More Important Information on VA Appraisals - 10/29/10 06:10 PM
In the last blog post we discussed the cost of VA appraisals and how fees vary from region to region. But VA appraisal fees also vary depending on the type of work done. The cost for a single family home isn't the same as the VA appraisal fee for a duplex or other property.In fact, the VA breaks down the appraisals into a few separate categories, charging different fees for single family homes, multi-family units, individual condominiums and manufactured homes. In some areas a manufactured home or mobile home may have the same VA appraisal fee as a single family home. … (2 comments)

How Much Does a VA Appraisal Cost? - 10/29/10 10:42 AM
VA loans require one very important step to move forward. When a buyer finds a home they want to purchase with a VA mortgage, they must have a VA assigned appraiser look at the home to establish fair market value. The appraiser comes and does the work, prepares reports and submits those reports to the Department of Veterans Affairs. The submitted information is what allows the information to issue a Notice of Value, which is essentially what the VA considers the fair market value of the property and the amount of the loan which would be guaranteed by the VA if … (1 comments)

VA Loans and VA Refinancing for Surviving Spouses - 10/28/10 04:08 PM
In the last blog post there was much discussion of VA loans and the spouse of the VA borrower. Depending on when a VA loan applicant gets their first VA mortgage, it’s likely that one important question never comes up in the process, but it’s well worth asking anyway—even if it’s just to file the answer away for future reference.If a veteran dies on active duty or as the result of a service related medical problem, does the spouse have any VA loan eligibility?VA rules state that the unmarried surviving spouse can apply for VA loan eligibility. But that’s not all—surviving … (1 comments)

VA Loans and Spouses: What You Need to Know - 10/28/10 10:06 AM
The military offers additional pay and allowances for married military members, including more money for housing and with-dependent rates for cost-of-living allowances.
The extra money isn’t the only perk available to married military members and veterans; there are also some advantages to being married when it comes to applying for a VA mortgage.
Single veterans or active duty service members who want to buy a home with a VA guaranteed mortgage must meet VA occupancy requirements. A single member stationed overseas can’t, for example, have his or her parents occupy the home purchased with a VA loan instead—even if the overseas … (1 comments)

An Important Change To the VA Loans Program - 10/27/10 03:35 PM
One of the best things about the VA home loans program is that it changes with the times. The Department of Veterans Affairs frequently issues press releases and announcements about changes to the VA home loan guaranty program; many changes are due to legislation, programs that have started or expired, or temporary issues related to natural disasters or other situations.
On October 13, 2010, President Obama signed the Veterans' Benefit Act of 2010 into law, which made an important change to the VA home loans program for veterans receiving compensation for service-connected disabilities. Under VA rules, any veteran who qualifies for … (2 comments)

What Does the VA Say About VA Loans for Mobile Homes? - 10/27/10 10:08 AM
A number of questions have come in recently about VA guaranteed loans for manufactured homes or mobile homes. Some people mistakenly believe mobile homes are not eligible for VA mortgages, but that is not true. Any manufactured home that meets VA standards is eligible for a VA mortgage. The buyer should remember that while the Department of Veterans Affairs can't force a lender to issue a home loan to a borrower, VA regulations do cover loans for mobile homes as long as they meet the following requirements:A mobile home won't be considered for a VA guaranteed loan unless it is installed … (1 comments)

When You Don't Agree With the VA Appraisal - 10/26/10 04:20 PM
Sometimes getting a property appraised can make for a nervous experience.. After all, VA home loan amounts depend greatly on the Notice of Value—if the fair market value of a home differs from the asking price, the final amount of the loan may not be as high as the borrower needs, forcing him or her to come up with the difference out of pocket should they agree to move forward with the sale.
The VA borrower who wants to get a VA refinancing loan such as cash-out refinancing also has cause to worry about situations where the reappraised value isn’t as … (1 comments)

VA Refinancing Loans and Property Appraisals - 10/26/10 10:24 AM
Property appraisals cost money, and it’s natural that a homeowner with a VA mortgage would want to plan for all expenses related to refinancing a VA home loan including the appraisal. But what VA refinancing loans require a re-appraisal of the property?
For interest rate reduction refinancing loans or IRRRLs, the Department of Veterans Affairs does not require a re-appraisal. Since these loans don’t require a VA Notice of Value or NOV, VA rules don’t require the appraisal.
That’s not to say the lender won’t request one depending on the timing and circumstances of the refinancing, but it’s not a VA … (1 comments)

VA Loan Payment Rules - 10/25/10 06:23 PM
Did you know the VA establishes rules for loan repayment? While that may sound like a collection of regulations that hold the VA mortgage holder responsible for on-time payments, the VA also makes requirements for the lender. There are multiple reasons for this; standardization is one of them, holding all lenders to the same set of standards insures fair treatment for all. The VA rules are also designed to prevent unscrupulous “gotcha” practices and situations where the borrower finds themselves trapped in a loan product they really can’t afford.
The VA sets maximum payoff times—30 years, 32 days for amortized loans. … (1 comments)

All About VA Loan Amortization - 10/25/10 10:30 AM
First time home buyers and VA mortgage applicants have a universe of new vocabulary to learn. It’s one of the “occupational hazards” of buying a home—there’s a lot to learn for the newcomer.
Amortization is one of the terms new house hunters quickly learn once they get serious about buying a new home. It’s basically banker-speak for the process of paying off your mortgage over time with regular payments.
For VA mortgages, there are requirements set by the Department of Veterans Affairs on how VA loans may be amortized. For example, the maximum maturity on a VA home loan is 30 … (1 comments)

VA Refinancing Rules For IRRLs and Streamline Refinancing Loans - 10/22/10 06:14 PM
In today’s economy, refinancing loans are more popular than ever. Veterans seeking lower montly payments and interest rates often turn to the VA’s Interest Rate Reduction Refinancing Loans or IRRRL, which allows the VA mortgage to be refinanced at a lower rate but with no cash back to the borrower. The express purpose of the IRRRL is to lower payments and interest rates plus allow energy efficient improvements to be included in the cost of the loan. IRRRLs are often called Streamline loans or VA-to-VA refinancing loans.
 Like the VA mortgage itself, the situations in which VA borrowers apply for their … (1 comments)

The VA Refinancing Options You Didn't Know You Had - 10/22/10 09:42 AM
Veterans have many refinancing options open to them when it comes to VA refinance loans. There are programs available on a short-term basis that allow vets to refinance non-VA loans in the same way other borrowers can use the Making Home Affordable refinancing program; there are also cash-out refinancing loans that let qualified borrowers get a VA refinancing loan against the equity in their property.
The Interest Rate Reduction Refinancing loan is an option some buyers find most helpful when they want to lower monthly payments on their VA mortgage, and while VA loan applicants can’t get any cash back on … (2 comments)

Answers to the VA Loans Quiz: Who Can Apply for a VA Loan and When? - 10/21/10 02:56 PM
Our quiz this week was all about who is eligible for a VA home loan and when. Because the rules for VA home loan eligibility differ according to whether you're active duty, Guard or Reserve, or a surviving spouse of a military member, applying for a first time VA home loan can be a bit confusing at first. Our quiz is designed to take some of the mystery out of VA loan eligibility. 1. I recently enlisted to go active duty Air Force/Army/Navy/Marine Corps. When can I use my VA loan benefit?The correct answer to this one is C) Once you … (1 comments)

VA Loan Quiz: Who Can Get a VA Home Loan and When? - 10/21/10 09:59 AM
It's time for another VA Loan Quiz to test your knowledge and help fill in any gaps in your understanding of VA loan basics. Today's quiz is all about who is eligible for a VA home loan and when--one of the biggest questions a newcomer to VA benefits has is "when can I take advantage of my VA benefits" and the VA home loan is no exception--people sign up for the military and immediately start looking to the horizon when it comes to VA benefits like home loans and the GI Bill. As with all our quizzes, the answers will be … (1 comments)

Why Would the VA Deny My Loan Application? - 10/20/10 04:06 PM
There are many reasons why the Department of Veterans Affairs could turn down a VA loan application. Some of the most obvious reasons include debt-to-income ratios that are too high---any applicant who has a ratio of more than 41% requires extra attention on the application and unless there are special circumstances or additional information needed to qualify a borrower in those cases, they may be denied.Other reasons include having a poor record of on-time bill payments in the last 12 months. It’s crucial to plan ahead when trying to get a VA home loan, including putting financial affairs in order so … (1 comments)

VA Loans: When Does the VA Say NO? - 10/20/10 09:28 AM
Before getting into today's topic, I want to invite you to connect on Facebook--I'd love to friend or fan your Facebook page as well, trade links and stay connected. Social media is a wonderful tool! On with the post...
The VA has a list of VA guaranteed loan purposes it will definitely approve for qualified borrowers, but it also has a list of things it won’t approve a VA mortgage for; knowing the difference can be a big help for house hunters who are looking for flexible options when it comes to buying a property but aren’t sure what the limits … (2 comments)

What Are The Basic Elements of a VA Home Loan? - 10/19/10 06:07 PM
The basic elements of a VA home loan are, like many other loan products, fairly simple. The reason these basics confuse the first time home buyer has as much to do with just getting familiar with the VA loan process and how it works as it does with learning a new vocabulary.The “big three” questions most first time VA mortgage applicants want to know are also the first three terms first time home buyers usually learn. Newcomers to the housing market want to know how much they can borrow, how much they will have to pay up front, and in the … (1 comments)

Are VA Home Loans More Forgiving of Bad Credit? - 10/19/10 09:11 AM
VA home loans are an important benefit for veterans partly because the credit requirements are often more lenient than their counterparts in the conventional lending industry.VA mortgage credit requirements aren’t necessarily more forgiving of bad credit, but the standards to which applicants are held differs from conventional loans. Where a conventional loan pays more attention to the actual credit score of a loan applicant, VA mortgage credit requirements focus more on the pattern of dependable payments on the credit history.In other words, if you’ve made some mistakes in your past, but have a year or more of timely, dependable payments on … (1 comments)

Can I Get Cash Back From My VA Home Loan? - 10/18/10 04:20 PM
When can a veteran borrower get cash from a VA home loan? Do VA loan rules allow a borrower to receive cash as part of the loan agreement? Or does the borrower have to invest all monies borrowed into the purchase or improvement of the property?
These are questions many first-time borrowers have; like many other aspects of VA mortgages, the answer depends greatly on the type of VA loan and the circumstances the borrower finds himself or herself in.
When it comes to a regular first-time home purchase, the buyer cannot get cash back from the VA home loan. If … (2 comments)

What Can I Use a VA Loan For? - 10/18/10 09:06 AM
There’s no such thing as a dumb question, and for first time home buyers one of the most basic questions is “What can I use a VA home loan for?” Nobody should be afraid to ask about this--it's a source of much uncertainty for some first-time home buyers.
The question came up recently when a veteran asked whether or not a VA loan could be used to purchase a houseboat. The interesting thing is, while the VA does have a list of eligible loan purposes, it doesn’t specifically say yes or no to a houseboat purchase. Unfortunately for the buyer, since … (3 comments)

VA Loan Entitlement: What Vets Need to Know - 10/15/10 03:26 PM
Those who are new to the VA home loan process often have a few misconceptions about VA mortgages—misconceptions that are quickly dispelled once they start the application process. One of the most common is the idea that the Department of Veterans Affairs is somehow directly involved in the lending business.
The truth is that the VA does not issue VA home loans, it guarantees them. The VA agrees to pay a specific amount to the lender should the VA loan applicant close the deal on a home purchase then later go into default and foreclosure.
VA loans work on a system … (0 comments)

Important Facts About VA Loan Eligibility - 10/15/10 11:25 AM
Veterans who want to apply for a VA mortgage for a new home can apply for VA loan eligibility themselves, or have the lender help them through the process. Thanks to the Veterans Information Portal it’s a simple thing to register, fill out the form and get word of eligibility back within a short time. Lenders can help veterans get their certificate of eligibility by using a lenders-only program called ACE, the Automated Certificate of Eligibility.
There are some cases where lenders using ACE can’t determine VA loan eligibility immediately. This is often true in cases where the borrower fits into … (2 comments)

Can a Veteran Use Any Remaining VA Loan Entitlement After Buying a Home? - 10/14/10 04:35 PM
VA borrowers must apply to the Department of Veterans Affairs to get or restore their VA loan entitlement. This applies to almost everyone who wants a VA home loan whether in first-time homebuyer status or those who have purchased a home with a VA loan before. But once that entitlement has been applied for and used, can the borrower apply for another VA loan even though the original one hasn’t been paid off?In some cases, veterans who had a VA loan before may still have "remaining entitlement" to use for another VA loan, including cash-out refinancing. The current initial amount of … (1 comments)

Local Requirements for VA Home Loans - 10/14/10 11:27 AM
In the same way that every housing market is different when it comes to property values, practically every state has different requirements for VA appraisals to assign fair market value. Because of wide variations in state law, the VA has to modify its inspection procedures by state in order to make sure the home approved for a VA mortgage complies with state ordinances.For example, in Alabama, all mobile homes must be installed by someone with a state license. Before a VA Notice of Value can be completed, proof of licensure may be required.In California, VA rules state, “For properties listed on … (1 comments)

VA Loans and Property Defects on Existing Construction Homes - 10/13/10 01:18 PM
If a VA borrower purchases a home, moves in, and discovers a construction defect, do they have any recourse? In the case of new construction homes, the VA mortgage holder has a year to file a complaint with the Department of Veterans Affairs. But what recourse does the buyer of an existing construction home have?The definition of “existing construction” is essentially a home that’s already had one owner. It’s not purchased as a brand new structure, so the buyer is getting the home on different terms than if they had had the house custom built or purchased immediately after construction during … (1 comments)

Does the VA have an Obama Mortgage Program? - 10/13/10 11:18 AM
In the wake of the housing crisis, the government started a program called Making Home Affordable, designed to help qualified home owners avoid foreclosure and keep their homes. The program details include “…opportunities to modify or refinance your mortgage to make your monthly payments more affordable. It also includes the Home Affordable Foreclosure Alternatives Program for homeowners who are interested in a short sale or deed-in-lieu of foreclosure” according to the official website.
Does the Department of Veterans Affairs participate in these programs?
The VA issued guidance in May of 2010 giving lenders a way to modify VA home loans that … (1 comments)

Problems with New Construction Homes Purchased with VA Loans - 10/12/10 04:51 PM
New construction homes have a time limit when it comes to complaints about construction-related issues. If a VA borrower has a list of complaints the builder needs to address (construction defects, etc.)  the borrower has a limited time to register those complaints with the VA.
According to the Department of Veterans Affairs, the complaints must be in writing and must “…be registered with VA within the period covered by the VA Builder Warranty or the first year of any Ten-Year Warranty.”
The VA recognizes an exception to these requirements in cases where there is what the VA calls “accelerated deterioration of … (1 comments)

Can I Get a VA Loan for a Second Home? - 10/12/10 10:15 AM
Recently a question came in asking whether it's possible to have two VA home loans at the same time. While the answer depends on a great many things including the nature of the second loan, how much VA entitlement remains and other factors, there are important details a VA borrower should know up front. Many people thinking about taking out a second VA home loan are thinking about buying more property. It's true that many are looking at second mortgage options in order to use the money for home improvements or other purposes, who wouldn't want to own another home if … (1 comments)

VA Mortgages & the Difference between New Construction and Existing Construction Homes - 10/11/10 08:14 PM
For the purposes of approving and guaranteeing VA mortgages, the Department of Veterans Affairs defines “new construction homes” and “existing construction” homes differently. A new construction home is one that has been built within the last year and has never been purchased and occupied by an owner.
An existing construction home is one that has had one previous owner and is now being sold on the housing market. The key factor in differentiating between new construction and existing construction properties for a VA home loan is the presence of that first owner.
But why does the VA split hairs about new … (1 comments)

Property Appraisals Vs. Property Inspections - 10/11/10 04:43 PM
When a VA borrower finds a home they want to buy, there’s a two-step process that can protect the buyer from problems related to defects or shortcomings on the property. The first is mandatory—the VA appraisal. This is where a VA-assigned appraiser does a review of the home to make sure it conforms to VA standards and to establish a fair market value.
The VA appraiser is called in to have a general look at the property—he or she is not meant to examine it “under a microscope” so to speak. The appraiser needs to determine that the home has all … (1 comments)

Why Pre-Qualify for a VA Mortgage? - 10/08/10 04:37 PM
There's more than one way for those eligible for VA mortgages to start looking for a new home. Some buyers go through a "just looking" phase before they decide they're ready to commit, and for them, the option to approach a seller with an offer contingent on getting VA loan approval is a good way to go.
But others are more serious about the house hunt and want to start their search fully able to look for a home--and make a serious offer--within a certain price range. For these buyers, a very good way to proceed is to get VA loan … (1 comments)

VA Home Loans--How to Get Started - 10/08/10 10:49 AM
Military members and veterans thinking about buying a home often don’t start the process ready to fully commit. Many home buyers, military or not, start off in a window-shopping phase which leads to getting serious about the process of getting a home loan and buying property. First time home buyers naturally have misconceptions about buying a house—including what it takes to make an offer and start the process.
Assuming a VA loan applicant’s credit issues are in order, they have a Certificate of Eligibility from the VA, and the buyer has enough money budgeted to cover any potential down payment, closing … (3 comments)

The Truth About No Money Down VA Home Loans - 10/07/10 04:55 PM
One of the most appealing perks of the VA home loan program is the no-money-down factor. Qualified borrowers can apply for a VA mortgage that requires no down payment, leaving the borrower free to use the money that would have been used for the down payment for other things. "No money down" is prominently featured in the list of VA loan perks, but it's easy to make the mistake of assuming that the perk is a guaranteed feature of using a VA home loan to purchase property. Unfortunately, it's not. The no money down option comes into play in many situations, … (1 comments)

Facts and Falsehoods About VA Refinancing - 10/07/10 10:22 AM
The Department of Veterans Affairs offers a great deal of advice to first time homebuyers to help them navigate the process of buying a home with a VA mortgage. While the VA works with lenders and borrowers alike, the goal of the VA is decidedly pro-consumer, and the advice given by the government includes plenty of “buyer beware” strategies.
It’s easy to assume that just because a particular bank or lender is VA-approved to issue VA loans that all its employees are the most knowledgeable, scrupulous people available. But human nature being what it is, sometimes it takes a bit of … (3 comments)

How Much Does a VA Loan Cost Up Front? - 10/06/10 03:47 PM
There are many expenses related to getting a VA guaranteed mortgage. Some are standard, such as the VA loan fee which is equal to 2.15% of the total loan amount for first time no-money down VA mortgages. There are also some non-standard expenses, such as the downpayment required when the sale price of the home exceeds the VA-appraised fair market value.
There are two separate fees when it comes to making sure the home meets VA loan standards and those of the buyer. The VA requires the borrower to pay a VA appraisal fee for the work a VA-assigned appraiser does--making … (0 comments)

Can I Get a VA Loan With No Credit Check? - 10/06/10 12:01 PM
Can a potential borrower get a VA loan with no credit check? Is that even possible? Actually in certain circumstances, yes. For those new to VA loans, it sounds too good to be true, but the VA Interest Rate Reduction Refinancing Loan is just that-a refinancing loan with no credit check or underwriting.
The VA Interest Rate Reduction Refinancing Loan is specifically for those with existing VA mortgages who want to refinance into a lower interest rate and lower monthly payments than the existing loan. The logic behind this particular loan is that the borrower has already met all the criteria … (0 comments)

Restoring VA Loan Eligibility - 10/05/10 05:17 PM
Those who have already used their VA loan entitlement to buy a home don’t always keep that home for the entire term of VA mortgage. Do VA borrowers get another chance to use their VA loan entitlement?
The short answer is, “It depends.” If you have paid off a VA mortgage and sold the property, you can apply to have eligibility restored. This is the most common re-use of VA loan eligibility—a buyer who has either paid off the original VA guaranteed note, or has sold the home and used the proceeds to pay off the original loan is able to … (1 comments)

Can VA Borrowers Apply For Another VA Home Loan? - 10/05/10 10:13 AM
A lot of the discussion about VA mortgages and VA home loan applications is geared toward first-time home buyers, and with good reason—they’re the most at risk for missing out on an important detail in the process that could cost them later. Experienced home buyers have a better idea of what to expect when the times comes to look for a new home.
Even so, many are still in the dark when it comes to the rules about VA loan eligibility for that second home purchase. What can a veteran expect from the VA after taking out that first VA loan?
… (1 comments)

What Happens to a VA Loan After a Natural Disaster? - 10/04/10 01:27 PM
Most veterans and active duty service members don’t go into their VA home loan application process anticipating a natural disaster will wipe out their new home. VA borrowers are looking to a bright future and while smart borrowers do try to anticipate natural disasters and other problems that could occur over the lifetime of a VA mortgage, many are taken by surprise when it comes time to actually make claims and begin the process of recovering from a forest fire, flood, mudslide or other problems.
Do you know the first step to take when dealing with the damage or destruction of … (0 comments)

Why Consider a VA Mortgage? - 10/04/10 10:23 AM
Why are VA home loans attractive to those who are qualified to apply for them? Why not apply for a conventional loan or an FHA mortgage? There is definitely nothing wrong with either option, but VA loans definitely have a set of advantages that military members find especially useful. One of those advantages is the no-money-down option for qualified borrowers. New military families often discover that the money required up front is one of the most financially daunting aspects of buying a home. With no down payment required, the buyer can reserve more money for closing costs, the VA loan fee … (2 comments)

VA Loan Quiz Answers - 10/01/10 04:15 PM
This week’s VA Loan quiz covers topics especially for first time home buyers, who are often left wondering how VA loans work until they actually start the process. A little bit of understanding goes a long way when it comes to VA home loans; buyers should start educating themselves about the process early so they know what to expect and have few surprises along the way. Here are the answers to this week’s quiz:
1. The Department of Veterans Affairs doesn’t issue VA home loans—it guarantees them. The basic VA guarantee entitlement is:
$36,000
That amount is the basic entitlement for … (0 comments)

VA Loan Quiz Time - 10/01/10 07:38 AM
It’s time for another VA loans quiz! How much do you really know about VA home loans? You’ll learn a lot more with our quiz—especially when it comes to posting the answers, since we post links to additional resources for the Q&A.
Today’s VA Loan quiz covers a few areas many first time home buyers are in the dark about—until they begin the process of actually applying for a VA home loan. Knowing this information in advance can be a huge help and it’s always recommended that buyers start doing their homework early so they know what to expect when they … (2 comments)

 

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