va rules: VA Loan Answers: Using VA Loan Entitlement For A Second or Third Home
- 06/06/13 10:13 PM
A reader asks, "I have used the VA loan on two houses that have been paid off. Is the limit by VA two loans, or will they allow more if the loans have been paid?"
The rules for VA loans are spelled out in The VA Lender's Handbook, also known as VA pamphlet 26-7. Chapter Two, Section Six has the answers to this reader question.
According to Chapter Six, the borrower is normally required to sell the home purchased with a VA loan before eligibility can be restored for another home loan purchase. But VA loan rules do allow the borrower to … (0 comments)
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va rules: VA Loan Rules: IRRRL Underwriting
- 06/05/13 09:48 PM
VA loan options include the choice to refinance an existing VA mortgage using a VA Interest Rate Reduction Refinance Loan or IRRRL. The VA IRRRL rules include the following statement found in VA Pamphlet 26-7, Chapter Six:
"No credit information or underwriting is required unless:
the loan to be refinanced is 30 days or more past due (see section 2 of this chapter) or, the monthly payment (PITI) will increase 20 percent or more." Some borrowers are confused by this rule, which basically states no credit check is required for a VA IRRRL unless one or both of the following circumstances … (0 comments)
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va rules: VA Loan Reader Questions: VA MPRs and Building Codes
- 06/04/13 09:15 PM
A reader asks, "I am a Real Estate Broker working with a couple that wants to use a VA loan to purchase their home—which happens to be a barn conversion; it is now a large 4 BR/2 bath home."
"It is vinyl-sided, has 1.5 stores, a metal roof, front porch, etc. Will this pose any problems since it was not always a “traditional” style of home? There is a 4-stall barn on the property, so this structure is definitely not anything other than a single-family home. Thank you!"
While it's impossible to say (based on the contents of a reader question) whether … (2 comments)
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va rules: VA Loan Reader Questions: Refinancing For Surviving Spouses
- 06/04/13 06:54 AM
A reader asks, "I am an unremarried surviving spouse whose Active Duty husband died in the line of duty last year. Our home which is a VA loan, is the home we purchased in 2008 and the home I have been living in since he died. I have been making the mortgage payments on time, but still under my husband’s name if you will."
"Due to my my husband being the major breadwinner everything was based on his income and credit. I have no credit card utilization, making my credit score 572. I want to apply for the VA irrl in my … (0 comments)
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va rules: VA Loan Reader Questions: Is an Escrow Account Required?
- 06/02/13 10:47 PM
A reader asks, "I just finalized our refi using VA loan at 15yrs fixed with 2.25 interest rate. I asked the lender about paying the property tax and home insurance--if I need to have an escrow account. They said it is required on VA loan. I have setup a saving account for this purpose but im unable to use it, because i want to send the payments to this account in order to pay for the taxes and home insurance. Please advise."
The rules for escrow accounts for a VA home loan are simple. The Department of Veterans Affairs does not require the … (1 comments)
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va rules: VA Loans For Farm Residences: A Reader Question
- 12/06/12 10:19 PM
A reader asks, "I am wanting to purchase a farm with my VA loan, the property has a residence where I will live. Is this possible? I have heard many different things. Any help would be great. Thanks.
The Department of Veterans Affairs does specifically address farm loans in its rules and information pages for borrowers and lenders.
Here's some advice from the VA, which is found in a document called VA-Guaranteed Home Loans For Veterans, in the section titled, "Can A Veteran Get A VA Farm Loan?";
"No, except for a farm on which there is a farm residence which will be … (0 comments)
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va rules: VA Trademarks "GI Bill": Could "VA Loans" Be Next?
- 12/05/12 07:59 PM
The VA official site has announced an interesting development that could affect how veteran benefits are advertised by third party companies.
According to VAntage Point, the official blog of the Department of Veterans Affairs, "For about two years, VA’s online communications team has been closely tracking the advertising and recruitment efforts of for-profit schools looking to bring in GI Bill tuition dollars."
"In some cases, these schools have ensnared Veterans looking for info by using official-looking websites, which funneled potential recruits to those schools without any balanced, objective information...VA announced the next step in the fight against misleading info campaign waged by schools after your … (3 comments)
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va rules: VA Home Owners in Federal Disaster Areas
- 08/19/12 09:44 PM
Recently, the President declared federal disaster areas in three states; Montana, Maryland, Wisconsin all have counties which are now officially recognized as disaster areas. Those are in addition to earlier declarations for counties in Virginia, Minnesota, New Jersey and elsewhere. All in all, it’s bee a rough summer for many home owners in these states and elsewhere.
What do borrowers with VA guaranteed mortgages in these disaster areas need to know about VA policy in such circumstances? The Department of Veterans Affairs has a lot of advice for home owners trying to cope with damage to or destruction of the home:
… (0 comments)
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va rules: VA Loan Reader Questions: Siding, Drywall, and other Appraisal Issues
- 07/10/12 11:35 PM
A reader asks, “I’ve found a home in foreclosure at what I feel to be fair or even better. However there are two places at the base of the siding which have slight rot going up an inch or two. Also one corner eave joint has the same. Structurally the home is sound, cosmetically these areas slightly noticeable but apparent if one is inspecting.”
“Obviously the bank will not do or allow repairs that I know of. Is this a deal breaker? I would repair this eventually especially if the VA made it a stipulation upon purchase, is that even … (0 comments)
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va rules: VA Loan Advantages
- 07/02/12 11:55 PM
The Department of Veterans Affairs recently updated its official site to include an on-line version of its publication, “VA Home Loans – A Quick Guide For Homebuyers and Real Estate Professionals“.
This guide outlines some of the most important features of VA guaranteed home loans; these features include details about the cost-saving benefits of a VA mortgage, some borrower rights, and other crucial details. For example, do you know about the various types of VA loans available to qualified borrowers? They include:
Traditional fixed payment VA mortgages: These VA loans feature constant principal and interest: increases or decreases may be expected … (0 comments)
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va rules: VA Loan Occupancy Rules--What Buyers Should Know
- 06/14/12 10:30 PM
Some of the most frequently asked questions about VA home loans involve the rules for occupancy.
What do the VA loan rules say about taking possession of the home after closing, renting out your home purchased with a VA mortgage to someone else, and refinancing rules? To begin, let’s see what the VA Lender’s Handbook says about basic occupancy requirements. According to Chapter Three, Section Five:
“The law requires a veteran obtaining a VA-guaranteed loan to certify that he or she intends to personally occupy the property as his or her home. As of the date of certification, the veteran must … (1 comments)
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va rules: When The VA Loan Does Not Close
- 05/28/12 09:47 PM
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 rules: VA Loan Reader Questions: Minimum Property Requirements
- 05/13/12 11:44 PM
A reader asks, “I applied for a VA loan and the appraisal was done. The appraisal came back higher than the loan ($30,000 higher), but the lender says I have to make minor repairs to my house before I can proceed with the loan. My question is why do I have to make these repairs when the VA makes loans for home renovations ?”
An entire chapter of the VA Lender’s Handbook is dedicated to what the Department of Veterans Affairs calls Minimum Property Requirements. These requirements are listed to help VA appraisers know what homes should be approved for VA … (1 comments)
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va rules: VA Loan Reader Question: Occupancy Requirements
- 05/09/12 12:07 AM
A reader asks, “If I purchased a home utilizing my VA benefits and for some reason I cannot occupy this home as required by law, what is the penalty or fine if any will be levied against me?”
As a condition of loan approval, VA rules require a borrower to certify in a legally binding document that he or she will occupy the home within a reasonable period (usually 60 days) following the closing of the loan.
For married borrowers, the spouse can move into the home and fulfill the occupancy requirement. Borrowers who know ahead of time they cannot or … (0 comments)
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va rules: VA Home Loan Benefits For Disabled Veterans
- 03/14/12 11:29 PM
Since we’ve had reader questions recently on VA loan benefits for disabled veterans, it seemed like a good time to review those benefits.
Did you know qualifying borrowers with VA-recognized disabilities may be eligible for special consideration for VA insured mortgages? Disabled vets who receive or are eligible to receive VA disability payments may be qualified for an exemption to the VA loan funding fee.
This fee is waived for borrowers who are already on record as receiving VA disability benefits, and the funding fee is refunded to those who are approved later. Borrowers must apply in writing for the refund–contact … (0 comments)
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va rules: VA Loan Questions: Can I Use a VA Loan To Landscape My Property?
- 02/22/12 10:45 PM
A reader asks, “I have never used my VA Loan. Can I use my VA benefits to landscape my yard to include installing a fence? If so how do I apply for the loan?”
VA home loans have a list of approved uses spelled out in the VA Lender’s Handbook. These uses include purchase, refinancing, and rehabbing residential properties intended to be the primary residence of the VA loan applicant.
While VA loan requirements do permit a borrower to simultaneously purchase and repair or rehab a home, it does not allow the borrower to apply for a new purchase VA home … (0 comments)
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va rules: VA Loans and Private Mortgage Insurance
- 09/01/11 04:39 AM
Conventional home loans often require borrowers to pay for private mortgage insurance in cases where the borrower makes a down payment of less than 20% of the cost of the home. VA borrowers don’t have this requirement, which makes a VA home loan more attractive for qualified borrowers.
Private mortgage insurance is usually included in the mortgage payment and may be canceled once the borrower pays of 20% or more of the home loan. It’s a cost that’s required as a part of doing business with a conventional mortgage, and one that, much like a VA loan funding fee, is cheaper … (1 comments)
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va rules: Who Is Eligible for a VA Jumbo Loan?
- 06/03/11 03:41 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)
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va rules: VA Loans and Borrowing in "Good Faith"
- 02/10/11 02:38 AM
In our last post we discussed VA Form 26-0592, the Counseling Checklist for Military Homebuyers, and its contents. Part of that form includes a section where the borrower must certify he or she is borrowing “in good faith”. According to the checklist, “If your loan is foreclosed under circumstances which include such bad faith, you may be required to repay VA for any loss suffered by the Government under the guaranty.”
That much is easy enough to understand, but what circumstances does the Department of Veterans Affairs consider to be “bad faith”?
One is purchasing the home with the intent to allow foreclosure at … (2 comments)
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va rules: How Flexible Are VA Home Loans?
- 01/21/11 02:07 AM
One thing many veterans hear in connection with their VA home loan benefits is how flexible the VA loan system is. Vets also hear a lot of people saying how much more lenient VA loans are compared to conventional mortgages. But how flexible is the Department of Veterans Affairs when it comes to approving VA home loan applications?
According to the VA’s own lender guidelines, the rules are indeed quite lenient up to a reasonable point. For example, consider this quote from the VA Lender’s Handbook for loan underwriting:
“The veteran must have:
· satisfactory credit, and · satisfactory repayment ability … (1 comments)
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A reader asks, "I have used the VA loan on two houses that have been paid off. Is the limit by VA two loans, or will they allow more if the loans have been paid?"
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