Tag Archives: military service
VA Loan Reader Question: Home Inspections
May 18, 2012 
Joe Wallace 
A reader asks, "We are using a USDA home loan for our first home. Our offer has been accepted and we've signed a purchase agreement."
"I asked our Realtor about when we can have a home inspection done; he said it's too late. He said he was under the impression that the VA did that and maybe that we wouldn't want to pay for two. He never asked us about getting one done. Is it too late to have one done? Our offer was accepted less than a week ago. Thank you for your help."
VA loans 
Tags: borrower, credit, debt-to-income ratio, eligibility, home buyer, inspection, military service, real estate, real estate agent, VA application, VA appraisal VA Loan Reader Question: Am I Obligated To Sell My Home?
A reader asks, "If I'm the seller, and the VA value after the appraisal is lower than what I'm asking, do I have any right to refuse the sale with this buyer or not? What options do I have if I want to cancel the sale at this moment? The VA just appraised my house last Tuesday."
VA loan requirements stipulate that the following "escape clause" be added to a commitment to purchase:
“It is expressly agreed that, notwithstanding any other provisions of this contract, the purchaser shall not incur any penalty by forfeiture of earnest money or otherwise or be obligated to complete the purchase of the property described herein, if the contract purchase price or cost exceeds the reasonable value of the property established by the Department of Veterans Affairs.”
Condo Eligibility For VA Appraisal and Loan Approval
Some of the most common questions about VA condo loan approval have to do with condo project approval and appraisals of condo units. Some borrowers who want a VA guaranteed home loan for a condominium unit don't know the VA policy when they start their search for a home--what do VA rule say about condo projects?
The very first thing a potential VA loan applicant should know is that a condo project must be "acceptable to VA before any unit in the project can be eligible for VA loan guaranty".
VA Loan Occupancy Requirements
A reader asks, "If I purchased a home utilizing my VA benefits and for some reason I cannot occupy this home as required by law, what is the penalty or fine if any will be levied against me?"
As a condition of loan approval, VA rules require a borrower to certify in a legally binding document that he or she will occupy the home within a reasonable period (usually 60 days) following the closing of the loan. For married borrowers, the spouse can move into the home and fulfill the occupancy requirement. Borrowers who know ahead of time they cannot or will not occupy the home right away have two basic choices--make arrangements with the lender and VA, or do not close the deal on the loan.
VA requirements Tags: borrower, certificate of eligibility, credit, Department of Veterans Affairs, home buyer, military service, occupancy, real estate, VA application, VA benefits, VA funding fee, VA guidelines, VA home loan, VA home loans, VA loan application, VA loan eligibility, VA Loan Fees VA Loan Reader Questions: Refinancing Rules For Divorced, Non-Veteran Borrowers
A reader asks, "My sister is a cosigner on a VA loan based on her husbands eligibility. She is now divorced and the house was given to her in the divorce agreement. She received part of her husband's retirement, since they were married 33+ years. Her ex-husband signed a quitclaim relinquishing all rights to the house."
"She is responsible for the payments according to the divorce agreement and there has never been a late payment on the loan. She has never remarried...My sister wants to do a Streamline and wants to know if the quitclaim signed by her ex will be a problem. If so, is there a remedy to the situation so she can get a VA refinance?"
VA Loan Reader Questions: Can We Buy A Multi-Unit Property With a VA Guaranteed Joint Loan?
A reader asks, "Everyone is telling me that a VA loan can only be used to for up to 4-units and that there are no exceptions. How can I prove that two VA eligible veterans can rent up to a 6-unit property? Can you tell me where, specifically, you found this information? Thank you!"
Chapter 7 of the VA Lender's Handbook states clearly:
"If a property is to be owned by two or more eligible veterans, it may consist of four family units and one business unit, plus one additional unit for each veteran participating in the ownership."
VA Loan Rules: Spouse Income
One frequently asked question about VA home loans involves whether a spouse's income can be counted on the VA loan application for the purposes of calculating the debt-to-income ratio.
It is easy to assume that a VA loan application with spouse income included would be stronger than without it; the combined incomes show more earning power and if the amount of debt is well within the VA requirements it would seem like a logical choice. In fact, VA loan rules instruct lenders specifically, "Verify and treat the income of a spouse who will be contractually obligated on the loan the same as the veteran’s income."
VA Loans and Ineligible Properties
We encourage readers to ask questions about VA home loans in the comments section--every week we receive many questions about the details of VA guaranteed home loans including queries about which types of properties are or are not eligible for a VA mortgage loan.
One common question is about the possibility of a VA mortgage for a boat. Unfortunately, VA loans aren't available for boats as they don't have a permanent foundation and can't be classified as "real property". Other people want to know if a certain type of home or homes in a certain condition are eligible.
VA appraisals Tags: Department of Veterans Affairs, eligibility, homebuyer, inspection, military service, new home, occupancy, real estate, VA guaranteed loan, VA home loan rules, VA insured loan, VA loan, VA loan application, VA loan eligibility, VA Loan Fees, VA mortgage loan, VA MPRs, VA requirements VA Loan Reader Question: Waiver of Seasoning Period For Chapter 7 Bankruptcy?
A recent reader comment with the subject line, "Waiver of two year wait for bankruptcy" includes the following:
"I have had two VA loans and never had a foreclosure or missed payments. I have a Chapter 7 bankruptcy discharged Dec 12, 2010. My mortgage was included in the bankruptcy but I continued to make the payments until I sold the house. I want to again purchase a house using the VA. I am retired military and social security with an annual income of $70K."
While there's no question directly asked here, it's implied that the reader seeks a waiver for the VA required minimum two-year waiting period following a foreclosure or Chapter 7 bankruptcy. However, VA loan rules do not provide any such waivers. Two years is the minimum waiting time required, and some lenders require an additional year at a minimum.
VA Refinancing Loans
The VA Lender's Handbook describes two basic types of VA refinancing loans. One is the VA Interest Rate Reduction Refinancing Loan, which features no money back to the buyer and can be done in "streamline" mode for those who already have VA mortgages (under the right conditions). Another is the VA Cash-Out Refinancing Loan, which as the name implies does feature cash back to the borrower, requires a new credit check and other underwriting requirements. But the Department of Veterans Affairs also has rules for "other refinancing loans", which are described in Chapter 16 of the VA Lender's Handbook.
According to Chapter 16, these additional VA refinancing loans are for construction loans, installment land sale contracts, and mortgage loans "assumed by veterans at interest rates higher than that for the proposed refinance."
