Important Resources for VA Borrowers - 06/30/11 09:16 AM
Are you a first-time home buyer looking for a home to purchase with a VA insured mortgage? If you’re in the early stages of considering your VA loan options, chances are you’re looking for few places to start your research.
And it’s not just new house hunters who need help; even experienced borrowers (who know plenty about occupancy rules and VA eligibility requirements) have unanswered questions depending on their needs.
For example, when shopping for a condo unit, how does a VA borrower learn about where to find approved condo projects? The answer to that particular question can be found at … (3 comments)

VA Loans: The Rules On Discount Points - 06/30/11 08:42 AM
Discount points are a way to lower the interest rate on a home loan. When the borrower purchases a discount point or points on a VA home loan, they are paying to reduce the interest rate over the lifetime of the loan which can save money in the long term.
Paying for points or “interest rate buydowns” is governed in a general way by VA regulations. In some cases the borrower has the option to purchase points in cash or to finance the payment of those points as part of the VA loan amount.
This is true for VA refinancing loans, … (1 comments)

VA Loan Dos and Don'ts - 06/29/11 09:57 AM
VA loans can be used for a variety of different real estate purchase options. A VA loan applicant can apply for a typical suburban home, but one of the big “Don’ts” of VA home loans is assuming that you’re limited to such traditional options. VA loans for condos, town homes, mobile homes and even farm homes are possible under the right conditions.
Some of the big “Do” items for first time home buyers considering buying a home with their VA home loan benefits include taking a look at all the options they might be considering, whether it’s a unit in an approved condominium project, purchasing a fixer-upper home or buying a new construction property. To … (3 comments)

VA Loans: Who Else Can Qualify For One Besides Veterans? - 06/28/11 09:22 AM
In a recent blog post we discussed applying for VA loan eligibility and how it can be done through the lender. Active duty military, retired and separated military, plus members of the National Guard and Reserve who meet the time in service and/or discharge requirements may all apply for VA loan eligibility. This can be done online, by mail or even with the lender’s help.
But is there anyone else who is qualified to apply for VA home loan benefits? Can surviving spouses of veterans or the children of veterans also apply to use this benefit?
At the time of this … (1 comments)

How Easy Is It To Apply For VA Loan Eligibility? - 06/28/11 09:20 AM
Applying for a VA loan can be intimidating for those who have never tried to get eligibility for this important veteran’s benefit and start the process. The good news is that once you’ve chosen a participating VA lender, the loan officer can help with some of your initial paperwork. Getting VA loan eligibility is the first hurdle you must clear to start the actual loan process, and the lender can apply on your behalf over the Internet.
If you choose to have the lender help you apply for VA loan eligibility, you’ll need to bring in documentation required by the VA. … (1 comments)

VA Loan Purposes - 06/27/11 09:58 AM
Every veteran or current military member who starts looking into how to use their VA home loan benefits quickly learns that VA loans are used to purchase or refinance houses, condominium units, mobile homes, duplexes or multi-family units. A bit more digging and the VA loan applicant also learns their VA loan benefits can be used to purchase OR build a house, condo or co-op unit.
VA loans are also available to refinance all of the above. But what else is a VA loan permitted to be used for?
A quick look at the rules reveals that a VA mortgage can … (1 comments)

VA Loan Interest Rate Facts - 06/24/11 11:19 AM

If you’re a first-time home buyer, chances are you have many questions about VA loans. There are plenty of myths and not-quite-true assumptions to dispel about VA home loans; some believe the Department of Veterans Affairs lends money, for example, rather than issuing loan guarantees.
The VA only insures the mortgage, it doesn’t issue the loans. That’s an example of a VA loan myth; a good example of a VA loan half-truth is related to interest rates on the mortgage.
The Department of Veterans Affairs official site states, “VA no longer prescribes interest rates for VA-guaranteed loans. The interest rate is negotiated between the veteran-borrower … (1 comments)

VA Construction Loan Facts - 06/24/11 10:17 AM

In times when the housing market isn’t as robust as it should be, new construction home loans aren’t as much in demand as they would otherwise, but there are still plenty of house hunters interested in exploring this option.
The Department of Veterans Affairs allows VA loans to be used for both existing construction and new construction properties, so a borrower shouldn’t hesitate to ask a lender about the new construction option.
The process for applying for a new construction VA loan is the same as applying for a VA loan to purchase an existing home–the borrower must have a VA certificate of eligibility and the … (2 comments)

VA Jumbo Loans and the Certificate of Eligibility - 06/23/11 09:43 AM
When a veteran or current military member wants to apply for a VA home loan, the first step is to request a Certificate of Eligibility or COE from the Department of Veterans Affairs. The COE tells the lender several things.
The first is the VA loan applicant’s basic eligibility for a VA home loan. The COE is required in most cases as proof that the borrower is able to use this military benefit. In addition, the COE has a section which states how much the borrower’s basic entitlement is, and how much remains if the entitlement has been used before.
The amount of a basic VA home … (2 comments)

VA Loans Vs. Conventional Mortgages - 06/22/11 10:15 AM
VA loans have some different rules and regulations than conventional loans, but there are plenty of ways where the requirements are similar.
VA loans offer several advantages over their conventional loan counterparts, but when it comes to applying and being approved for credit, some of the VA loan process is similar to conventional loans.For example, there are income requirements, an examination of credit history, and verification of income and previous residency.
One of the major differences with a VA loan is that the borrower’s credit score is not necessarily a deciding factor. The repayment history has a great deal to do with getting approved. … (4 comments)

Can I Get A Waiver For VA Minimum Property Requirements? - 06/21/11 09:59 AM
The Department of Veterans Affairs has a list of Minimum Property Requirements all homes must live up to before they can be approved for a VA insured home loan. The VA uses the appraisal process to insure the home is built according to applicable rules as written locally, in federal law, and the VA’s own requirements.
According to the Department of Veterans Affairs, “In existing and new construction cases, the MPRs provide a basis for determining that the property is safe, structurally sound and sanitary, and meets the standards considered acceptable in a permanent home in its locality.”
As that statement … (4 comments)

Basic Requirements For Homes Purchased With a VA Loan - 06/21/11 09:52 AM
There are many questions VA loan applicants ask about the eligibility of certain homes, based on the type of property and the condition it may be in. When it comes to VA insured mortgages, there are local, federal, and VA requirements which must be met in order for the home to qualify for a VA home loan.
The rules include general requirements and more specific ones based on known issues such as termites, flood zones and high-voltage power lines or easements. The general requirements are simple enough to understand and provide some flexibility to the lender and the VA assigned appraiser … (1 comments)

Zero Down Payment VA Home Loans - 06/20/11 11:23 AM

VA loans have one very attractive perk; unlike many other real estate loans you can apply for a VA mortgage with zero down payment.
Conventional loans and FHA mortgages require some form of down payment. Even when the percentage is low as in the case of an FHA insured mortgage, the amount of the down payment is several thousand dollars at the very least. The VA no money down option is definitely an important benefit, but don’t assume that it’s a standard part of every VA home loan package.
It’s not a guaranteed option–borrowers may encounter several situations where it’s not only in their … (1 comments)

Do My Military Allowances Count As Income for a VA Home Loan? - 06/17/11 11:37 AM
Military members who apply for a VA loan must submit their income sources–their military pay and allowances, plus any additional income from part-time jobs or other employment. All of this is subject to verification by the lender, which is required by the Department of Veterans Affairs.
VA home loan rules say only regular, dependable income to be included in the VA loan application for purposes including debt-to-income ratio calculation. Regular military pay, also known as base pay, is part of that equation as are many of the allowances listed on the military borrower’s Leave And Earnings Statement.
There are a variety … (2 comments)

VA Loans and Foreclosure Scams - 06/17/11 11:14 AM
The government aggressively investigates claims of discriminatory lending practices, violations of the Fair Housing Act, and other issues that affect military and civilian home buyers alike, but there’s an equally troubling issue facing borrowers in a continually struggling housing market; foreclosure scams.
Housing scams and real estate fraud have always been with us–any time you have a high-value investment such as a new home purchase with a VA loan or FHA mortgage, there will be people who try to take advantage of borrowers in trouble. Since the housing market crisis in 2008, scammers have found a variety of inventive ways to … (3 comments)

The Difference Between VA Loan Eligibility and VA Loan Approval - 06/16/11 09:37 AM
VA home loans have two different stages for the first time home buyer. The first is the initial stage where the borrower applies for VA loan eligibility, which is simply the process of submitting paperwork to the Department of Veterans Affairs establishing that the borrower is a veteran eligible for the benefit itself.
The second stage is the VA loan application process, where the borrower works with a lender to get VA loan approval.
VA loan eligibility should not be confused with VA loan approval. Eligibility simply indicates that a veteran meets all the criteria required to take advantage of the … (3 comments)

VA Loans, State VA Offices and VA Regional Loan Centers - 06/16/11 09:14 AM
A VA home loan is much like many other veteran benefits; in order to take full advantage of your VA benefits there is introductory paperwork, proof of service required, and at least some waiting time included while all that paperwork is submitted, processed and filed.
Vets who have never applied for VA loan eligibility or a VA home loan before can save themselves plenty of time just knowing the right office to talk to when it’s time to file that paperwork for a VA mortgage.
Every state in the USA has a VA office. There are usually many VA offices in … (1 comments)

VA Joint Loans: Occupancy Rules - 06/15/11 09:52 AM
In recent blog posts we’ve discussed VA joint loans, which includes VA mortgages issued to one veteran and one civilian who is not a spouse.
Joint loans can also include the veteran and spouse who is also a veteran, if both entitlements will be used, and also groups of veterans, all of whom will use their VA home loan entitlement. VA home loans to a veteran and spouse who is not a vet are issued as a “typical” VA mortgage rather than a joint loan.
A VA joint loan works by issuing the VA guaranty based on each veteran’s portion of the loan. Each … (1 comments)

VA Local Requirements For Georgia, Hawaii, and Idaho - 06/14/11 09:09 AM

In some of our recent blog posts, we’ve reviewed local requirements properties must meet in order to be approved for a VA home loan. These local requirements are reviewed when a VA-assigned appraiser comes to look at the home and assign it a fair market value; the appraiser is required to look at property to make sure it meets VA minimum property standards (MPRs for short) plus any local requirements that may apply.
Any condition observed that does not meet VA MPRs or the local code must be corrected before the loan can be approved. The VA does not maintain a record … (2 comments)

Rules for VA Joint Loans - 06/13/11 09:49 AM
VA joint loans are an arrangement where the veteran borrower can apply for a VA insured mortgage with another party, each person sharing financial responsibility for the home loan.
In cases where one borrower is a veteran using VA loan entitlement and the other borrower does not use a VA loan benefit, only the veteran’s portion of the loan is guaranteed by the Department of Veterans Affairs. When vets borrow together, they each use a portion of their entitlement and take responsibility for paying back their share of the loan.
A civilian borrower has no entitlement to use, and a veteran … (1 comments)

VA Joint Loans: Rules for Engaged Couples - 06/13/11 09:25 AM
The VA has many rules and regulations covering eligibility for VA home loans, including situations where a veteran wants to borrow with another person. Joint loans can be made to a veteran and non-veteran, a veteran borrowing with a fellow vet where both borrowers use a portion of their entitlement, even a veteran borrowing with a spouse who is also a vet using his or her entitlement.
The common factor in all these situations is that each borrower uses a portion of their entitlement on the loan–no one person’s VA home loan entitlement is used in its entirety. A joint loan … (1 comments)

Refinancing and VA Loan Entitlement - 06/10/11 10:47 AM
A borrower who purchases a home using a VA insured loan may want to refinance the loan at some point. When it’s time to explore options, borrowers can choose between VA cash-out refinancing loans and Interest Rate Reduction Refinancing. There are important differences between the two types of loans.
Cash-out VA refinancing loans let the borrower take cash proceeds from the loan for any purpose acceptable under the terms of the loan; VA IRRRLs do not allow any money back to the borrower. Because of these differences in the rules covering cash back to the home owner, there are different rules … (2 comments)

VA Loan Amounts--What's the Maximum? - 06/10/11 10:29 AM
Many of the most frequently asked questions about VA home loans are too general to answer without additional information. This is definitely true of one of the frequently asked question, “How much can I borrow using a VA home loan?”
Because there are many different types of VA loans, and because conditions in housing markets all over the United States differ greatly, there’s no single answer, but the Department of Veterans Affairs does have a list of guidelines for particular loan types that can provide some basic information. Maximum VA loan amounts depend in part on loan limits set by county, … (1 comments)

I Had a VA Loan Previously. Can I Get Another One? - 06/09/11 12:05 PM
One of the most common questions about VA home loans is whether a VA borrower can take out another VA home loan at some point in the future. This isn’t a simple question to answer–the answer may vary depending on your circumstances.
For example, consider the case of a borrower who purchased a home using a VA insured loan pays off the original loan and has sold the home. Can this borrower apply for a second VA loan? According to the VA, “Normally, if you have paid off your prior VA loan and disposed of the property, you can have your … (1 comments)

VA Loans and Natural Disasters: Insurance Coverage - 06/08/11 10:25 AM
In the wake of many natural disasters across the United States including tornadoes in western Massachusetts and flooding along the Missouri River, it’s a good time to review the VA policies regarding insurance requirements on VA insured mortgage loans.
When headlines announce $90 million in insurance claims for tornado damage on the east coast and a whopping 17,000 claims filed in Joplin, Missouri after similar damage there, it’s logical that a new VA home loan applicant would want to know current VA policies on home insurance should something similar happening to them.
According to the VA official site VA.gov, Department of … (1 comments)

Who Can Get a VA Home Loan? - 06/08/11 10:13 AM
When discussing VA home loans, it’s easy to assume the benefit is for active duty service members only, but in reality there are a lot of people who can apply for VA loan eligibility. While it’s true that active duty members who have served 181 days or more are eligible to apply, there are also rules for those serving in the Selected Reserves, National Guard, and even some civilians.
Anyone who has served at least six years in the Guard or Reserves is eligible to apply for VA loan eligibility provided they are either still serving, got an honorable discharge, or … (1 comments)

Do You Live In A "VA Jumbo Loan County"? - 06/07/11 09:24 AM
For typical VA home loans, the loan limit is based in part on something known as the county loan limit. That limit is normally $417 thousand, except in areas the VA has designated as high-cost counties. These areas have higher VA loan limits because the housing market there is more expensive.
On the subject of VA loan maximums, the Department of Veterans Affairs official site declares, “The maximum guaranty amount (available for loans over $144,000) is 25 percent of the 2011 VA limit” which again, is typically $417,000 except in high-cost counties.
The VA adds, “Therefore, a veteran with full entitlement … (1 comments)

VA Loans: Can I Use a HUD Value Notice Instead of a VA Appraisal? - 06/07/11 09:17 AM
When a house hunter looks for a house, has one appraised by a VA-assigned appraiser, and decides not to purchase the home after all, another veteran could get the benefit of that VA appraisal if they commit to buying the home before the appraisal expires.
Knowing that would lead some VA loan applicants to wonder if the same isn’t true of homes that were appraised by an FHA-approved appraiser. Can a VA borrower have a HUD Value Notice converted for VA use?
According to the VA, the answer is no–in most cases. “Generally, HUD value notices cannot be converted for VA … (1 comments)

VA Loan Fees and Charges–What Happens If The Loan Never Closes? - 06/06/11 10:30 AM

In the house hunting process, buyers who want to purchase a home with a VA mortgage have plenty of options all the way up to the time of closing. Those options include terminating the purchase of the home if the buyer hasn’t already signed a binding agreement.
There are many reasons why a VA loan applicant might want to cancel the purchase of a particular home–that’s one reason why it’s so important to choose the terms of an agreement to purchase the property carefully.
Borrowers are encouraged to sign purchase agreements containing clauses making the sale of the property conditional on getting … (1 comments)

Who Is Eligible for a VA Jumbo Loan? - 06/03/11 10:41 AM
VA Jumbo Loans are offered in situations where qualified borrowers want to apply for a VA home loan higher than the “typical” VA loan limit of $417,000. That dollar amount is set by county, and since the housing market varies from county to county, there are naturally some locations that have more expensive real estate than others.
In these areas, the VA county loan limit is higher than $417,000, and VA borrowers can apply for a VA Jumbo Loan to buy homes which cost more than the typical limit.
Borrowers must qualify for a VA Jumbo loan the same way they … (1 comments)

How Do I Know My VA Appraiser Is Competent? - 06/02/11 10:26 AM
The appraisal process is one of the most important parts of buying a home with a VA mortgage. While the appraisal does not guarantee a borrower that a given home is free from defects, it does insure the property meets VA minimum requirements and establishes a fair market value for the home. The appraisal cannot be done by just anyone–only a VA approved appraiser can perform the work and submit the forms.
But how does a buyer know that the appraiser is actually qualified to do the job?
VA rules include a vetting process for new VA appraisers. An appraiser can’t … (1 comments)

Good VA Loan Advice from the Cleveland Regional Loan Center - 06/02/11 09:53 AM
VA loans issues are handled by theDepartment of Veterans Affairs, and the VA has established a set of Regional Loan Centers or RLCs across the country to handle local issues in each RLC’s area of jurisdiction.
That jurisdiction is larger than you might think; for example, the jurisdiction area for the VA Regional Loan Center in Cleveland, Ohio includes Ohio, Michigan, Pennsylvania, Indiana, New Jersey, Delaware, Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. That’s quite a bit of territory to cover!
Every VA Regional Loan Center offers tips and advice to homeowners and new VA loanapplicants on getting the … (1 comments)

Can I Get My VA Certificate of Eligibility Online? - 06/01/11 08:41 AM
Veterans who have never applied for a VA home loan before soon learn they need a VA Certificate of Eligibility before the lender will allow them to move forward with a VA home loan.
This isn’t just a requirement set down by the bank, the Department of Veterans Affairs does not approve VA loans for those with no Certificate of Eligibility. The VA requires the veteran to sign and complete VA Form 26-1880, Request for a Certificate of Eligibility.
According to the VA official site at VA.gov, “You can apply for a Certificate of Eligibility by submitting a completed VA Form … (5 comments)

 

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