record and license qualifications.

06/14/2023

We’re celebrating and reminding you that PenFed can assist with all of your home financing needs. If you’re searching for a new home to wave your flag from, we’re here to help!

05/12/2023

Did you hear that sound? That’s the entire mortgage industry shouting, “hip, hip hooray!” The Federal Housing Finance Agency (FHFA) on Wednesday announced that it would rescind a controversial loan-level pricing adjustment (LLPA) for conventional borrowers with debt-to-income (DTI) levels at or above 40%.

The FHFA, which regulates Fannie Mae and Freddie Mac, had previously delayed implementation of the DTI LLPA from May 1, 2023 to August 1, 2023 following a chorus of upset from mortgage industry stakeholders, including the influential Mortgage Bankers Association (MBA).

05/10/2023

Knowing the basics of VA loans can be a big help when applying for one. Learn about the advantages, the credit requirements, closing costs, and what you need to do to get a VA mortgage.

05/04/2023

This 100% makes sense