VA Home Loan Applicable Fees. Who Pays?
Posted on April 20, 2009
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What Are Fees That Must Be Authorized By The VA?
Often, when you have a VA home loan there are other fees that may be charged, but which must be authorized by the VA to become applicable. It is the lender that will contact the local VA office seeking approval of these additional fees, which may be included among the closing costs. They may be assessed if they are typically paid the borrower in certain areas or jurisdictions or if they are considered reasonable and customary in the same district.
Take a look at the following fees, many of which that will be covered by the lender if not approved by the VA:
• document preparation fees
• preparing loan papers
• attorneys services other than for title work
• photographs
• interest rate lock-in fees
• postage and other mailing charges
• stationery
• telephone calls
• amortization schedules
• escrow fees or charges
• notary fees
• trustee’s fees or charges
• loan application or processing fees
• charges by loan brokers
• tax service fees
It is also possible that these fees can be incorporated with other closing costs into the cost of the loan and then paid by the seller. There is some room for negotiation in these matters, so it might be helpful to consult the real estate agent or even the lender when dealing with this stage of the transaction.
Buying A VA Loan Home After Bankruptcy
Posted on February 27, 2009
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Can Bankruptcy Affect Your VA Loan Eligibility?
Is it possible for bankruptcy to affect a veteran’s eligibility for a VA home loan? In other words, what happens if you file bankruptcy, but you would like to purchase another home at some point in the future? Will there be any hindrances caused by your credit status?
If you are a veteran and you file for bankruptcy, you are still allowed to use VA home loans if you are also eligible under the standard VA policies. Of course, there is a downside. You will most likely be put through a required waiting period. This period is typically two years after the "discharge date" of the bankruptcy. Then you will be able to purchase another house. You need to understand that it is the discharge date and not the filing date that is the starting point of your waiting period.
When you are again eligible to buy another home, the standard credit and income requirements will apply when you are registering with the VA.
VA Debt to Income Ratios
Posted on February 1, 2009
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Some Essential Facts About VA Debt-To-Income Ratios
As with other forms of loans, the debt-to-income ratio of a veteran seeking qualification for a VA loan is a major factor that is established by the Veterans Administration and used by the lender to determine if the borrower is capable of meeting all of the expenses associated with home ownership.
This ratio can be figured by adding the total mortgage payment (all elements of PITI) and adding them to all recurring monthly revolving and installment debts such as car loans and credit cards. This number is then divided by your gross monthly income. In order to qualify for a VA loan, your ratio must be at least 41%. For those borrowers whose number exceeds this percentage, the VA has different guidelines that govern what it calls residual income.
There are other factors can also help to determine whether you will be able to qualify for a VA loan. Some compensating factors include good credit history, limited use of consumer credit sources, minimal consumer debt, long-term employment, military benefits, liquid assets, etc.
VA Loans Have An Occupancy Law
Posted on December 21, 2008
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Do You Know The VA’s Stance On Occupancy Law?
There are a number of very specific requirements that the borrower must meet in order to get the benefits of VA loan financing. Among those requirements, there are those that have to do with occupancy, meaning the borrower’s living arrangements.
In fact, the law states that those veterans who have gotten a VA-guaranteed home loan must verify that they have every intention of personally dwelling on the premises, and maintain the property as their primary residence. Once this has been certified in writing, the veteran is obligated to move in and take up residence immediately or must intend to do so within sixty days after the closing.
These general requirements are applicable and enforceable for most types of loans that have been guaranteed by the Veterans Administration. The only exception is in the case of an IRRRL, or Interest Rate Reduction Refinancing Loans. With IRRRLs, the veteran is only required to certify that he or she previously occupied the property as a normal residence.
Do You Need A Joint VA Loan?
Posted on December 6, 2008
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Have You Considered A Joint VA Loan Or Cosigning?
According to the policies of the Veterans Administration, legally married spouses of veterans who meet the qualifying provisions of the VA can be recognized as co-signors on VA home loans and include their income as well. These loans can be guaranteed in every way like others accepted by the VA.
Also, VA has provisions that deal with joint loan ventures. These guidelines allow multiple veterans to purchase the home together. Furthermore, if more than one eligible veteran is involved in the application for financing, the VA will divide the entitlement charges between each party. These loans receive the full privileges of any VA guaranteed loan.
Another provision at least will allow a non-veteran to co-sign on a mortgage while not affording full guaranty status for the loan. In this case, the VA Guarantee provides for only a portion of the loan that is the veteran’s part or interest in the property.
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.
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