News and Updates
Little Known VA Loan Facts
A lot of people are under the assumption that VA loans are very difficult to process and close.This could not be further from the truth as the underwriting guidelines for VA loans are the most lenient of all the lending programs. Just a few of the great benefits our Veterans can enjoy are:
- More than one VA loan is allowed. As long as the home to be purchased now will be the primary home for the Veteran and their family more than one VA loan is allowed.
- Widowed spouses of deceased Veterans can use their spouses eligibility to obtain a VA loan of their own if they have not re-married
- Waiting periods following Bankruptcy, Short Sales or Foreclosures are shorter with VA loans than other lending programs. Also, exceptions can be made with compensating factors to allow even shorter waiting periods
- Debt to Income ratios for VA loans are less restrictive and can even go as high as 55-60% in some circumstances
- Veterans are allowed to do much higher loan amounts and can go up to 1 million. VA Jumbo loans have the same excellent rates that exist on the standard conforming VA loan amounts
- The Seller can pay up to 6% towards closing costs and pre-paid items. The Seller can also pay an ADDITIONAL 4% for concessions to the buyer. This additional 4% can be used towards new appliances and other personal property items.
- VA loans do not require additional time to close. The process to underwrite and close a VA loan is the same as all other loan programs, 30 days or less.
- There is not a separate 'VA Inspection'. When the appraisal is ordered the VA assigns a local appraiser to value the home. That appraiser is trained to not only value the property, but also to confirm that the VA's property guidelines are met. We detail a bit more about this below.
Important Facts About Homes Secured with VA Loans
Although quite lenient with underwriting guidelines, the Department of Veteran Affairs has very firm guidelines as it relates to the condition of the property. Items that can damage the home's integrity and/or place the Veteran at health or safety risk are items that will be required to be remedied prior to the loan being allowed to close. The VA wants the property to be 'Safe, Sound and Sanitary'.
Some common examples of the VA's Minimum Property Requirements (MPR's) are:
Properties that are serviced by Wells require that the Well Water be tested for several types of bacteria
Properties in the State of Florida require a clear Termite Inspection with no damage or infestations
Rust, Exposed Raw Wood and Chipped Paint
All areas affected by these must be scraped and repainted
Porches and decks with rotting wood planks will have to be repaired
All affected areas will have to be fixed, with exposed wiring capped and sealed
As always, feel free to contact us at any time for personalized loan scenarios for you and your clients! Please Call (321) 757-5009.
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