Tag Archives: VA loan application
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 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 Loans and Credit Issues
A reader asks, "My credit is not so good due to a student loan...it was canceled out but it still on my credit report and for some reason it hasn't been removed….with that my credit score would be rather decent….it would be nice to know how to move forward with this issue…..can anyone help me?"
VA home loans require the same type of credit checks and verification procedures as any other major credit line, and requesting credit reports is one of the most basic steps in the VA loan approval process. Home loan experts urge borrowers to begin preparing for any type of home loan application as early as possible--a year or more prior in most cases--to include reviewing personal credit data.
Smart borrowers request credit reports and review them for errors, inaccuracies, or items that should not be included in the report.
VA Loans: What Happens If the Borrower Dies?
A reader asks, "What happens to a VA loan when the veteran dies and the spouse is not on the loan?" The Department of Veterans Affairs official site addresses this question directly in a section called Post-Loan Frequently Asked Questions. According to the VA, this is common enough question to warrant inclusion in its FAQ:
"Q: If a veteran dies before the loan is paid off, will the VA guaranty pay off the balance of the loan?
How Do I Apply For Specially Adapted Housing Benefits From The VA?
The VA loan benefit includes several options for disabled veterans with injuries or handicaps recognized by the Department of Veterans Affairs. If you receive, or are eligible to receive VA compensation for these disabilities, you may also be entitled to VA loan benefits above and beyond those typically available for eligible vets.
For example, did you know qualifying disabled veterans are exempt from paying the VA loan funding fee? This exemption is not automatic--it must be applied for--but can save qualifying borrowers thousands of dollars on their VA home loans. Qualifying veterans may also be able to participate in VA specially adapted housing programs, which include grants to modify existing or new purchase homes.
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 Questions: Why Can’t I Use My VA Home Loan Benefits?
A reader asked us recently, "I bought my first home using a VA loan. I was honorably discharged. I was approved for a two week early release and was told I would receive my full benefits. The home I’m living in now is through an FHA loan because I was told that I was not approved for a VA loan. I served two weeks shy of two years active duty and was approved for early release with the understanding I would receive my benefits. Is there anything I can do about this or was my time in the Navy for nothing?
The most important thing to understand about this particular question is that VA loan eligibility--the fact that a borrower is eligible to apply for a VA guaranteed home loan--is not the same as VA loan approval. Borrowers must submit to credit checks, employment verification and other qualifying measures in order to be approved for a VA mortgage loan.
VA loans Tags: military service, new home, occupancy, real estate, VA, VA application, VA appraisals, VA benefits, VA home loans, VA loan, VA loan application, VA loan eligibility VA Refinancing Loan Rules: Can I Get Cash Back?
There are several different types of VA refinancing loans. We get many questions about VA refinancing in our comments section; many readers want to know if they can use VA refinancing loans to pay off credit cards, student loans or other types of debt.
There is one type of VA loan that features cash back to the borrower--the VA Cash-Out Refinancing loan. This VA-guaranteed refinancing loan does allow the borrower to get cash back from the new loan for any purpose "acceptable to the lender". It requires a new credit check, appraisal, and the borrower must certify he or she is using the home as the primary residence.
VA Loans, Credit History, and Your Application
We encourage readers to ask questions about the VA home loan program in the comments section of our blog posts. Some readers want to know if they are eligible for VA mortgages because of past credit difficulties like bankruptcy and foreclosure. Others want to know if they are eligible for VA loans even though they don't have credit or have non-traditional credit. When it comes to issues like these, it helps to understand the basic requirements put forth by the Department of Veterans Affairs for VA mortgage loans. In the VA Lender's Handbook, Chapter Four, the rules include some basic requirements.
VA loans Tags: debt-to-income ratio, VA loan application, VA loan help, VA loan news, VA loan rules, VA loans, VA mortgage, VA mortgage loan VA Loan Appraisal Rules: Your Mileage May Vary
A reader asks, "I’m getting ready to make an offer on a house which sides to a freeway sound wall. Will this type of location disqualify the house for a VA loan?" While the Department of Veterans Affairs does specify a wide range of conditions for which a home may not be acceptable for a VA mortgage loan, the rules for what the VA terms Minimum Property Standards do not address each and every situation a home buyer might face. Questions like these may have different answers depending on where the home is located.
VA requirements Tags: borrower, credit, Department of Veterans Affairs, homebuyer, new home, VA, VA home loan rules, VA loan application 
