Why get a VA loan over other types?
Simply put, a VA Home loan allows qualified buyers the opportunity to purchase a home with no down payment. Also, there are no monthly mortgage insurance premiums to pay, limitations on buyer’s closing costs, and an appraisal that informs the buyer of the property value. For most loans on new houses, construction is inspected at appropriate stages and a one year warranty is required from the builder. VA also performs personal loan servicing and offers financial counseling to help veterans having temporary financial difficulties.
What is a funding fee? Do I have to pay for this?
VA funding fee is a fee added to your loan that goes to the Veterans Administration. For your first time use of a VA loan, your funding fee is 2.15% of your loan amount. For each subsequent use it is 3.3%. You will be required to pay it unless you have a service related disability of 10% or greater in which case the funding fee is waived.
Does it matter what your credit score is with the VA?
The VA doesn’t put an extraordinary amount of weight on credit scores, but does look for a clear 12 month history.
What is a statement of service?
A statement of service is a letter from your commanding officer stating how long you have been in the service and what your status is. It is often required for underwriting purposes for active duty applicants.
Reservists are eligible for VA Loans, too. Who qualifies?
Eligibility extends to members who have completed a total of 6 years in the Selected Reserves or National Guard (member of an active unit, attended required weekend drills and 2-week active duty for training) and received an honorable discharge; continue to serve in the Selected Reserves. Individuals who completed less than 6 years may be eligible if discharged for a service-connected disability. In addition, reservists and National Guard members who were activated on or after August 2, 1990, served at least 90 days and were discharged honorably are eligible.
What if I’ve used a VA Home Loan Before?
You can have previously-used entitlement “restored” one time only in order to purchase another home with a VA loan if the borrower has paid off the prior loan but still owns the property, and wants to use his entitlement to purchase a second home. This often occurs with active duty borrowers who PCS to a new station but want to keep their existing home for retirement. However, if the prior loan has been paid off and the property is no longer owned, they can have their entitlement restored as many times as they want. They can re-use their VA eligibility for every home purchase from the first to the last.

Also, veterans who have used a VA loan before may still have remaining entitlement (see chart) to use for another VA loan. A veteran’s maximum entitlement is $89,912, and lenders will generally loan up to four times your available entitlement without a down payment, provided your income and credit qualifications are fine, and the property appraises for the asking price. Lenders may require that a combination of the guaranty entitlement and any cash down payment must equal at least 25 percent of the reasonable value or sales price of the property, whichever is less.

What service is not eligible for a VA Home Loan?
You are not eligible for VA financing solely based upon Active Duty for Training in the Reserves or National Guard.

Note: Guard and Reservists are eligible if they were “activated” under the authority of title 10 U.S. Code as was the case for the Iraq/Afghanistan.

I am a Veteran who purchased a home with my spouse utilizing my VA eligibility. I am now divorced and my spouse was awarded the home. How do I get my eligibility back?
When the property is awarded to the Veteran’s spouse as a result of the divorce, entitlement cannot be restored unless the spouse refinances the property and / or pays off the VA loan in full or the ex-spouse is a veteran who substitutes their entitlement.
I heard the VA has an inventory of foreclosed homes. How can I find out more about this?
The Department of Veterans Affairs (VA) acquires properties as a result of foreclosures on VA guaranteed loans. These acquired properties are marketed through a property management services contract with Ocwen Federal Bank FSB, West Palm Beach, Florida. Local listing agents through local Multi Listing Systems (MLS) list the properties.
My spouse and I are both eligible for a VA Loan, how does that affect us?
There will be very little effect. You can choose to use your Certificate of Eligibility or your spouse’s or a portion of both of them and it will have no impact on the details of the loan. One benefit of having an eligible partner is that you can avoid the increased funding fee for subsequent VA Loans. For your next home purchase you could use your spouse’s eligibility and not have to pay the increased fee.
I just got divorced, can I obtain another VA Loan for a new house?
You will still be eligible, but you must have remaining entitlement to take out a new VA Home LoanA VA Loan Specialist can help you run the math to determine if you have any first tier or second tier entitlement remaining and if so how much. From there he can give you a price range to stay within to avoid having to make a down payment.

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