DVA LOANS Flashcards

1
Q
  1. The Department of Veteran’s Affairs (DVA) partially
A

partially guarantees DVA loans

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2
Q
  1. DVA loans are made to
A

qualified military servicemen and women.

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3
Q
  1. DVA loans require no
A

no down payment (100% financing).

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4
Q
  1. DVA loans require no
A

no monthly insurance premium.

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5
Q
  1. On a DVA loan Generally look for DTI that does not exceed
A

look for DTI that does not exceed 41%

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6
Q
  1. DVA loans DO require a
A

non-refundable one-time variable funding fee at closing.

This is waived for disabled veterans and surviving spouses.

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7
Q
  1. DVA loans require a veteran to produce a
A

Certificate of Eligibility (COE)

which shows the amount of his entitlement

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8
Q
  1. On a DVA Loan a DD-214 (commonly called Discharge Papers or Report of Separation) is issued by the
A

Department of Defense

is required if the Veteran has been discharged

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9
Q
  1. On a DVA Loan a NGB 22/23 for Army or Air National Guard reservist with six or more years of reserve service
A

– required if currently “active”.

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10
Q
  1. On a DVA Loan a General Orders for members of the military, currently on active duty with qualifying services remaining -
A

required if currently “active”.

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11
Q
  1. An entitlement is the maximum amount that the DVA will “guarantee” on behalf of a Veteran. Veterans’ entitlement is based on 25% of the County Limit($647,200) in most counties). If an entitlement is insufficient, a
A

If an entitlement is insufficient, a cash down payment may be allowed for the balance.

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12
Q
  1. If legally married, spouse’s income may also be considered for qualification purposes. Non-married co-borrower is not allowed on a
A

DVA loan unless he or she is an eligible veteran who will occupy the home.

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13
Q
  1. Two eligible veterans may combine their
A

V.A Benefits to qualify for a larger loan

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14
Q
  1. The DVA doesn’t limit the price a veteran can pay for a house – but it does limit
    the amount it will guarantee to
A

25% of the purchased price (or value -whichever is less).

For example – if a home is selling for $350,000, the MAX amount the DVA will guarantee is $87,500 or 25% ($350,000 x 25%)

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15
Q
  1. A DVA appraisal is known as a
A

Certificate of Reasonable Value (CRV). It can also be called a Notice of Value (NOV).

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16
Q
  1. A V.A loan is
A

assumable; it does not have a due-on-sale clause.

17
Q
  1. DVA loans have a __% late fee (of the P&I only)
A

4% late fee (of the P&I only)

18
Q
  1. Lender may also charge a flat fee, up to __% of the loan amount, to cover the lender’s costs.
A

1% of the loan amount, to cover the lender’s costs.

19
Q
  1. Seller concessions exceeding __% of the established reasonable value of the property are unacceptable. Max seller concession on a DVA loan is ___%.
A

4% of the established reasonable value of the property are unacceptable. Max seller concession on a DVA loan is 4%.

20
Q
  1. Residual income is the amount that is
A

Left over to purchase necessities like food and gasoline after all other expenses are paid.

(The numbers are based on a report filed by the Department of Labor’s Bureau of Labor Statics and is available on their website.)

21
Q
  1. No mortgage insurance(On V.A Loans), Instead of mortgage insurance, there is a
A

one-time variable VA funding fee that can be included in the loan.

22
Q
  1. The DVA typical funding fee is
A

2.30 percent of the purchase price of the home.

23
Q
  1. If legally married, spouse’s income may also be considered for qualification purposes:
A

non-married co-borrower is not allowed on a DVA loan unless he or she is an eligible veteran who will occupy the home.

24
Q
  1. Two eligible veterans may combine their DVA Benefits to
A

to qualify for a larger loan.

25
Q
  1. The lender sets the interest rate on V.A loans, not the ___.
A

not the DVA. (Department of Veterans Affairs)

26
Q
  1. The maximum term for a DVA loan is
A

30 years, and the late fee is 4% of the monthly P&I.