What is a VA loan?
VA (Veteran's Administration) guaranteed loans are made to qualified veterans for the purchase of a primary residence. The guarantee protects the lender from losses in cases of default. The loan is subject to the VA underwriting guidelines.
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What's a Certificate of Eligibility and how do I get mine?
The Certificate of Eligibility is a required form that is issued by VA to the veteran showing his/her entitlement. The easiest way to get your certificate is to contact Tracey and she can access the VA Automated System to see if we can obtain it electronically. If not, she can provide you with the proper form and address to request your certificate by mail.
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What are the advantages of a VA loan?
No down payment and easier credit qualifying than a conventional mortage.
Lower closing costs and no monthly mortgage insurance.
When comparing lending options on fixed rate no down mortgages, VA will always have the lowest monthly payment. This loan is also assumable.
VA requires that a home meet certain minimum condition standards to protect the veteran and assure VA of the soundness and marketability of the home.
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What are the disadvantages of a VA loan?
Funding fees must be paid on a VA loan. The cost of this fee (anywhere from 2.15% - 3.3% on a 0 down loan) can be rolled into the loan. Funding fees are waived for any veteran with a service related disability.
VA requires that a property meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only options are to pay for the required repairs yourself, change to conventional financing, or find a different property.
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Are there income limits on VA loans?
No.
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Are there loan amount limits on VA loans?
Technically, no. However, when purchasing a home the current laws allow you to secure a loan in the amount of $417,000 with no down payment requirement. Any amount above that will have a down payment required. (There are special rules for Alaska, Hawaii, Guam and the US Virgin Islands.) Some refinance transactions do not allow loan amounts as high as purchase loans. Contact Tracey regarding your specific circumstances.
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I want to buy a duplex. Can I do a VA loan?
Yes. As long as you are planning on living in the property as your primary residence, VA will lend on a 2-4 family property as long as it complies with all of the VA guidelines. You will be able to use 75% of the rental income to help qualify for the payment IF you have prior experience in property management and maintainence.
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Home Loan is a LAPP lender. Is that good?
Yes. A LAPP (Lender Appraisal Processing Program) lender has the authority to review the VA appraisal in-house and issue a Notice of Value Certificate, rather than waiting for the Denver Regional office to review it. Bottom line: faster processing for you!
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Is it possible to combine Utah Housing and VA?
Yes, and it's a very good thing. You get a great loan at an even lower interest rate. For more information, click on my Utah Housing page.
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Can I qualify for a VA loan?
Go to my "Can I Qualify" page to see the profile for a VA borrower.
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