Real estate blog entries tagged with va application by Bruce Reichstein, FHA / VA One-Time Close Loans

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va application: Qualifying For VA Loans - 03/27/13 08:36 PM

We answer many reader questions about VA home loans, including eligibility questions. One of the most commonly asked questions about VA home loans involves whether a specific situation disqualifies a borrower from VA loans or whether exceptions may apply.
For example, many assume that a VA loan applicant is required to have an Honorable discharge. But VA loan rules basically state that as long as a borrower's military service did not end with a Dishonorable classification, it's still possible to get a VA loan provided other qualifying criteria are met.
Borrowers who serve for less than 24 months (under the guidelines … (0 comments)

va application: VA Loans Vs. Conventional Mortgages - 06/22/11 03:15 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)

va application: VA Joint Loans: Occupancy Rules - 06/15/11 02:52 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 application: VA Loan Benefit Basics: VA Loan Guaranty and Interest Rates - 05/31/11 02:17 AM

In part one of this post, we discussed the VA loan program, down payments and the difference between what the VA allows for no-down-payment VA mortgages and what the lender may need to meet secondary market requirements. There are other basics a first time borrower should also know–borrowers in the early stages of researching a loan often need additional details about the nature of the VA loan program and how it works.
The term “VA loan” is a bit of a misleading one; the Department of Veterans Affairs does not lend money to veterans, instead it insures the loan offered by … (3 comments)

va application: How the Lender Examines Your VA Loan Application Data - 05/20/11 02:31 AM

When a vet or current military member fills out an application for a VA home loan, there are a lot of requirements-the borrower must provide income data, residency information (past and present), answer questions about occupancy intent and submit to a credit check. Getting approved or pre-approved for a VA insured mortgage means providing a lot of detail, but what is the lender looking for with all that information and how does the lender view what is submitted?
VA rules for lenders processing a VA loan application include a set of objectives the lender must meet. Those objectives include verifying that … (1 comments)

va application: VA Appraisals: How Long Until a Notice of Value Expires? - 04/29/11 01:25 AM

VA rules state that any property to be purchased with a VA insured loan must have a notice of value assigned after being reviewed by a VA assigned appraiser. The notice of value or NOV for short allows the VA to issue a VA loan amount for the purchase based on the fair market value of the property.
But once the property is appraised, how long does that NOV remain in effect before a new one is required? If the borrower waits too long to decide on the loan, will he or she be required to pay for another NOV in … (1 comments)

va application: What's The Difference Between The VA Appraiser and the Bank's Staff Appraisal Reviewer? - 04/13/11 02:54 AM

When a borrower chooses a home to be purchased with a VA insured mortgage, the property must be appraised so it can be assigned fair market value and a loan amount can be determined. But the process isn’t as simple as having the appraiser look over the home, write a report and submit it to the Department of Veterans Affairs. The appraisal report is reviewed by the lender first before it is passed along to the VA.
In fact, VA rules say the lender must certify the appraisal has been reviewed in writing, complete with a signature from the lender’s staff appraisal … (1 comments)

va application: What a VA Borrower Can Learn from a Home Inspection - 04/11/11 03:08 AM

VA borrowers who have found a home they want to buy must have the property appraised so the VA can assign a market value to the property, but the second step in having the home evaluated is an optional (but very important) home inspection.
The borrower is required to pay for this inspection which can uncover issues or problems not detected in an appraisal. The borrower should never rely on an appraisal as the final word on the condition of the home–the VA does not promise the home will be free of problems or defects. The inspection is a much closer … (1 comments)

va application: What Happens to VA Home Loans if The Government Shuts Down? - 04/08/11 02:02 AM

At the start of April 2011, House and Senate officials found themselves still working to pass a budget to keep the federal government running. As time runs out, a shutdown of government services and programs is a very real possibility. Many veterans and government workers pay close attention to the headlines when a government shutdown becomes possible when a federal budget can’t be worked out in time.
If the White House vetoes a stopgap spending measure to extend the work of the government, a shutdown is possible–and that could have implications for those applying for VA loans or trying to pay … (1 comments)

va application: Why Rank Matters When Applying for VA Home Loans - 04/07/11 02:45 AM

Retired and separated military people applying for VA home loans use their civilian income plus any pay or benefits they get as a result of their military service. When applying for a VA loan, retired/separated veterans should include any additional anticipated income from promotions, bonuses, or other funds they may get in the course of their employment.
But what about current military members? It’s easy to forget about an upcoming promotion when the date is several months or longer in the future, but any additional income that an increase in rank brings should be documented to help the lender accurately determine debt-to-income ratios and … (2 comments)

va application: VA Loan Appraisals for Home Improvement Loans - 03/28/11 03:15 AM

VA borrowers often apply for VA home loans for improvements, repairs or alterations to a property owned and occupied as the borrower’s primary residence. A VA refinancing loan is a good example, especially if the borrower is applying for a VA-guaranteed Energy Efficient Mortgage. EEMs offer up to $6,000 worth of loan money specifically for approved energy efficient upgrades to the property.
In cases where a VA loan is offered for improvement or repairs of the property, the Department of Veterans Affairs rules say that property eligible to receive a VA appraisal. (Not every situation will require an appraisal.) When an appraisal is needed and the improvements are substantial, the VA will decide on a case-by-case … (1 comments)

va application: All About VA Loan Assumption - 03/25/11 02:00 AM

One of the attractive things about VA home loans is that they are assumable–a veteran can “sell” the home by allowing a third party to assume the VA loan payments and responsibility for the mortgage. According to the Department of Veterans Affairs, “Most homes purchased or refinanced with a VA guaranteed home loan are eventually sold with the mortgage paid off at closing. Under certain circumstances, it is possible for a veteran to sell the property subject to the assumption of the VA guaranteed loan payments by the purchaser.”
The person assuming the VA loan payments does not have to be … (2 comments)

va application: VA Loans: What Concessions Are Sellers Allowed To Offer? - 03/08/11 01:48 AM

In our last blog post we discussed seller concessions, which can be offered to someone wanting to buy a home with a VA loan as an incentive to purchase. The VA defines seller concessions as, “anything of value added to the transaction by the builder or seller for which the buyer pays nothing additional and which the seller is not customarily expected or required to pay or provide.”
But the VA caps seller concessions at four percent of the reasonable value of the property. It’s worth noting that the concession cap is placed on four percent of the property value and … (0 comments)

va application: VA Loans: Interpreting Your Employment and Income Data - 02/15/11 12:58 AM

There can be some mystery when applying for a VA loan, especially if it’s your first time. How does the lender interpret the information you enter on a VA mortgage loan application? Is there an arbitrary system the lender compares your details with to see if you qualify for a loan? Or is the process more flexible than simply comparing your information to a checklist?
Fortunately there is plenty of flexibility built into the process. The Department of Veterans Affairs rules for loan officers has plenty of areas where the lender is required to use their judgment as opposed to relying on a specific type … (1 comments)

va application: The Start of a VA Home Loan - 02/04/11 02:11 AM

When a veteran wants to start a VA mortgage loan, the first thing they’re asked to do is to provide, or apply for, a VA Certificate of Eligibility.
Some first-time home buyers don’t come to the application process with the COE in hand, but getting one is a process the vet can do at home or with the help of the lender. In many cases the lender may be able to submit the request and get the certificate, then start the VA loan application process very quickly.
In other cases it may take time, especially when the veteran doesn’t have the right proof of service.
Active duty service members … (3 comments)

va application: Committing to a VA Home Loan Pre-Appraisal - 02/02/11 01:33 AM

There are many different ways to buy a home using a VA mortgage loan. Sometimes the buyer finds a home they really want, work with the seller to come to an agreed-upon price and other terms, and then agree in writing to the purchase of the home. But what happens if all this occurs prior to the property being appraised by a VA-approved professional and establishing the fair market value of the home?
The rules of VA mortgages include a stipulation that the VA will guaranty a home loan for the appraised value as listed on the Notice of Valuation or … (3 comments)

va application: VA Loans: When the Borrower is Allowed to Apply - 01/25/11 02:04 AM

VA home loans require the borrower to apply for a VA certificate of eligibility–the official document from the Department of Veterans Affairs stating the borrower has served enough time in the military to qualify for their VA home loan benefits. In the case of retired or separated military members, eligibility is conditional on the type of discharge received–generally the borrower must have retired or separated under conditions described by the VA as “not dishonorable”.
For current military members, the VA requires proof of active or Guard/Reserve status including the length of the current commitment and time already served.
Borrowers can apply … (1 comments)

va application: More Resources for VA Borrowers - 01/21/11 02:03 AM

In our last blog post we listed some recommended reading for VA home loan applicants including the Fair Housing Act, and the Consumer Credit Protection Act .
A lot of the resources we listed in the last blog post had to do with anti-discrimination laws, but there are also some regulations house hunters should know about where lending is concerned. Since 1969, a set of laws has been put on the federal books that protect VA loan applicants and other real estate buyers from misleading, unfair and dishonest business practices in the financial sector.
One of those is the Truth in … (1 comments)

va application: The Benefits of a VA Home Loan - 01/12/11 02:18 AM

For veterans and current service members, there are plenty of advantages and benefits to getting a VA home loan instead of seeking a conventional mortgage. In fact, the VA lists a collection of those benefits on its official site to help new house hunters see at a glance what the Department of Veterans Affairs has to offer.
Some of those perks are easier to understand than others–everyone should know what “equal opportunity” means when looking over that list of benefits, but what some borrowers new to the house hunting process might not understand what “negotiable interest rate” means at first glance. … (1 comments)

va application: VA Property Appraisal: Which Properties Are Eligible? - 12/27/10 01:15 AM

In order for a property to be approved for a VA home loan, it must be appraised by a VA-approved professional. Having the property appraised isn't just about establishing the fair market value of the home, it is also to insure the home lives up to VA health and safety standards. Once the property is appraised, the VA assigns the official Notice of Value and the VA mortgage application process can move forward. But some properties are not eligible to be appraised. The VA has standards that apply--any property that doesn't meet the initial standards won't be approved for inspection.
The … (1 comments)

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