VA Home Loans A mortgage loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing. The Department of Veterans Affairs does not directly originate VA loans.VA Mortgage Loans A VA (Veterans Administration) guaranteed home loan is the preferred loan program for active, non-active, Reserve, National Guard, and retired military of the armed forces because there is no down payment needed and no private monthly mortgage insurance required.Benefits of Getting A VA Loan 100% financing + seller's concession of 6%. No private mortgage insurance is required.There is a limitation on buyer closing cost.The loan is assumable subject to the assumer's credit approval.Seller can pay 4% of your closing cost and even help you pay down your debt in order to lower your debt to income ratio.Interest rate are better than conforming loans and similar to FHA loans but without the PMI.2012 VA Loan Eligibility Questions2012 Underwriting Guidelines2012 VA Loan Funding Fee's Exemptions2012 VA Loan Funding Fee Exemptions2012 VA Loan Closing Costs Exemptions2012 VA Loan Compliance Inspections2012 VA Loan Sellers ConcessionsMilitary Service Requirements for VA Loan EligibilityNote: Applications involving other than honorable discharges will usually require further development by VA. This is necessary to determine if the service was under other than dishonorable conditions.Wartime - Service During:WWII: 9/16/1940 to 7/25/1947Korean: 6/27/1950 to 1/31/1955Vietnam: 8/5/1964 to 5/7/1975You must have at least 90 days on active duty and been discharged under other than dishonorable conditions. If you served less than 90 days, you may be eligible if discharged for a service connected disability.Peacetime - Service during periods:7/26/1947 to 6/26/19502/1/1955 to 8/4/19645/8/1975 to 9/7/1980 (Enlisted)5/8/1975 to 10/16/1981 (Officer)You must have served at least 181 days of continuous active duty and been discharged under other than dishonorable conditions. If you served less than 181 days, you may be eligible if discharged for a service connected disability.Service after 9/7/1980 (enlisted) or 10/16/1981 (officer)If you were separated from service which began after these dates, you must have:Completed 24 months of continuous active duty or the full period (at least 181 days) for which you were ordered or called to active duty and been discharged under conditions other than dishonorable, or Completed at least 181 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1171 (Early Out), or have been determined to have a compensable service-connected disability;Been discharged with less than 181 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances for the convenience of the Government.Gulf War - Service during period 8/2/1990 to date yet to be determined If you served on active duty during the Gulf War, you must have:Completed 24 months of continuous active duty or the full period (at least 90 days) for which you were called or ordered to active duty, and been discharged under conditions other than dishonorable, or Completed at least 90 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1173 (Early Out), or have been determined to have a compensable service-connected disability, or Been discharged with less than 90 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances, for the convenience of the Government.VA Loan Fees A Borrower Might Pay When buying a home with a VA mortgage, there are a range of fees and expenses a borrower should expect to pay, and then there are fees that could be paid depending on the type of home loan, the state or housing market that loan is issued in, etc.The VA has some requirements that govern these types of expenses; one good example of that is when a third party renders a service as part of the VA loan. The only amount the borrower may...Is Now The Time To Apply For A VA Home Loan?Ever since 2008 and the housing market crisis that started that year, some veterans and currently serving military members have felt leery of applying for a home loan. While it's true that some choose to buy in spite of housing market woes, those who held back may well be considering 2012 or early 2013 as the time to commit.Part of that motivation is due to recent headlines like the one published on October 3, 2012 at Money.CNN.com; "Economists: Housing recovery finally here".That's a fairly...VA Loan Fees and The Appraisal Process The appraisal process for VA home loans seems to be a mystery to many borrowers; there are many frequently asked questions about this critical stage of buying a home using VA loan benefits.VA appraisals are required by federal regulations; the home you want to buy with a VA loan must meet VA minimum property requirements for safety, structural integrity, and other issues.Some assume these rules are to protect the borrower from buying a home with shoddy workmanship or one that is located in an area...Questions about who is eligible for a VA loan and reuse of eligibility for another VA loan Q: How do I apply for a VA guaranteed loan?A: You can apply for a VA loan right here Free Consultation, or you can always call me direct at (516) 469 6262. Please do not hesitate Q: How do I get a Certificate of Eligibility?A: You can obtain information on how to get a Certificate of Eligibility by going on to this site here.http://www.benefits.va.gov/homeloans/docs/Veteran_registration_coe.pdf). A Certificate of Eligibility for Home Loan Benefits, to the Veteran Loan Administration Eligibility Center, along with proof of military service. In some cases it may be possible for VA to establish eligibility without your proof of service. However, to avoid any possible delays, it's best to provide such evidence.Q: Can my lender get my Certificate of Eligibility for me?A: Yes, it's called Web LGY. Only VA Approved lenders have access to the Web LGY system. This Internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through Web LGY - only those for which VA has sufficient data in our records. However, veterans are encouraged to ask their lenders about this method of obtaining a certificate.Q: What is acceptable proof of military service?A: If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which identifies you and your social security number, and provides your date of entry on your current active duty period and the duration of any time lost.If you were discharged from regular active duty after January 1, 1950, a copy of DD Form 214, Certificate of Release or Discharge From Active Duty should be included with your VA Form 26-1880. If you were discharged after October 1, 1979, DD Form 214 copy 4 should be included. A PHOTOCOPY OF DD214 WILL SUFFICE.....DO NOT SUBMIT AN ORIGINAL DOCUMENT.If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which shows your date of entry on your current active duty period and the duration of any time lost.If you were discharged from the Selected Reserves or the National Guard, you must include copies of adequate documentation of at least 6 years of honorable service. If you were discharged from the Army or Air Force National Guard, you may submit NGB Form 22, Report of Separation and Record of Service, or NGB Form 23, Retirement Points Accounting, or its equivalent. If you were discharged from the Selected Reserve, you may submit a copy of your latest annual point's statement and evidence of honorable service. Unfortunately, there is no single form used by the Reserves or National Guard similar to the DD Form 214. It is your responsibility to furnish adequate documentation of at least 6 years of honorable service.If you are still serving in the Selected Reserves or the National Guard, you must include an original statement of service signed by, or by the direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters showing the length of time that you have been a member of the Selected Reserves. Again, at least 6 years of honorable service must be documented.Q: How can I obtain proof of military service?A: Standard Form 180, Request Pertaining to Military Records, is used to apply for proof of military service regardless of whether you served on regular active duty or in the selected reserves. This request form is NOT processed by VA. Rather, Standard Form 180 is completed and mailed to the appropriate custodian of military service records. Instructions are provided on the reverse of the form to assist in determining the correct forwarding address.Q: I have already obtained one VA loan. Can I get another one?A: Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property. In either case, to obtain restoration of eligibility, the veteran must send a completed VA Form 26-1880 to our Eligibility Center. To prevent delays in processing, it is also advisable to include evidence that the prior loan has been paid in full and, if applicable, the property disposed of. This evidence can be in the form of a paid-in-full statement from the former lender, or a copy of the HUD-1 settlement statement completed in connection with a sale of the property or refinance of the prior loan.Q: I sold the property I obtained with my prior VA loan on an assumption. Can I get my eligibility restored to use for a new loan?A: In this case the veteran's eligibility can be restored only if the qualified assumer is also an eligible veteran who is willing to substitute his or her available eligibility for that of the original veteran. Otherwise, the original veteran cannot have eligibility restored until the assumer has paid off the VA loan.Q: My prior VA loan was assumed, the assumer defaulted on the loan, and VA paid a claim to the lender. VA said it wasn't my fault and waived the debt. Now I need a new VA loan but I am told that my used eligibility cannot be restored. Why?Or,Q: My prior loan was foreclosed on, or I gave a deed in lieu of foreclosure, or the VA paid a compromise (partial) claim. Although I was released from liability on the loan and/or the debt was waived, I am told that I cannot have my used eligibility restored. Why?A: In either case, although the veteran's debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran's eligibility to be restored until the loss has been repaid in full.Q: Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don't own the property anymore. Can I still obtain a VA guaranteed home loan?A: Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required.Q: Is the surviving spouse of a deceased veteran eligible for the home loan benefit?A: The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. If you wish to make application for the home loan benefit as a surviving spouse, contact our Eligibility Center. In addition, a surviving spouse who obtained a VA home loan with the veteran prior to his or her death (regardless of the cause of death), may obtain a VA guaranteed interest rate reduction refinance loan. For more information, contact our Eligibility Center.[NOTE: Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must apply no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 16, 2003 that are received after December 15, 2004.]Q: Are the children of a living or deceased veteran eligible for the home loan benefit?A: No, the children of an eligible veteran are not eligible for the home loan benefit.VA Loan Fees A Borrower Might Pay When buying a home with a VA mortgage, there are a range of fees and expenses a borrower should expect to pay, and then there are fees that could be paid depending on the type of home loan, the state or housing market that loan is issued in, etc.The VA has some requirements that govern these types of expenses; one good example of that is when a third party renders a service as part of the VA loan. The only amount the borrower may be charged for such services is the actual cost of those services--no surcharges or extra fees can be tacked on by the lender.Some other types of expenses a borrower should anticipate "just in case" include the following:Title Examination and Title Insurance The borrower may be required to pay a fee for title examination and title insurance, if warranted. VA loan rules explain this in VA Pamphlet 26-7, Chapter Eight.Mortgage Electronic Registration System (MERS) Fee VA loan rules state, "The veteran may pay a fee for MERS. MERS is a one-time fee for the purpose of electronically tracking the ownership of the beneficial interest in a loan and its servicing rights."Special Mailing Fees for Refinancing Loans For refinancing loans only, VA loan rules permit the borrower to be charged for costs associated with using Federal Express, Express Mail, or a similar service, "when the saved per diem interest cost to the veteran will exceed the cost of the special handling.""Other" Fees Authorized By The Department of Veterans Affairs VA loan rules for "other" or "additional" fees are addressed in Chapter Eight of VA Pamphlet 26-7, which states clearly, "Additional fees attributable to local variances may be charged to the veteran only if specifically authorized by VA. The lender may submit a written request to the Regional Loan Center for approval if the fee is normally paid by the borrower in a particular jurisdiction and considered reasonable and customary in the jurisdiction."The phrase "reasonable and customary" is key in that paragraph. While that may be open to interpretation, the VA has the final say when it comes to that interpretation as it applies to the rules in Chapter eight.Is Now The Time To Apply For A VA Home Loan?Ever since 2008 and the housing market crisis that started that year, some veterans and currently serving military members have felt leery of applying for a home loan. While it's true that some choose to buy in spite of housing market woes, those who held back may well be considering 2012 or early 2013 as the time to commit.Part of that motivation is due to recent headlines like the one published on October 3, 2012 at Money.CNN.com; "Economists: Housing recovery finally here".That's a fairly bold headline--and one that might push some doubters into giving the market another chance. Consider the article's opening line. "It's been a long time coming, but economists surveyed by CNNMoney believe the nation's housing market has finally turned the corner."That article goes on to say that fourteen economists were surveyed about home prices, with nine respondents indicating they feel home prices have either started trending upwards or will do so in 2013. Three months prior to that survey, fifty percent of the economists polled by CNN Money stated a turnaround in home prices was likely in 2013.There are other indicators that the time to consider a VA home loan is now--there have been three months of improvements in the numbers on the S&P/Case-Shiller home price index, plus, as CNN Money reports, "a pick-up in sales of existing homes and home construction and a big jump in the price of new home sales."Qualified VA borrowers currently have very low interest rate options open to them, and with house prices beginning to rise once more, there is a good opportunity for borrowers--depending on the housing market--to find competitive prices on new purchase homes, short sales, and even VA loan assumptions.If you're considering a VA loan for the end of 2012 or early 2013, it's a very good idea to pre-qualify for a VA loan amount, discuss your options with a loan officer, and start planning for a look at your favorite neighborhoods for a new home.VA Loan Fees and The Appraisal ProcessThe appraisal process for VA home loans seems to be a mystery to many borrowers; there are many frequently asked questions about this critical stage of buying a home using VA loan benefits.VA appraisals are required by federal regulations; the home you want to buy with a VA loan must meet VA minimum property requirements for safety, structural integrity, and other issues.Some assume these rules are to protect the borrower from buying a home with shoddy workmanship or one that is located in an area unsuitable due to high risk of natural disasters or other problems. But there is another reason for the detailed rules that govern VA appraisals; when it comes time for the VA borrower to sell the home later down the line (assuming he or she chooses to do so); the sale of that home is not tarnished by such conditions as pointed out in the VA rulebook as being unacceptable.In other words, the VA appraisal protects the buyer at purchase time, but also when it's time to put the home up for sale.The VA appraisal costs money--the borrower is responsible for paying the VA appraiser's fee, which varies depending on the housing market and state. There is no one set fee for VA appraisal work; only what is considered "reasonable and customary" in that housing market.Another area that confuses some borrowers--the need to pay for any required compliance inspection. When a VA fee appraiser does the job at a specific home and finds things which require correction, repair, or other attention in order for the VA loan to be approved, there may be a compliance inspection required in order to make sure those repairs actually get done, and to the satisfaction of the VA.Compliance inspections must also be paid for by the borrower--it's an expense that should be considered a typical part of buying a home. Sometimes they are needed, sometimes they are not. But a VA loan applicant should always budget for such things just in case--don't be caught unprepared for the expense should it be required.Finally, it should be noted that appraisal fees and compliance inspection fees are issued for services rendered--NOT for the results of those services. The borrower does not pay for a positive outcome in either case--just that the work gets done and a determination is made. It's the service, not the outcome that is being paid for.VA Loan 2012 Underwriting Guidelines for New VA Loan Home Purchase No down payment is required by VA unless the purchase price exceeds the reasonable value of the property. The VA Loan lender may require a down payment if necessary to meet secondary market requirements if the home is being purchased above the value given by the VA Loan Appraiser.The veteran must certify that he or she intends to personally occupy the property as his or her home.Interest rate and points are negotiated between the VA approved VA Loan Lender and veteran.The veteran and seller may negotiate for the seller to pay all or some of the points.Points must be reasonable and must be approved by the Veterans Administration.Points may not be financed in the loan except with Interest Rate Reduction Refinancing Loans (IRRRLs).Flexible VA Loan standards. The veteran must have:Satisfactory credit, and Satisfactory repayment ability Stable income Residual income (net effective income minus monthly shelter expense) in accordance with regional tables, and Acceptable ratio of total monthly debt payments to gross monthly income (A ratio in excess of 41% requires closer scrutiny and compensating factors.).2012 VA Loan Funding Fee's The veteran must pay a funding fee to help defray costs of the VA home loan program.The VA home loan program involves a veteran's benefit.VA policy has evolved around the objective of helping the veteran to use his or her home loan benefit. Therefore, VA regulations limit the fees that the veteran can pay to obtain a loan.Lenders must strictly adhere to the limitations on borrower-paid fees and charges when making VA loans.In order to defray the cost of administering the VA home loan program, each veteran must pay a funding fee to VA at loan closing.Congress may periodically change the funding fee rates to reflect changes in the cost of administering the program, or to assist a certain class of veterans.