Department of Veteran's
Affairs
http://www.va.gov/
Veteran's Benefits
Administration
http://www.vba.va.gov/
Home Loan Guaranty Services
http://www.homeloans.va.gov/
AM I ELIGIBLE? - General Rules
of Eligibility
http://www.homeloans.va.gov/elig2.htm
Veteran's Land Board
http://glo.state.tx.us/vlb
Texas General Land Office
http://glo.state.tx.us/
U.S. Department of Housing &
Development
http://www.hud.gov/
QUESTIONS?
Find answers
here ...
What is a VA guaranteed loan?
VA Loans offer the following important
features ...
VA does NOT do the following ...
How does a veteran obtain a VA
guaranteed loan?
How can I obtain more information about
VA home loans?
What is a VA guaranteed
loan?
VA guaranteed loans are made by
private lenders, such as banks, savings and loans, or mortgage
companies to eligible veterans for the purchase of a home
which must be for their own personal occupancy. To get a
loan, a veterans must apply to the lender. If the loan
is approved, VA will guarantee a portion of it to the lender.
The guaranty protects the lender against loss up to the amount
guaranteed and allows a veteran to obtain favorable financing
terms. There is no maximum VA loan but lenders will
generally limit VA loans to $240,000. This is because
lenders sell VA loans in the secondary market, which currently
places a $240,000 limit on the loans. For loans up to
this amount, it is usually possible for qualified veterans to
obtain no down payment financing. A veteran's maximum
entitlement is $36,000 (or up to $60,000 for certain loans
over $144,000). Lenders will generally loan up to four
times a veteran's available entitlement without a down
payment, provided the veteran is income and credit qualified
and the property appraises for the asking price.
VA loans offer the following
important features ...
- Equal opportunity for all
qualified veterans to obtain a VA loan
- No down payment (unless
required by the lender or the purchase price is more than
the reasonable value of the property)
- Buyer informed of reasonable
value
- Negotiable interest rate
- Ability to finance VA
funding fee (plus reduced funding fees with down payment of
at least 5% and exemption for veterans receiving VA
compensation)
- Closing costs are comparable
with other financing types (and may be lower)
- No mortgage insurance
premiums
- An assumable mortgage
- Right to prepay without
penalty
- For homes inspected by VA
during construction, a warranty from builder and assistance
from VA to obtain cooperation of builder
- VA assistance to veteran
borrowers in default due to temporary financial difficulty
VA does NOT do the following
...
- Guarantee that a home is
free of defects; VA guarantees only the loan; It
is the veteran's responsibility to assure that he/she is
satisfied with the property being purchased; The VA
appraisal is not intended to be an "inspection" of the
property; A veteran should seek expert advice (a
qualified residential inspection service), as necessary,
BEFORE legally committing to a purchase agreement
- If you have a home built, VA
cannot compel the builder to correct construction defects
although VA does have the authority to suspend a builder
from further participation in the home loan program
- VA cannot guarantee that a
veteran is making a good investment
- VA cannot provide a veteran
with legal services
How does a veteran obtain a
VA guaranteed loan?
- Contract to Purchase:
Veteran selects home and discusses purchase with seller or
selling agent and signs purchase contract conditioned on
approval of a VA guaranteed loan
- Loan Application:
Veteran selects lender, presents Certificate of Eligibility,
and completes the loan application. Lender will
develop all credit information and request VA to assign a
licensed appraiser to determine the reasonable value for the
property. Veteran will pay for credit report and
appraisal unless the seller agrees to pay. Either VA
or the lender will issue a value for property for loan
purposes based on the appraisal.
- Loan Decision:
If the established value is acceptable to all parties and
the lender develops that a veteran is credit and income
qualified, the loan may be approved. Most lenders are
authorized to make this decision.
- Loan Closing:
Veteran (and spouse) attend the loan closing and sign the
note, mortgage, and other related papers. The lender
or closing attorney will explain the loan terms and
requirements as well as where and how to make the monthly
payments.
How can I obtain more
information about VA home loans?
Call VA at 888-487-1970 or
visit VA's website at www.va.gov
or contact a local real estate professional. Pamphlets
available from the VA include:
- 26-4 VA Guaranteed Loan for
Veterans
- 26-5 Pointers for the
Veteran Homebuyer
- 26-6 To the Home Buying
Veteran
|
