va loan rules: VA Loan Funding Fees For Joint Loans - 08/27/13 09:39 PM
The VA Loan Funding Fee is one of the expenses of getting a VA loan. All VA loan applicants pay this fee unless they are exempt because the receive or are eligible to receive VA compensation for service-connected medical conditions. For new purchase home loans, there is a VA loan funding fee table that shows the lender what to charge on the transaction based on the amount of down payment, if any, and the nature of the borrower's military service:
When a borrower applies for a VA loan, he or she pays the funding fee up front or may choose to … (0 comments)

va loan rules: VA Interest Rate Reduction Refinancing Loans: Who Can Apply - 08/26/13 11:51 PM
In recent weeks we've fielded several questions from readers about VA loan refinancing with the VA Interest Rate Reduction Refinancing Loan, also known as a VA Streamline Refinance or IRRRL.
There are many situations where a borrower might need to apply for a VA IRRRL and initiate a change from the original loan at the same time. For example, in cases where a veteran is going through a divorce and needs to get a loan in his or her name only, or in situations where the veteran borrower wants to transfer the loan into the name of the spouse.
VA loan … (0 comments)

va loan rules: VA Loan Reader Questions: Refinancing A VA Loan Without the Spouse - 08/25/13 11:05 PM
A reader asks, "My wife has moved out, but will not agree to remove her name off deed. What need to know is what can I do in refinancing the VA loan since her name is not signed for the loan, in which the payment statements only come in my name? I do not want to walk away from my loan agreement, what are my options?"
The answer to this question depends on several factors including state law, which we cannot speak to here. It's best to consult a legal expert for assistance in situations like these as state law may … (0 comments)

va loan rules: VA Loan Myths and Facts On Occupancy - 08/22/13 11:41 PM
We've received a great deal of questions lately about VA loan occupancy requirements. There are plenty of myths, rumors, and half-truths floating around about the nature of VA loans and the occupancy requirement. What do VA loan rules actually say about the law on occupancy and what does a future VA borrower need to understand about this very important requirement? VA loan occupancy requirements are described in VA Pamphlet 26-7, Chapter Three, Section Five. Titled, "The Law On Occupancy", this section has the definitive statements borrowers need to know about purchasing and occupying a home with a VA mortgage loan.
According to … (0 comments)

va loan rules: VA Loan Answers: What You Cannot Use A VA Loan For - 08/21/13 10:55 PM
In our last blog post we examined the acceptable purposes for a VA loan as described in VA Pamphlet 26-7, the VA Lender's Handbook. The VA has a detailed list of acceptable purposes for a VA loan. But in the same way that the VA has described what it allows a VA loan to be used for, it also has a list of ineligible loan purposes.
What does the VA expressly forbid a VA home loan to be used for? The list is not quite as long as the list of eligible purposes, but does give the reader a good idea … (0 comments)

va loan rules: VA Loan Answers: What You Can Use A VA Loan To Purchase - 08/21/13 10:53 PM
For those who have never used a VA loan before, there can be some misunderstanding about the VA loan program in general. Some of our most commonly asked questions involve what kinds of loans the VA is willing to guarantee. Some want to know if the VA will insure a personal loan, a cash-out or home equity type loan, or debt consolidation loans.
The Department of Veterans Affairs has created the VA loan program for one purpose--to allow eligible borrowers who have served their minimum time in uniform to apply for a VA home loan or refinance a home loan. The … (0 comments)

va loan rules: VA Loan Reader Questions: The Occupancy Requirement - 08/21/13 12:48 AM
A reader asks, "I feel like the home I’ve purchased with my VA loan is too big for us right now and I’d like to consider getting into something more our size. I don't want to sell it because when we start having kids it will be perfect. I’ve lived in the house for over a year and under one year and have plenty of entitlement left because my country rates over 840k and my house was only about 230. Can I buy something the more manageable with a VA loan and rent out the house I currently live in?"
In … (0 comments)

va loan rules: VA Streamline Refinancing: Maximum Loan Amounts - 08/20/13 01:06 AM

A VA streamline refinance (also known as a VA IRRRL) allows borrowers with existing VA mortgages to refinance into a lower monthly payment or a lower interest rate (or both) without a VA-required credit check or VA-required appraisal in most typical cases (the lender may require one or both depending on the rules of the financial institution).
When it comes to the maximum loan amount for VA Streamline Refinance loans AKA VA Interest Rate Reduction Refinancing Loans (VA IRRRLs), VA loan rules have this guidance for the loan officer as described in VA Pamphlet 26-7, Chapter Six.
It says, "There … (0 comments)

va loan rules: VA Loan Eligibility and VA Loan Approval - 08/19/13 01:16 AM
Before a VA borrower can make an offer on a house for sale, there's an important step in the process of getting a VA loan that must be accomplished. That step is establishing the borrower's eligibility for the VA mortgage and getting the lender a copy of the borrower's VA Certificate of Eligibility or COE.
The lender can actually help the borrower do this, so the process can be as simple as asking for the lender's help and working together to supply the required proofs of service and other details needed to generate the borrower's COE. But in some cases borrowers … (1 comments)

va loan rules: VA Joint Loan Answers: Credit Issues - 08/15/13 10:14 PM
When two or more veterans apply for a VA loan together, both or all of the applicants using their VA loan entitlements, the transaction is known as a VA joint loan. There are many reasons why more than one veteran might want to team up on a VA mortgage, but there are some issues to be aware of when applying for a VA mortgage loan in this way.
All veterans using their entitlement on the loan are required to certify they will use the property as their primary residence. VA loan occupancy rules in this area are clear. And in the … (1 comments)

va loan rules: VA Loans Between Two Or More Veterans - 08/15/13 10:02 PM
VA loans between two or more veterans are called "joint loans". Specifically, the VA Lender's Handbook describes joint loans in Chapter Seven as, "A loan involving two veterans who are not married to each other, and both using their entitlement." A VA joint loan can also mean, "any other type of joint loan involving only veterans, each of whom uses his or her entitlement."
Chapter Seven adds, "It can include loans to:
the veteran and the veteran’s spouse who is also a veteran, if both entitlements will be used, or three, four, or more veterans, all of whom will use their … (0 comments)

va loan rules: The VA Loan Eligibility Requirements for Surviving Spouses - 08/14/13 11:14 PM
The VA official site says surviving spouses of military members who died on active duty or as a result of military service may be eligible for the VA home loan benefit. The first step in claiming this benefit is to apply for eligibility.
The VA official site lists a set of procedures needed to establish eligibility for surviving spouses, saying "...you will need a Certificate of Eligibility (COE). The COE verifies to the lender that you qualify for a VA-backed loan. This page describes the evidence you submit to verify your eligibility for a VA home loan and how to submit … (0 comments)

va loan rules: VA Loan Reader Questions: VA IRRRL Scam? - 08/13/13 09:56 PM
A reader asks, "My husband relieved a letter saying that they were compelled to notify us that our mortgage with Crescent Mortgage which was bought by Wells Fargo, has been tagged for inclusion in the VA IRRRL program. Then it gives a mortgage and statement number which they claim is ours (and it’s not)."
"They also advise to call the department within the next 5 business days from receipt if the notice. I haven’t called yet because I’m very skeptical but we would love to lower our payment if this wasn’t a scam. If you could shed some light on this … (0 comments)

va loan rules: VA Loan Reader Questions: Defects in the Home Purchased with a VA Loan - 08/12/13 11:49 PM
A reader asks, "A family friend just purchased their first home in Virginia and closed a couple days ago, her husband is currently on deployment with the Navy, he will be back in November 2013. His wife just moved into the home with their 2 year old son… she has discovered the home is in no condition for them to live in, the roof leaks as it’s currently raining in Virginia, the appliances don’t work, amongst other problems…"
"...she did a final walk-thru the day it closed because the agent cancelled it the days before. Where are the fiduciary responsibilities this … (0 comments)

va loan rules: VA Loan Answers: Funding Fees for Joint VA Mortgages - 08/09/13 02:09 AM
In a recent blog post we discussed the rules for VA joint loans, which are described as VA loans made between a veteran and non-veteran (who is not a spouse) or more than one veteran using VA loan entitlement on the mortgage.
One issue that comes up when discussing VA joint loans is how the VA loan funding fee is paid. Who is responsible for the VA loan funding fee in these cases, and for how much?
VA loan rules in VA Pamphlet 26-7, Chapter Seven cover these issues in their entirety. In situations where a veteran and non veteran are … (0 comments)

va loan rules: VA Loan Questions: Property Standards - 08/07/13 08:03 PM
A reader asks, "I'm a Real Estate Broker in Chicago. I have a new client who is looking for a home and will be using a VA loan. My question is, what condition does a property have to be in to qualify for a VA loan. I know a straight FHA loan is pretty strict on property condition."
The Department of Veterans Affairs describes the minimum standards a home must meet in order to be approved for a VA loan guaranty in VA Pamphlet 26-7. These rules are found in Chapter 12, Minimum Property Requirements, which begins with the following:
"VA … (2 comments)

va loan rules: VA Loan Rules For Joint Loans - 08/07/13 08:02 PM
There are some common questions about VA loans between a veteran and non-veteran, or between more than one veteran where all borrowers are using VA loan entitlement. How does the VA handle these situations when it comes to the use of a veteran's entitlement for his or her VA mortgage?
The explanation may sound deceptively simple--the VA simply divides the entitlement equally when it comes to VA loans where multiple veterans are using their VA loan benefit. The VA loan funding fee and use of entitlement are divided among all veterans on the loan.
According to VA Pamphlet 26-7, Chapter Seven, … (1 comments)

va loan rules: VA Loans and Title Restrictions - 08/06/13 10:47 PM
In general, the Department of Veterans Affairs VA Loan program does not guaranty loans that restrict the borrower's ability to sell or dispose of the property.
VA loans are assumable, meaning the owner can allow another person to assume responsibility for the loan with the participation of the lender, and there should be no restrictions on the owner's ability to sell the home. That's one reason why the "right of first refusal" clause in condo association agreements causes so much trouble for those who want to get a condo project on the VA approved list.
But there may be cases where … (1 comments)

va loan rules: VA Loan Questions: Buying a Home With Remaining VA Loan Entitlement - 08/05/13 09:50 PM
A reader asks, "Our landlord has a VA loan. He has had it for over 10yrs and we rent from him. Can he buy another house with a another VA loan for his self to live in? I am doing this for him. Thanks."
While this question may seem a bit unclear, it seems the reader wants to know if the landlord is able to apply for a new VA home loan while paying on an existing VA mortgage. There are two factors at work here with regard to VA loan rules that must be understood. One is the VA rule … (0 comments)

va loan rules: VA Loans Maximum Maturity Dates - 08/01/13 11:06 PM
One important question some newcomers to the VA loans program have about VA insured mortgages involves the length of the VA home loan; what's the longest amount of time a borrower can apply for with a VA mortgage?
According to the VA Lender's Handbook, non-amortized loans have a maximum maturity of five years. All amortized VA mortgages have a maximum maturity of  30 years and 32 days. VA loan rules specify that, "...all VA loans must be amortized if the maturity date is beyond 5 years from the date of the loan. Loans with terms less than 5 years are considered … (1 comments)

 
Bruce Reichstein, FHA / VA One-Time Close Loans - Nationwide (www.OneTimeClose.com)

Bruce Reichstein

FHA / VA One-Time Close Loans - Nationwide

Houston, TX

More about me…

www.OneTimeClose.com

Address: 5850 San Felipe, Suite #500, Houston, TX, 77057

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