Quick reference guide for VA loans

Mortgage and Lending with Alterra Home Loans

In yesterday's post, I provided some basic guidelines for the standard FHA loan and the benefits to the home buyer.  In today's post, I am providing a quick reference to basic guidelines for VA loans and the associated benefits to home buyers.  Feel free to call or email (or leave a comment) if you have any quesitons regarding any of the loans in this series.  Tomorrow I will be discussing conventional loans.  Here you go:


          For your VA buyer with the right credentials, nothing beats a VA loan.


          Program guidelines:

              Loan-to-Value:  100%

                  Debt-to-Income Ratio:  as high as 55%

                  Minimum Credit Score:  640+

                   VA Funding Fee (no monthly mortgage insurance):  

                             1) 2.15% for first-time users (financed)

                             2) 3.30% for subsequent users

                   Reserves:  None required

                   Bankruptcy:  Need re-established credit

                             1) Chapter 7 – eligible 2 years from the discharge date

                             2) Chapter 13 – eligible 1 year from the filing with          Trustee’s approval

                   Foreclosure / short sale:  eligible three years from the                    foreclosure date or sale date.


     Benefits to the buyer:

                   1)  No down-payment requirement – 100% financing

                   2)  higher debt-ratio allowances – as high as 55%

                   3)  no reserve requirements

                   4)  more flexible than conventional financing with regard to credit issues

                   5)  Seller can pay up to 6% in closing costs

                   6)  Lower payment than FHA since there is no monthly mortgage insurance


Posted by

D. Jed Wunderli

Certified Mortgage Planner

Alterra Home Loans


Comments (3)

Ritu Desai
Samson Properties - Ashburn, VA
Virginia Realtor-Fairfax/Loudoun/PW-703-625-4949

Great information!! I will reblog this and check out the FHA guidelines.

Jun 07, 2011 06:35 AM
Jed Wunderli
Alterra Home Loans - Las Vegas, NV

Thanks, Ritu.  I'll be providing a quick reference guide for conventional loans tomorrow, the FHA 203(k) Streamline loan on Thursday and then some niche products on Friday.  Make sure you check back for those - especially the under-utilized FHA 203(k) Streamline which is really a fantastic program when done the right way.

Jun 07, 2011 07:06 AM
Ashlesh Sharma

Quick reference guide for VA loans you will gain from it

Home Loan Deals

Aug 20, 2012 05:13 PM