Tag Archives: VA benefits
VA Loan Reader Question: Am I Obligated To Sell My Home?
May 17, 2012 
Joe Wallace 
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.”
VA Loan Reader Questions: Minimum Property Requirements
A reader asks, "I applied for a VA loan and the appraisal was done. The appraisal came back higher than the loan ($30,000 higher), but the lender says I have to make minor repairs to my house before I can proceed with the loan. My question is why do I have to make these repairs when the VA makes loans for home renovations ?"
An entire chapter of the VA Lender's Handbook is dedicated to what the Department of Veterans Affairs calls Minimum Property Requirements. These requirements are listed to help VA appraisers know what homes should be approved for VA guaranteed mortgages as-is, which need corrections or repairs before the loan can be approved, and which homes should not be considered for VA mortgages.
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?"
Questions and Answers About VA Loan Limits
We get many questions about VA loan limits, including the usual "how much can I borrow?" queries and related topics. Here's a list of common questions about VA loan limits and the answers to those questions:
What is the maximum amount I can borrow with a VA guaranteed home loan?
This is a common question, but there is no single standard answer. VA loan amounts are determined by a variety of factors. The VA loan limit itself is not the absolute maximum a borrower can get for a VA guaranteed mortgage; instead, it's the maximum amount the VA will guaranty for the mortgage. Borrowers should know that VA loan amounts are based on the county VA loan limit along with the VA appraised value of the property, not the sales price of the home. Borrowers cannot get money back on a VA new purchase home loan; the maximum loan amount is based on the appraised value plus other items allowed to be included in the financing.
VA Loan Reader Questions: Maximum Mortgage Amounts
A reader asks, "I want to buy a home in Mesa, Maricopa County, Arizona, the zip is 85207. How would I find out the maximum amount of mortgage I could borrow? Is this a jumbo loan area? Are the fees any higher for jumbo loans? Are the fees tax deductible? Thank you for any information."
There's a big difference between the maximum amount a borrower can apply to get and how much of that loan money the VA will guaranty. Technically speaking, there is no limit in the VA rules to how much the borrower can apply for, but realistically speaking the borrower will be limited by credit rating, how much the lender is willing to offer, and other factors.
VA loans Tags: borrower, Department of Veterans Affairs, eligibility, home buyer, homebuyer, VA, VA application, VA appraisal, VA benefits, VA guidelines, VA loan rules, VA loans VA Loan Seasoning Periods Following Short Sales, Foreclosures, and Bankruptcy
In response to our blog post about VA loan seasoning periods, a reader asks, "So how do we know if we will have to wait two or three years?"
This question references a minimum two-year seasoning period before a borrower can apply for a new VA home loan after a bankruptcy filing, short sale, or foreclosure. This two year wait is only negotiable in cases of Chapter 13 bankruptcies. We cover the difference between Chapter 7 and Chapter 13 in a different blog post, but VA loan rules basically state that a borrower could be allowed to apply for a new VA mortgage loan after specific conditions. From the original blog post:
"VA loan rules give lenders the option to consider a borrower still paying on a Chapter 13 Bankruptcy for a new VA home loan under certain conditions...
VA Appraisal Questions: What Kind of Electrical Systems Are Acceptable?
One type of frequently asked question about the VA appraisal process involves what's considered acceptable to VA appraisers when it comes to older homes. For example, does the VA allow homes with older electrical systems to be approved for VA guaranteed mortgages? How does the VA appraiser determine what's acceptable when it comes to fuse-style panels or similar, older systems?
When it comes to specific types of electrical panels, the Department of Veterans Affairs does not specify makes, model numbers, or issue rules about dates of manufacture. Instead, the VA defers to state or local law.
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 Loan Reader Question: Will a Lack of Credit History Hurt A VA Loan Application?
A reader asks, "My husband is a veteran with a very good job and we would like to apply for a VA Loan in a few years, but he does not have much when it comes to credit history. We recently purchased a vehicle in his name, which will be paid off within 5 years. I wad curious if that would be considered to be a major help with building a good credit that will help when it comes to building credit history for a VA Loan?"
There are two things borrowers should remember when considering a VA home loan. The first is that the VA loans are processed by a lender who will examine a borrower's credit history looking for a pattern of reliable payments over the last two years or more. The second is that those payments don't necessarily have to be on credit cards or loans.
