Dept of Veteran Affairs (DVA Loans)

Question 1

DVA-1

Answer 1

• Does not allow a prepayment penalty
• May be assumed by a qualified nonveteran
• Interest rates are set by the market
• property must be appraised by a DVA approved appraiser
• DVA sets a limitation on the loan amount of the veterans entitlement guarantee but will increase the guarantee to $104,250 to allow a veteran to buy a house for up to $417,000

Question 2

DVA-2

Answer 2

• DVA requires appraisers to complete a Certificate of Reasonable Value (CRV); the DVA guarantee is based on either the amount of the CRV or the selling price, whichever is less
• National Guard members and reservists with at least 6 years of service are now eligible for the DVA-guaranteed loans
• DVA does not charge teh borrower for the guarantee; however, the borrower must pay up to a 3.3% funding fee to the DVA, on any no-down-payment loan, in addition to any other fees