Be Prepared For Your VA Loan Application
Posted on November 30, 2008
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What Things Do You Need? (To Apply For A VA Loan)
The purpose of this article is to include a quick reference checklist that will assist the veteran by including all of the pertinent information and documents that will be required when you approach a lender. As an applicant, you will benefit from having all of this listed so you will know what you will need when filling out applications or consulting with an agent about your VA home loan.
Here is your short list:
• Social Security numbers
• Residence addresses for the past 24 months
• Names and addresses of your employer(s) over past 24 months
• Documents stating current gross monthly salary
• Names, addresses, account numbers, and balances on all checking and savings accounts
• Names, addresses, account numbers, balances, and monthly payments for all currently open loans
• Addresses and loan information of other real estate owned
• Estimated value of furniture and personal property
• Certificate of Eligibility and DD214, (for veterans only)
• W2s for the past two years and current check stubs
• If you are self-employed, you must provide personal tax returns for the past two years, a current income statement, and balance sheet for the business
Try to review this and then make sure all of this information is gathered and ready to use when you begin applying for VA loan financing.
What Doesn’t The VA Cover?
Posted on November 23, 2008
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Are There Issues That The Veteran’s Administration Will Cover?
There are some things that are not covered by any provisions enacted by the Veterans Administration. More importantly, there are a number of situations or conditions that are entirely out of the control of the VA to affect or influence in any way.
First, the VA cannot guarantee that a lender will provide financing to the veteran. This is based entirely upon the lender’s discretion. The VA has no authority to compel participating lenders to establish a loan that does not adhere to the lender policy or VA standards.
Second, the VA cannot make an explicit guarantee regarding the structural integrity of the home or make assurances that the property is free of defects. This is the obligation and responsibility of the veteran. Note, that an appraisal is not the same as an inspection. If you want to buy a house but have concerns about its integrity, contact a qualified residential inspector and have them come out and do a thorough inspection of the property before you commit to buying the house.
Third, if a veteran has a home built, the VA has no authority to force the builder to correct any defects or faults in the construction. At the same time, the VA can have the builder suspended from future participation in its home loan programs.
The Veterans Administration deals within a very specific sphere of activities and offers specifically outlined services. These guidelines both establish and place necessary limits on what the VA may do.
The Veterans Benefits Act OF 2004
Posted on November 2, 2008
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How Does The Veterans Benefits Act Of 2004 Affect Me?
There have been a number of changes to the legal regulations that underpin the operations and services of the VA as it regards home loans and other programs. For many veterans, the provisions of the Veterans Benefits Act bring up many questions about how they may get a loan processing and what sort of entitlements will be available. What is this law and how does it affect you, the borrower?
The Veterans Benefits Act of 2004 was a comprehensive update that made significant changes to the VA loan process. One primary area of changes has to do with the maximum guaranty. While it was once $60,000, the amount has been modified. In the instance of those qualifying loans that are for amount of $144,000 or more, the maximum will be a sum equal to 25% of the Freddie Mac conforming loan limit. This, itself, will be determined by another lending law called the Federal Loan Mortgage Corporation Act.
Keep Your DD214 Form To Get A VA Loan
Posted on October 26, 2008
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The Importance Of The DD214 Form To Obtaining A VA Loan
Perhaps one of the most important military documents you have as a veteran is the DD214, which is the paperwork that details your discharge from the armed forces. This document serves as proof of your military status, meaning whether you are discharged, retired, or separated. The DD214 will also detail the nature of your discharge as well as your status with the Reserve or the National Guard.
When it comes to qualifying for a VA home loan, the DD214 is an indispensable piece of information. Without it, you will not be eligible for one of these loans. If you cannot obtain a copy of your discharge record you can obtain a replacement by contacting the National Personnel Records Center. This is typically done via postal mail. You must complete a SF-180 form and include it with a letter that describes your reasons for requesting a replacement and pertinent identification like name, rank, and social security number.
Use Listings Of VA Home Foreclosures
Posted on October 17, 2008
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Taking Advantage of VA Home Foreclosures
It is an unfortunate reality for many homeowners who are paying monthly mortgage payments. Many borrowers find themselves in adverse financial circumstances that can lead to missed payments and defaulting on their loan agreements. This can lead to foreclosures.
The Department of Veterans Affairs obtains the properties of veterans that have gone into foreclosure due to defaults on their VA-guaranteed home loans. Many of the acquired properties are subsequently marketed through various property management services contracts with different financial institutions and real estate agencies. These properties are then listed by local listing agents who use local Multi Listing Systems.
These inventories include all of the properties seized due to foreclosures. Potential buyers may access these databases to search for a home if they have had trouble locating properties through normal channels. Once the homebuyer finds a likely home candidate they can contact a local real estate agent to get them access to tour the property.
House Searching Alternatives
Posted on October 11, 2008
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House Finding Alternatives For Those With VA Loan Pre-Approval
In many instances, even those veterans who have proven eligible for a VA home loan and who may have received pre-approval, the task of finding the house may be the most difficult part. Most often this difficulty is due to the state of the house market in their particular location.
There are certain parts of the country where it is not uncommon to find slow or halted house markets. Fortunately, there are some genuine alternatives available for homebuyers who aren’t having any luck locating a decent house. One such alternative made available by the Veterans Administration is the offering of repossessed or foreclosed homes to qualified buyers. A second option might be investigating local or state-funded programs that exist to help veterans find and purchase homes. These state operated programs exist independently of their federal counterparts. It is up to you to get in contact with a local VA office to learn what programs may actually be available in your area.
Improve Your VA Loan Chances
Posted on October 6, 2008
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Ways To Enhance VA Eligibility: Try Improving Your Credit
Since debt ratio is such a important factor that determines your eligibility for a VA loan, it may be a great idea to concentrate some time and effort to repairing or improving your credit. The goal is to deal with problems in your credit history that may hinder your opportunities rather than enhance your VA eligibility.
Certainly, it is recommended that you speak to a credit counselor to find the best strategies for producing real results and strengthening your credit rating. There are some basic steps that you can take to increase your chances.
High interest debt sources, like credit cards, should be tackled before moving on to lower interest loans since they can have the most impact on your credit rating. Focus on eliminating as much credit card debt as possible. You will start to see real improvement on your debt ratio if you can reduce your cards to one and keep that single card paid off regularly for a half a year or so.
VA Loans For Foreign Homes
Posted on September 28, 2008
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Does The VA Allow Foreign Home Purchases?
Depending upon the particular circumstances, financially speaking, of the borrower, many veterans have considered the prospect of purchasing homes in other countries. The problem with this idea is that there are serious policy obstacles in the way. Basically, the Veterans Administration does not allow veterans to obtain mortgages for homes or other properties outside the United States. Yet, this is not an absolute policy since there are some stipulations or exceptions to note.
The VA allows you to buy homes or other real estate in so-called “American territories and possessions.” If you are not familiar with these regions, they include Puerto Rico, Virgin Islands, American Samoa, Guam, as well as the Northern Mariana Islands. All of normal procedures and rules for obtaining a VA mortgage apply in these areas. Of course, it does not hurt to contact a representative from the VA to learn more about any other types of requirements of conditions that relate to local laws in these territories.
VA Loans And The Passing Of The Veteran?
Posted on September 20, 2008
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What Happens To A VA Loan After The Veteran Passes Away?
The question does come up, occasionally. What will happen to a home mortgage loan in the event the borrower dies unexpectedly or passes away after a long illness? The answer remains the same whether you are talking about traditional types of loans or VA-guaranteed loans.
Unless some sort of mortgage life insurance coverage is obtained by the borrower, the responsibility of the mortgage loan transfers to the spouse of the deceased veteran or to the veteran’s immediate family, or even to an estate. After all, the payments still have to be made. Yet, with the VA, there are other resources, like its “Leniency Policy” than can be referenced in these circumstances. This policy provides forbearance for qualified borrowers who have encountered financial or medical difficulties.
If you want mortgage life insurance, you will need to obtain coverage from a private insurance company that offers this type of policy since the Veterans Administration does not offer such coverage. This insurance is a good thing to have.
Selling A House That You Bought With a VA Loan?
Posted on September 12, 2008
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Are You Considering Selling Your Home? [That You Bought With a VA Loan]
In some cases, it is better to sell your house and make back some money on the equity you’ve built than to keep the property. This is as true of those who have purchased their homes with a VA home loan as it is for those who used an FHA or other type of loan. Yet, there are some definite policy issues you should keep in mind if you intend to sell the property.
First, you need to understand that even if you sell the property you initially purchased using a VA loan you will still be liable for payment on that loan until you notify the proper authorities. The borrower is required to provide notification to either the Veterans Administration or to the lender of the sale. Then a request for a “release from liability” should be placed with the VA and the liability should then be transferred to the new owner.
One exception does exist to this policy. If the loan was closed prior to March 1, 1988, no notification will be needed. Nonetheless, you should still go ahead and get the “release from liability” from the local VA office to serve as evidence of the transfer of ownership.
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