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va home loan: When The VA Loan Does Not Close - 05/29/12 04:47 AM
VA home loans involve a set of fees and expenses. Borrowers are responsible for a variety of these expenses as described in the VA Lender’s Handbook. Chapter Eight, “Borrower Fees and Charges and the VA Funding Fee” describes things the borrower is responsible for paying such as flood zone determination, appraisals, and the lender’s flat fee.
It also describes a list of things that must not be charged to the borrower, such as legal representation fees for the lender or charges already covered by the lender’s flat fee.
In short, the borrower has a regulated, fairly predictable list of fees and … (0 comments)
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va home loan: The VA Loan No Accomodation Rule for Appraisals - 05/25/12 04:58 AM
When it’s time to start the VA home loan process, the borrower fills out an application, submits to a credit check, and has employment and income verified.
First time home buyers may feel a lot of scrutiny with that first home loan application, but that level of attention is not reserved for the borrower alone–the VA appraisal process also gives attention to the property to be purchased with a VA guaranteed home loan.
The Department of Veterans Affairs has a list of rules and requirements when it comes to appraising a home and the surrounding property, rules which protect both the … (0 comments)
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va home loan: VA Loan Appraisal Fees and Timeliness Requirements - 05/24/12 05:27 AM
One of the most frequently asked questions about VA home loans is a two-parter. “How much do VA appraisals cost and how long do they take?”
Unfortunately, there’s no set answer to either–VA appraisal fees vary depending on the market you’re in and what is considered typical for one section of the country may be quite different than another.
For example, VA appraisal fees on a single-family home in Oklahoma or Texas are listed at the time of this writing at $400. But for North Dakota, the fee on a single-family home appraisal is $450. In Hawaii, the fee is $525 … (0 comments)
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va home loan: VA Loan Reader Question: Am I Obligated To Sell My Home? - 05/17/12 07:19 AM
A reader asks, “If I’m the seller, and the VA value after the appraisal is lower than what I’m asking, do I have any right to refuse the sale with this buyer or not? What options do I have if I want to cancel the sale at this moment? The VA just appraised my house last Tuesday.”
VA loan requirements stipulate that the following “escape clause” be added to a commitment to purchase:
“It is expressly agreed that, notwithstanding any other provisions of this contract, the purchaser shall not incur any penalty by forfeiture of earnest money or otherwise or be … (1 comments)
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va home loan: VA Loan Appraisals For Older Homes - 05/16/12 06:57 AM
A reader asks, “What do we need to know about older homes in order to obtain VA financing. For example…does VA consider foundations of rock and mortar? Are there any age requirements for furnaces, electrical panels, etc.”
“We are thinking of looking in town for a property which would have city water and sewer. Is there any problem with that? Also, is there any particular property/lot size? I would appreciate any information you may give.”
These are important questions for anyone considering the purchase of an older home. Plenty of areas including New York, Chicago, Cleveland and similar markets have a … (1 comments)
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va home loan: Selling a Home Purchased With a VA Guaranteed Home Loan - 05/15/12 06:57 AM
Some of our reader questions involve the ability to sell the home. Does having a VA guaranteed home loan restrict the borrower from selling the property? VA officials are asked this often enough to include it in a list of frequently asked questions about VA loans. Here’s the official word from the Department of Veterans Affairs at VA.gov:
“Q: Does having a VA loan limit a veteran’s right or ability to sell the property?
A: No. A veteran may sell the property to a veteran or non-veteran at any time. However, if the loan was closed after March 1, 1988, and … (1 comments)
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va home loan: Condo Eligibility For VA Appraisal and Loan Approval - 05/11/12 05:36 AM
Some of the most common questions about VA condo loan approval have to do with condo project approval and appraisals of condo units. Some borrowers who want a VA guaranteed home loan for a condominium unit don’t know the VA policy when they start their search for a home–what do VA rule say about condo projects?
The very first thing a potential VA loan applicant should know is that a condo project must be “acceptable to VA before any unit in the project can be eligible for VA loan guaranty”.
That means the condo must either be on the VA approved list or … (0 comments)
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va home loan: VA Loans and Credit Problems - 05/02/12 06:23 AM
A reader asks, "My credit is not so good due to a student loan...it was canceled out but it still on my credit report and for some reason it hasn't been removed….with that my credit score would be rather decent….it would be nice to know how to move forward with this issue…..can anyone help me?"
VA home loans require the same type of credit checks and verification procedures as any other major credit line, and requesting credit reports is one of the most basic steps in the VA loan approval process. Home loan experts urge borrowers to begin preparing for any … (1 comments)
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va home loan: VA Appriasal Rules: State Requirements - 05/01/12 06:33 AM
We get many questions about VA appraisals. Some of the most common include specific queries about conditions such as peeling paint, houses equipped with fuse boxes, homes with septic tanks or well water systems, and many other topics.
VA appraisals are governed by a set of rules established by the Department of Veterans Affairs, but they are also guided by state and local building codes and other requirements, too.
The VA doesn’t publish or maintain the rules for each individual state, county, or township; instead it simply requires the appraiser to apply the state and local requirements as needed with the … (1 comments)
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va home loan: VA Loan Reader Questions: What Happens If the Borrower Dies? - 05/01/12 06:14 AM
A reader asks, “What happens to a VA loan when the veteran dies and the spouse is not on the loan?”
The Department of Veterans Affairs official site addresses this question directly in a section called Post-Loan Frequently Asked Questions. According to the VA, this is common enough question to warrant inclusion in its FAQ:
“Q: If a veteran dies before the loan is paid off, will the VA guaranty pay off the balance of the loan?
A: No. The surviving spouse or other co-borrower must continue to make the payments. If there is no co-borrower, the loan becomes the obligation … (0 comments)
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va home loan: VA Loan Reader Questions: Maximum Mortgage Amounts - 04/30/12 06:03 AM
A reader asks, “I want to buy a home in Mesa, Maricopa County, Arizona, the zip is 85207. How would I find out the maximum amount of mortgage I could borrow? Is this a jumbo loan area? Are the fees any higher for jumbo loans? Are the fees tax deductible? Thank you for any information.”
There’s a big difference between the maximum amount a borrower can apply to get and how much of that loan money the VA will guaranty.
Technically speaking, there is no limit in the VA rules to how much the borrower can apply for, but realistically speaking … (0 comments)
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va home loan: VA Loan Reader Questions: Occupancy Requirements - 04/27/12 06:32 AM
A reader asks, “My husband retired in 2006 after serving 22 years in the US Army…we have found a home in Augusta that we would like to make ours.”
“We are hoping that my husband’s (two hour) job commute will not negate this sale…While working away from Augusta, my husband stays in a small house owned by my father, so there are no extra living expenses involved. Comments? Advice?”
Though the reader doesn’t ask directly, it seems as though the question is whether the commute would affect the loan and whether VA loan occupancy requirements might be violated due to the circumstances mentioned … (0 comments)
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va home loan: VA Interest Rate Reduction Refinancing Loans: Closing Costs Included in the Loan Amount - 04/26/12 06:32 AM
VA Interest Rate Reduction Refinancing Loans are designed to help lower interest rates, monthly payments, or both. The Department of Veterans Affairs rules for these loans states:
“An IRRRL is a VA-guaranteed loan made to refinance an existing VA-guaranteed loan, generally at a lower interest rate than the existing VA loan, and with lower principal and interest payments than the existing VA loan. Generally, no appraisal, credit information or underwriting is required on an IRRRL, and any lender may close an IRRRL automatically.”
Since lowering payments and making the VA mortgage more affordable is the whole point for many borrowers considering … (0 comments)
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va home loan: VA Loan Seasoning Periods Following Short Sales, Foreclosures, and Bankruptcy - 04/25/12 06:44 AM
In response to a blog post about VA loan seasoning periods, a reader asks, “So how do we know if we will have to wait two or three years?”
This question references a minimum two-year seasoning period before a borrower can apply for a new VA home loan after a bankruptcy filing, short sale, or foreclosure. This two year wait is only negotiable in cases of Chapter 13 bankruptcies.
We cover the difference between Chapter 7 and Chapter 13 in a different blog post, but VA loan rules basically state that a borrower could be allowed to apply for a new … (0 comments)
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va home loan: VA Loan Reader Question: Down Payment Assistance? - 04/23/12 05:53 AM
A reader asks, “I have pre-approval for a house, valued at 59,900. I need help with down payment. Can I get help that is not a loan?”
This reader may have heard about down payment assistance programs offered by charitable organizations to qualified borrowers applying for FHA home loans, and assumed there might be similar programs for VA guaranteed loans. Down payment assistance programs were once offered under names like Ameridream, Grant America, and Nehemiah. But a bill passed back in 2008 forbids such down payment assistance.
In 2008, H.R. 3221, the Housing and Economic Recovery Act, was signed into law. … (0 comments)
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va home loan: VA Loan Rules: Spouse Income - 04/20/12 05:12 AM
One frequently asked question about VA home loans involves whether a spouse’s income can be counted on the VA loan application for the purposes of calculating the debt-to-income ratio.
It is easy to assume that a VA loan application with spouse income included would be stronger than without it; the combined incomes show more earning power and if the amount of debt is well within the VA requirements it would seem like a logical choice. In fact, VA loan rules instruct lenders specifically, “Verify and treat the income of a spouse who will be contractually obligated on the loan the same … (3 comments)
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va home loan: How Do I Apply For Specially Adapted Housing Benefits From The VA? - 04/19/12 06:39 AM
The VA loan benefit includes several options for disabled veterans with injuries or handicaps recognized by the Department of Veterans Affairs. If you receive, or are eligible to receive VA compensation for these disabilities, you may also be entitled to VA loan benefits above and beyond those typically available for eligible vets.
For example, did you know qualifying disabled veterans are exempt from paying the VA loan funding fee? This exemption is not automatic–it must be applied for–but can save qualifying borrowers thousands of dollars on their VA home loans. Qualifying veterans may also be able to participate in VA specially … (1 comments)
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va home loan: VA Refinancing Loans - 04/17/12 06:45 AM
The VA Lender’s Handbook describes two basic types of VA refinancing loans. One is the VA Interest Rate Reduction Refinancing Loan, which features no money back to the buyer and can be done in “streamline” mode for those who already have VA mortgages (under the right conditions).
Another is the VA Cash-Out Refinancing Loan, which as the name implies does feature cash back to the borrower, requires a new credit check and other underwriting requirements.
But the Department of Veterans Affairs also has rules for “other refinancing loans”, which are described in Chapter 16 of the VA Lender’s Handbook.
According to … (2 comments)
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va home loan: VA Loan Reader Question: Will a Lack of Credit History Hurt A VA Loan Application? - 04/16/12 05:51 AM
A reader asks, “My husband is a veteran with a very good job and we would like to apply for a VA Loan in a few years, but he does not have much when it comes to credit history. We recently purchased a vehicle in his name, which will be paid off within 5 years.”
“I was curious if that would be considered to be a major help with building a good credit that will help when it comes to building credit history for a VA Loan?”
There are two things borrowers should remember when considering a VA home loan. The … (0 comments)
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va home loan: VA Loan Questions: VA Loan Funding Fee Exemptions - 04/13/12 12:03 AM
Veterans who receive, or are eligible to receive VA disability benefits are also eligible to be declared exempt from paying the VA loan funding fee. That fee is 2.15 percent of the loan amount for no-money-down VA mortgage loans–a substantial savings for the exempt veteran.
This is a topic we’ve covered here many times before, but some VA loan applicants still on active duty naturally want to know if they are exempt from paying the funding fee because of service-connected injuries or illnesses. The Department of Veterans Affairs official site says yes, VA borrowers on active duty can under the right … (0 comments)
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Bruce Reichstein - Expert VA Loan Officer for 23 years: www.VALoans.com
Houston,
TX
More about me…
VALoans.com - Expert VA Loan Officer - Agent Trusted Lender
Address: 7915 Westglen Drive, Houston, TX, 77063
Office Phone: (800) 317-2993
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