Top 5 VA Home Loan Questions

What are the benefits of VA Loans?

VA loans require $0 down payment and do not require mortgage insurance. This alone can save you almost $200 a month on a $200,000 loan! VA loans also allow for all closing costs to be paid by the seller and credit scores as low as 620. Those who qualify can use the program multiple times and the VA Funding fee is waived for 10% or greater VA disability rating. Loans can be as great as $417,000 with no down payment and can be even larger with a small down payment. Also, family gifts are OK for down payment funds.

Who is eligible for the VA program?

Almost every veteran you may meet is eligible for the program! A vet must have served 24 continuous months on active duty or a full period called to active duty, not less than 90 days. If discharged, it must not be dishonorable. National Guardsmen and Reservists need 6 full years of service unless they are called to active duty. There are no exceptions for eligibility – your VA-approved lender determine eligibility.

What properties can use a VA Loan?

Almost any single family dwelling, except manufactured homes, can go VA. Existing homes, new homes (after construction) and two to four unit properties can all use VA. The home being purchased must be owner-occupied by a veteran withing 60 days of closing

What should my REALTOR make sure is in the Sales Contract?

Minimum recommended seller contribution should be $2000, but ask your lender for the amount specific to you. Seller contributions are first applied to “VA non-allowable” fees (if any), than to other buyer closing costs. Closing times will vary lender to lender, but you should allow at least 30 days for the appraisal and loan processing.

What Inspections are Required for VA Loans?

Home inspections are optional (but highly recommended!) for VA loans, but termite inspections are almost always required except for brand new homes and some condos. Ask your lender, but they will likely require a clean termite report – any termite treatments or conducive conditions on the inspector’s report will usually have to be taken care of before the lender will approve the loan. VA specific appraisals are required and septic inspections and water well tests are usually mandatory if applicable.
All loan programs are subject to change. For expert help with VA Loans, I recommend a specialist – Chad Bowman with Veterans United.
 By Kyle Pfaffe, REALTOR® e: KPfaffe@cityscapepg.com

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