VA loans are available, but they are capped at $417K for the guarantee amount. The no money down is kind of a misnomer, because they will have to pay a VA funding fee, which can range from 1.5% to 2.5% depending on if they’ve used VA loan before, but that can be rolled into the loan. Send them to a guy named Ken Bates at Militaryhomeprograms.com, he specializes in VA loans.
My bigger concern is their need to not show they can handle the payment. To a non-loan guy, this is an enormous red flag and I would question their motives. You can have the best credit in the world, but inability to pay means default, plain and simple.
For what it’s worth, today is my last day in the Air Force and last day teaching at USC… 🙁
