VA LOAN INFORMATION FOR HOME BUYERS

VA LOAN info
 
We're often get requests on how to obtain a VA loan which is a zero percent down loans. If you believe that you are eligible, a VA-approved lender can electronically obtain your DD214 - certificate of eligibility - from the VA and then you sign a VA Form 1880.  Your eligibility certificate will remind you of a Car Fax document in that it will show prior use of VA loans and your eligibility status.  You can also check on this yourself on the VA website:  www.benefits.va.gov/homeloans/eligibility.asp. The transaction must be owner occupied only and for the veteran and his immediate family.  If a soldier is deployed, his wife must occupy upon closing.  If you are disabled vet, you do not pay the VA funding fee which covers the lender against claims made in case of default; however, all other veterans pay this fee which can be financed.  Seller contributions towards closing costs can be covered by the seller as well as reasonable loan points that may prevail in an area as well as an extra 4 percent of sales price in seller concessions that can be used for escrows for example.
 
Another question that comes up especially in this market is what can I do if I've had a foreclosure, short sale, or bankruptcy.  I strongly urge you to speak with a loan officer on this in that extenuating circumstances can prevail.   If you've had a full foreclosure where the bank took the house back, you'll have to wait 2 years from date of transfer of the deed to the bank.  If the lender canceled your loan, it's still anywhere from a year to two years, depending on circumstances.  A short sale requires a 2 year waiting period after closing.  A Chapter 7 bankruptcy is 2 years from date you did not pay anything owing, but if you re-establish your credit and paid on time on the agreed-upon payment schedule, it can be as short as a year and up to 2 years.  A Chapter 13 where you pay your debts back on a scheduled payment plan and on time will give you a one-year waiting period.

In the Washington, DC area and surrounding suburbs, a zero down payment VA loan is $818,750 due to the fact Alt-A and other "exotic" loans have disappeared