va loan: VA Loan Rules For Non-Military Income
- 10/14/12 08:33 PM
VA borrowers who are still serving on active have a comparatively easy time verifying income and employment.
That’s not to say they don’t have paperwork to fill out and details to provide, but anyone serving on active duty has the benefit of electronic Leave and Earnings Statements, physical hard copies of same, and other proofs of employment such as a valid military ID card and military references.
Those who aren’t serving on active duty have a bit more to provide. What does the VA Lender’s Handbook say about furnishing proof of non-military income and what is your lender required to do … (0 comments)
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va loan: How VA Growing Equity Mortgages Work
- 10/10/12 08:47 PM
Since the housing market crisis of 2008, the idea of a home with growing equity probably sounds like a dream to many; so many home owners are underwater on their mortgages that the idea of a new purchase loan issued as a “Growing Equity Mortgage” could seem like an unlikely choice at first glance. But with recent headlines on a recovering housing market, rising house prices, and interest rates that are still quite low, could the VA Growing Equity Mortgage make a comeback in the months or years to come?
The VA guidebook for lenders, VA Pamphlet 26-7, describes the Growing … (0 comments)
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va loan: VA IRRRL Rules: Closing the Loan
- 10/09/12 08:52 PM
In other blog posts, we’ve covered an issue surrounding VA Interest Rate Reduction Refinancing Loans–cash back to the borrower.
Unlike VA Cash-Out Refinancing, VA IRRRLs don’t allow the borrower to take cash out on the loan. The nature of the VA IRRRL prohibits this; yet some borrowers may be confused by hearing of other veterans who got money back at closing time on a VA IRRRL. What circumstances would allow this to happen?
VA loan rules for these scenarios are listed in VA Pamphlet 26-7 in chapter six. There, you’ll find the following:
“In a limited number of situations, the borrower … (2 comments)
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va loan: VA Loan Reader Question: Roof Issues
- 09/27/12 09:12 PM
A reader asks, “We are considering a property that is competitively priced as a short sale in Oregon. We went and viewed the property today with our Realtor and she took one look at the roof and indicated that it would not be eligible for the VA financing because of the roof. There were two spots inside the house that we noticed slight discoloration on the ceiling due to water damage. The home was built in 1992.
This would be our very first home purchase, so I am nervous about plopping down the funds for an inspection AND an appraisal only … (2 comments)
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va loan: Pre-Purchase VA Loan Advice
- 09/24/12 09:12 PM
Before you commit to buying a home with a VA mortgage, there are several things the Department of Veterans Affairs wants you to know about; on the official site you will find several Frequently Asked Questions lists with advice on issues to consider before buying.
For example, some VA loan applicants don’t understand the difference between a VA appraisal, which establishes the fair market value of a home and insures the property meets VA standards, and a home inspection which is a top-to-bottom review of the home designed to find any issues, flaws or concerns that might affect the use or … (1 comments)
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va loan: VA Loan Reader Question: Eligibility After Foreclosure
- 09/18/12 09:37 PM
A reader asks, “I am a vet who walked away from my home in 2009 (a BAC-mortgaged property). The foreclosure went down on April 1st, 2011. I have been renting since October 2009. For VA purposes, my 24-month waiting period will be up April 1st of this coming year. I’d like to get back into an affordable and simple home as soon as possible. Not sure if I have to wait until April 1st, or if I have to, is there anything I can do now to look more attractive in the eyes of the lender?”
Let’s take a look at … (0 comments)
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va loan: How Long Does It Take To Get a VA COE By Mail? VA Loan Reader Question
- 09/11/12 09:16 PM
A reader asks, “Two weeks ago I applied in US Mail for a Certificate of Eligibility. To date it has not been received and I’m concerned that this is not being processed in a timely manner; holding up buying a home. Please advise how to follow up or can I apply online after mailing a request?”
The simple answer for this reader question is that two weeks isn’t nearly enough time for the Department of Veterans Affairs to receive, process, and return a request for a Certificate of Eligibility by mail.
Applying for a VA COE by mail is the slowest … (0 comments)
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va loan: VA Loan Rules: Changes to Income Verification
- 09/07/12 12:08 AM
The Department of Veterans Affairs recently changed its requirements for certain types of income verification.
According to VA Circular 26-12-6, changes to VA policy included alterations to employment verification (VOE for short) and pay stub verification.
According to the circular, “Previously, VA guidelines required that any VOE supplied by an employment verification service must be a VA-approved provider. The industry has evolved and as a result VA no longer requires that the employment verification service provider be VA approved. Lenders may use any employment verification service that provides the same information as the “full” verification generated through the Work Number for Everyone.”
… (1 comments)
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va loan: VA Loan Reader Questions: VA Loan Limit Increases?
- 08/15/12 11:04 PM
A reader asks, “I heard the VA limit is increasing for SAN DIEGO COUNTY in 2012. Is there any confirmation of that?”
The Department of Veterans Affairs recently published revised VA loan maximum guaranty limit, which have changed because of the The Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012.
The full details, including revised VA maximum loan guaranty rates for high-cost counties, is available at http://www.benefits.va.gov/homeloans/new.asp. Look for VA Circular 16-12-7, which is available as a .PDF download.
This reader question leads us to another commonly asked question about VA maximum loans; what’s the difference between … (0 comments)
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va loan: VA Loan Reader Questions: Mobile Home Loans
- 08/12/12 11:30 PM
A reader asks, “What is the age cut off on buying a mobile home?”
Assuming the age of the mobile home is the issue in question (some readers do wonder whether there’s an age cutoff or restriction on VA home loans–there is no “maximum age” for VA loan applicants”), we must reference Chapter 12 of the VA Lender’s Handbook for the answer. But first, what is the VA definition of a mobile home or manufactured home? From VA.gov:
“A manufactured home is built on a permanent frame and is made to be moved in one or more sections. It must be … (0 comments)
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va loan: Are Down Payments Ever Required For VA Home Loans?
- 08/06/12 09:52 PM
The no down payment option is one of the most popular features of the VA loan program.
In a time when the conventional home loan market can require some borrowers to put down 20% or more, the VA loan zero down payment option means huge savings for borrowers who take advantage of the that option.
But are there cases where the VA definitely requires a down payment as a condition of loan approval?
According to Chapter Three of the VA Lender’s Handbook, yes.
“Because VA loans can be for the full reasonable value of the property, no downpayment is required by … (3 comments)
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va loan: VA Loan Funding Fee Exemptions and the Certificate of Eligibility
- 08/05/12 09:47 PM
One of the most important benefits associated with the VA home loan program is an exemption from the VA loan funding fee for qualified disabled veterans.
Those VA loan applicants who receive or are eligible to start receiving VA loan disability payments are exempt from paying the funding fee.
The Department of Veterans Affairs requires all VA loan borrowers except for qualified disabled vets to pay a VA loan funding fee, which is at 2.15% for first-time use on no-down payment VA home loans. Many borrowers want to know where to look to see what the VA currently lists them at … (1 comments)
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va loan: VA Loan Refinancing Scams
- 07/29/12 10:53 PM
A reader got in touch with us recently about an incident connected to her VA home loan.
“I have received two letters regarding IRRRL refinance program, saying the inclusion of my loan into the program was part of the ‘economic stimulus program.’ I called and was told my new mortgage payment would be as indicated in the letter I received, but I could read about it when a loan officer showed up at my house in a few days.
I agreed but the gentlemen who showed up at my house was only a notary. I asked what my monthly payment would … (1 comments)
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va loan: VA Loan Questions: 100% Cash-Out Refinancing
- 07/26/12 10:44 PM
A reader asks, “Can you do 100% cash-outVA loan on a primary residence property zoned AR3? If not, can you do any VA loan on a primary residence property zoned AR3? This means the property is used for rural business and residential use.”
In general, according to Chapter Six of the VA Lender’s Handbook, VA cash-out refinancing loans may be issued for up to 100% for qualified borrowers.
“Maximum Guaranty The maximum guaranty for regular (i.e., “cash-out”) refinancing loans is the same as the maximum guaranty for purchase loans. Prior to October 10, 2008, the maximum guaranty had been limited to $36,000. However, guaranty on … (0 comments)
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va loan: Refinancing Conventional Mortgages With a VA Loan
- 07/24/12 11:07 PM
A reader asks, "I am a surviving spouse I have a mortgage through Citimortgage. I am currently one month behind due to being out of work for medical. I have been trying to get a HAMP and principal reduction but keep getting turned down. Can I participate in a VA refinance even though my current mortgage is not through VA but I am VA eligible?"
There are two basic issues to review with regard to this reader's question. The first is whether a surviving spouse is eligible for a VA mortgage. According to the VA official site, on the page titled … (1 comments)
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va loan: VA Loan Reader Question: Non-Veteran Co-Borrowers & Qualification
- 07/16/12 11:22 PM
A reader asks, "My brother does not quite qualify for a home loan by himself, can we get a VA loan together if I was not in the military but my brother was and he will be living in the home? If so do you have a reference that we can show to the loan company?"
This question is too general to answer specifically--there are many reasons why a borrower might not qualify for a VA home loan including credit, employment history or other factors. But in general there are factors any borrower should know about co-borrowing on a VA mortgage … (0 comments)
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va loan: 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 loan: VA Loan Reader Question: What Happened to VA Vendee Financing?
- 07/06/12 12:08 AM
A reader recently asked, “Any word on when the VA Vendee Loan program will return?”
When homes purchased with a VA guaranteed mortgage loans go into foreclosure, the Department of Veterans Affairs ends up owning these properties and later putting them up for sale to offset the costs of the loan default and foreclosure.
When these properties go back up for sale, they are offered with an option to apply for a VA financed loan, available to any qualified borrower–not just veterans. This program is known as Vendee Financing.
But services under the VA Vendee Financing program have been interrupted, as … (4 comments)
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va loan: VA Appraisal Issues and Concerns
- 06/27/12 12:27 AM
Some of the most common questions about the VA appraisal process involve the things an appraiser might write up as needing corrections as a condition of VA loan approval. Some borrowers–and sellers–are confused by areas listed in the VA Minimum Property Requirements (MPRs). For example, why is peeling paint considered a required connection as opposed to a cosmetic issue?
The paint issue can be a serious sticking point in a VA appraisal for one important reason–VA MPRs are very strict on this subject. The Colorado VA Regional Loan Center rulebook for VA appraisers states,
“Lead Based Paint – This constitutes an … (0 comments)
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va loan: VA Loan Reader Question: How Do I Get A VA Home Loan?
- 06/24/12 11:37 PM
A reader asks, “I’m trying to understand the process of buying a home with a VA loan. Do I go and find the house that I like first and then apply? Who specifically do I talk to for the loan? I am a Gulf War era veteran and want to buy a first time home. I need help with this process.”
There are different ways a VA loan applicant can approach the VA home loan process. Some borrowers prefer to get pre-qualified for a VA loan amount before they commit to a home purchase, while others may choose to find a … (1 comments)
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VA borrowers who are still serving on active have a comparatively easy time verifying income and employment.
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