http://BrianTheVAMortgageGuy.com/

Kentuckiana VA Mortgage Mastermind Group, 12000 Shelbyville Road, Louisville, KY (2026)

08/27/2026

Brian Phillips

VA TIP du Jour — CAN YOU RECAST A VA LOAN?

Did you know that VA loans do NOT allow a principal and interest recast?

First, what is a recast?

🏡 A mortgage recast is when you make a large principal payment and the lender recalculates your monthly principal and interest payment using the new lower balance and remaining loan term.

Your interest rate stays the same, but your monthly payment goes down.

🚨 Here’s the important VA difference:

❌ VA loans do not allow recasting
❌ FHA and USDA loans generally do not allow recasting
✅ Conventional loans may allow a recast, depending on the servicer and loan terms

WHY DOES THIS MATTER?
One of the most common situations we see is a Veteran who wants to BUY before they SELL.

Maybe they find the perfect new home but haven't sold their current home yet.

They may say:

"No problem. I'll buy the new house now, then when my old house sells, I'll put $100,000 toward my new VA loan and lower my payment."

They absolutely CAN pay down the principal...

But simply making that large principal payment will NOT recalculate their VA mortgage payment through a recast.

So what are some options?

💡 OPTION #1 — VA IRRRL AFTER THE SALE

The Veteran may be able to apply the proceeds from the sale toward the VA loan and later complete a VA IRRRL to establish a new loan balance and lower payment.

BUT — there are some important rules!

⏰ The Veteran must meet the VA's loan seasoning requirements, including the applicable 210-day waiting period and payment requirements.

📉 And for a typical fixed-rate-to-fixed-rate IRRRL, the new interest rate generally needs to be at least .50% lower than the existing rate.

So we cannot simply assume, "We'll refinance it later."

The market has to cooperate too!

💡 OPTION #2 — BRIDGE LOAN OR SECOND MORTGAGE/HELOC

Depending on the Veteran's situation, another strategy may be using a bridge loan, second mortgage, or HELOC against the current home.

This may allow the Veteran to access some of their existing equity BEFORE their home sells and use those funds toward the new purchase.

That can help keep the initial VA loan amount closer to their ultimate goal instead of taking a much larger VA loan and hoping to refinance it later.

Every situation is different, and these strategies have their own qualification, cost, and repayment considerations.

THE BIG LESSON: PLAN BEFORE YOU BUY.

Buying before selling can be a fantastic strategy for a Veteran — but the financing needs to be structured correctly from the beginning.

Don't assume you can simply recast a VA loan later.

Don't assume rates will be lower when you're ready for an IRRRL.

And don't wait until after closing to start talking about what happens when the old house sells.

Build the strategy BEFORE you build the loan.

Who a Veteran works with matters. Be an asset, not an ass..

08/24/2026

These were collected from my VMA community, there are WAY too many great VA benefits that Veterans, Realtors, and even lenders don't know about.

Here's some VA Loan facts you need to know:

You can have multiple VA loans at the same time. —-> Having an existing VA loan does NOT automatically mean you can't use your benefit again.

You can buy a MULTI-UNIT property with a VA loan! —-> A Veteran can purchase a 2–4 unit property, occupy one of the units as their primary residence, and may be able to **use rental income from the other units to help qualify. This can be an incredible way to use the VA benefit to start building long-term wealth.

VA loans consistently have one of the lowest denial rates among the major loan programs.**
Yet Veterans are still told that VA financing is "difficult."

VA has NO title-seasoning requirement.—->
A Veteran can potentially purchase a recently flipped property without a 90-day waiting period, an two appraisals are never needed. Don't FHA your VA loan!

VA has added the ability to RUSH an appraisal. —-> When timing becomes an issue, there is now a process that may allow the lender to work with the VA appraiser to expedite the appraisal—for an additional lender-paid fee.

Peeling/chipped paint on homes built after 1978 and many non-habitable outbuildings are no longer automatically VA appraisal repair items.
Know today's VA guidelines—not the rules people remember from years ago.

Pest/termite inspections are NOT required in many states. —-> Requirements can depend on the property's location and circumstances.

The VA itself does NOT establish a minimum credit score.—-> Lenders may establish their own credit requirements or overlays. 12 months of good credit is the key to using this guideline effectively for what the lenders call a Manual Underwrite.

VA does NOT have a simple hard maximum DTI. —-> (Debt load Ratio) Residual income, credit history, automated underwriting findings, compensating factors, and the overall strength of the Veteran's file matter.

Two unmarried Veterans can potentially buy a home together with zero down using VA financing. —-> VA joint loans can make this possible.

Receiving qualifying VA disability compensation? You may be EXEMPT from the VA Funding Fee —-> Don't guess—> GET a copy of your Certificate of Eligibility (COE)and verify your funding-fee status.

Surviving spouses may qualify for the VA Home Loan Benefit —> Again, the first step is getting the COE!

Your VA Home Loan Benefit does NOT expire —-> Veterans can potentially use their benefit multiple times throughout their lifetime.

Seller-paid closing costs are SEPARATE from VA's 4% seller-concession calculation —-> This is a BIG one! The VA's 4% rule does NOT mean a seller can only contribute 4% toward the transaction.

A condo can be VA approved without being FHA approved —> VA and FHA condo approvals are completely separate processes.

And if an appraisal has a value challenge, VA gives us TWO opportunities to advocate for the Veteran —-> First - Tidewater, and then, if necessary, a Reconsideration of Value which does not involve the appraiser.

The VA loan isn't the problem —-> Not knowing how to properly USE the VA loan is the problem.

Who you work with matters- Brian the Mortgage Guy - NMLS 228373

08/23/2026

Before you start looking at homes, get pre-approved first.

It helps you know your budget and shows sellers you are ready to buy.

Because the last thing you want is to find the perfect home and scramble to get your loan figured out. Even worse than eating a PB&J backward.

Send me a message and let’s get you ready.

08/22/2026

(Borrowed from a friend, aka fellow Patriot, aka fellow mortgage giy)

This Veterans United case just got a hell of a lot more interesting.

And I have a little different perspective on it because I have firsthand knowledge of Realtors being removed from the referral network.

More on that in a second.

A federal judge dismissed some of the claims against Veterans United and Veterans United Realty.

But some of the big RESPA claims survived and can now move into discovery.

According to the allegations, Veterans United Realty built a network of thousands of real estate agents. An agent receiving a referral would pay VUR 35% of their commission when the transaction closed.

That referral fee itself isn't necessarily the issue.

The BIG allegation is what supposedly happened when an agent didn't keep the mortgage with Veterans United.

Plaintiffs allege agents could receive fewer future leads or be removed from the network for sending borrowers elsewhere.

Here's where this gets personal for me.

I have firsthand knowledge of Realtors who were removed from that network.

I'm not going to pretend I know every fact involved in this lawsuit or why every individual agent was removed.

But I know enough from my own experience to tell you that the allegation about Realtors being removed isn't some hypothetical scenario I've never heard of.

I've seen it.

And THAT is why discovery is going to be really interesting.

Because VU reportedly argued that future leads weren't a "thing of value" under RESPA.

The judge wasn't willing to accept that argument at this stage.

Think about the implications of that for our industry.

We've spent years building referral programs, lead networks, desk agreements and "partnerships" where everybody says the consumer is completely free to choose.

Great.

But if an agent believes choosing another lender could cost them future business, how free is that choice in practice?

That's the bigger question.

And it doesn't stop with Veterans United.

If discovery establishes that future referral opportunities were being used as leverage to influence where mortgage business went, I think a whole lot of companies are going to start taking a much harder look at their own arrangements.

Again, these are allegations and the court hasn't determined that VU violated RESPA.

But this isn't theoretical to me anymore.

I've personally seen Realtors removed from the network.

Now I want to see what discovery shows about why.

Mortgage and real estate people, what do you think?

Is this a one-off situation, or could this case ultimately change how referral agreements are structured across our industry?

Because depending on what comes out in discovery, there might be more than one compliance department reaching for the Tums.

*I take no credit for post but I strongly support it

08/20/2026

VA TIP Du Jour: “Who You Work With Matters!”

Did you know that Loan Officers, Real Estate Agents, AND Veterans can call the VA Regional Loan Center (RLC) for help?

Too often, Veterans and active-duty buyers hear:

❌ “The appraisal is what it is.”
❌ “That condo won’t work.”
❌ “That repair has to be made.”
❌ “There’s nothing else we can do.”

But here’s the problem: sometimes the lender hasn’t even tried to use the VA processes available to work through the challenge.

The VA loan is actually one of the most flexible mortgage programs available when you understand how to use it. A true Veteran Mortgage Advisor doesn’t just say, “That’s a VA rule.” They know when to pick up the phone, call the VA Regional Loan Center, and ask for help.

📞 The RLC can help with:
VA underwriting guideline questions
→ Loan Officers & Underwriters

Appraisal turn times or status updates
→ Loan Officers, Real Estate Agents & Veterans

Veterans having trouble making payments
→ Veterans

Condo approval questions
→ Loan Officers, Processors & Underwriters

Reconsideration of Value (ROV) questions
→ Loan Officers, Real Estate Agents & Veterans

Property-condition questions
→ Appraisers, Loan Officers, Realtors & Veterans

Veteran Mortgage Advisors realize that Knowing how the VA process actually works matters.

It allows you to confidently tell your Realtor partners:

VA isn’t a bad loan product.
VA isn’t automatically harder to close.
And “the VA won’t allow it” shouldn’t be the end of the conversation when there may be another VA process available.

The VA is there to help Veterans become homeowners—and sometimes the difference is simply working with someone who knows who to call and what questions to ask.

WHO YOU WORK WITH MATTERS. 🇺🇸
📲 Save the VA Regional Loan Center number in your phone:
877-827-3702

You never know when one phone call could help save a Veteran’s transaction.

Be an asset to your Veteran, not an ass..

08/17/2026

VA TIP Du Jour: VA Condos Aren’t as Hard as You Think

One of the biggest myths in mortgage lending is:

“VA loans and condos are hard.”

The reality? A VA Condominium Loan is usually no more difficult than other condo loan products—especially when the project is already VA approved.

✅ If the condo is already VA approved:
We generally only need the condo insurance information

No giant condo document package is required

Turn times can be very similar to conventional financing

Bonus Tip: If a condo is already FHA approved, getting it added to the VA approved list can often be very manageable.

🔎 Check VA Condo Approval Status
The VA Approved Condo Lookup is public:

https://lgy.va.gov/lgyhub/condo-report OR download my VA-dedicated mortgage app that has an even better condo search function https://app.valoaneducator.tv/brianphillips-228373

PRO TIP: Search by STATE first, rather than relying on the condo name. The project's name may not match exactly how it is listed in the VA system.

📋 What if the condo ISN’T VA approved?
Don’t panic.

The VA can review the condo documents directly through WebLGY, and review times are often approximately 10–14 business days once the complete package is submitted.

💡 And here’s the part many LOs and Realtors don’t know…
Even if the VA rejects the condo project, there may STILL be a path to closing through a VA One-Unit Condo Waiver.

Generally, the rejection must:

✔️ Be within the last 2 years
✔️ Be submitted through the VA SNOW ticket system
✔️ Include the proper waiver template for the best chance of success

Need help with the waiver? Hit up Fischer.

🚨 BOTTOM LINE
Don’t be afraid of VA condo financing.

Veterans deserve access to condos, too. Too many potential deals die simply because the people involved assume VA condo financing is too difficult before understanding the actual process.

The more we educate ourselves on VA lending, the more Veterans we can successfully serve. 🇺🇸

Who a Veteran Works with Matters! Be an asset, not an ass.

08/14/2026

VA TIP Du Jour: We Have to ASK!

VA loans are different from other loan programs. While VA can be more flexible when evaluating income versus outgo, that flexibility comes with a responsibility: we need to accurately evaluate the expenses of the entire household.

VA guidance tells us to consider other deductions from income, including:

Job-related expenses
Child care expenses
Significant commuting costs
Other direct or incidental costs associated with the borrower’s or spouse’s employment
👶 Child Care — Don’t Assume, ASK!
For children up to age 12, the lender is responsible for determining whether the borrower(s) have child care expenses.

That means we can't simply rely on what appears on the credit report or application. We have to ask the questions.

💡 Loan Officer Tip: When you see children in the household, ask:

“Do you have any child care expenses associated with your employment?”

And remember to look at the bigger picture. Are there significant commuting costs? Job-related expenses? Employment expenses for the spouse?

VA gives us flexibility, but we also have a responsibility to make sure we're accurately gauging the household's true monthly expenses and residual income.

📖 Reference: VA Lenders Handbook, VA Pamphlet 26-7, Chapter 4 — Other Deductions from Income

Who a Veteran Works with Matters! Being an asset, not an ass!

Brian the Mortgage Guy - NMLS 228373

08/11/2026

VA Tip of the Day: Reservists & National Guard Members — Don’t Forget the Points Statement!

Did you know that Reservist and Guard members who were not activated may need to verify 6 years of qualifying service with a Retirement Points Statement to obtain their VA Certificate of Eligibility (COE)?

The required document varies by branch, and many Veterans aren’t sure what the form is called or where to request it. Here’s a quick reference:

🪖 Army National Guard
NGB-23 — Retirement Points Accounting
PLUS proof of Honorable Discharge
• Discharged: www.hrc.army.mil | 888-276-9472
• Not discharged: Contact the member’s unit

🪖 Army Reserve
Form 5016 — Chronological Statement of Retirement Points
PLUS proof of Honorable Discharge
• Discharged Oct. 2002 or later: www.hrc.army.mil | 888-276-9472
• Prior to Oct. 2002: Submit SF-180 to the National Archives

⚓ Navy Reserve
NRPC 1070-124 — Annual Retirement Point Record
PLUS proof of Honorable Discharge
• 1995–present: www.npc.navy.mil | 866-827-5672
• Prior to 1995: Contact the National Archives and specifically request the points record, not just the service jacket.

✈️ Air Force Reserve & Air National Guard
AF 526 — Point Summary Sheet
PLUS proof of Honorable Discharge
• myPers | 800-525-0102
• Prior to 2004: Contact the National Archives and specifically request the points record, not just the service jacket.
• Discharged 2004 or later: Check PRDA through myPers

🦅 Marine Corps Reserve
NAVMC HQ509 or NAVMC 798 — Reserve Retirement Credit Report
PLUS proof of Honorable Discharge
• Marine Online (MOL) | 703-784-9307

⚓ Coast Guard Reserve
PPC-4973 — USCG Computation of Retirement Point Credits
PLUS proof of Honorable Discharge
• 866-772-8724

💡 Pro Tip: When possible, start by having the Veteran contact their original unit command for a copy of their points statement before going through an online records request.

Other helpful contacts:
• National Archives / Active Duty records: 866-272-6272
• Army discharge evidence for disability: U.S. Army Physical Disability Agency | 877-577-3065
• Military record corrections and discharge upgrades are available through VA and National Archives resources.

📌 Bottom line: A DD-214 may not tell the whole story for a Guard or Reserve Veteran. It may ONLY be for training! If they weren't activated, identifying the correct points statement can be the key to documenting qualifying service and getting their COE.

Feel free to message me when you run across one of these files and need help figuring out which document your Veteran needs and where to send them to get it! 🇺🇸

Who a Veteran Works with Matters! Be an asset, not an ass.

07/23/2026

VA Tip of the Day: installment loan payments

VA Doesn't Count Every Monthly Debt Against a Veteran's DTI.
One of the biggest mistakes we see is loan officers automatically counting every installment debt on a credit report.

That's not how VA works.

According to VA Lender's Handbook 26-7, Chapter 4, Section 5(c), in most cases installment debts with fewer than 10 months remaining do not have to be included in the Veteran's debt-to-income ratio.

The handbook states that significant debts generally include:

Debts with 10 months or more remaining, and Short-term debts (under 10 months) only if the payment is so large that it has a severe impact on the family's financial resources.

That means an installment loan with eight payments left or a personal loan that's almost paid off may not need to be counted in the DTI calculation.

This can make the difference between an approval and a denial.

⚠️ The key is understanding when a short-term debt still has to be included because of its impact on the Veteran's finances. Simply excluding every debt under 10 months isn't correct either. For example, a leased car with 10 payments left that will need to be turned in for another lease car would NOT be excluded.

Who you work with matters.

VA lending isn't about memorizing guidelines—it's about understanding how to apply them correctly to serve Veterans.

Veteran Mortgage Advisors spend more time than the average loan officer in the VA Lender's Handbook 26-7. In this case, Chapter 4, Section 5(c). It helps us qualify more deserving Veterans while staying fully within VA guidelines.

If you are a Veteran homebuyer, you deserve to work with a lender who knows the rules—not just lenders who think they know the rules.

Be an ASSET, not an Ass to our Veterans! Who a Veteran Works with Matters!

Kentuckiana VA Mortgage Mastermind Group

08/27/2026

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