DVA Loans

Question 1

Are DVA loans guaranteed?

Answer 1

The Department of Veteran’s Affairs (DVA) partially guarantees DVA loans.

Question 2

Who are DVA loans made to?

Answer 2

DVA loans are made to qualified military servicemen and women.

Question 3

What is the down payment minimum for DVA loans?

Answer 3

DVA loans require no down payment (100% financing).

Question 4

What is the monthly insurance premium on a DVA loan?

Answer 4

DVA loans require no monthly insurance premium.

Question 5

What is the DTI for a DVA loan?

Answer 5

On a DVA loan Generally look for DTI that does not exceed 41%

Question 6

DVA loans do require a non-refundable _________________ at closing. This is waived for _________ and ____________.

Answer 6

one-time variable funding fee; disabled veterans and surviving spouses

Question 7

DVA loans require a veteran to produce a _________, which shows the amount of his/her _______.

Answer 7

Certificate of Eligibility (COE); entitlement

Question 8

What is required if a Veteran has been discharged?

Answer 8

On a DVA Loan a DD-214 (commonly called Discharge Papers or Report of Separation) is issued by the Department of Defense – is required if the Veteran has been discharged.

Question 9

What is required of Army or Air National Guard reservists with six or more years of reserve service if currently “active”?

Answer 9

On a DVA Loan a NGB 22/23 for Army or Air National Guard reservist with six or more years of reserve service – required if currently “active”.

Question 10

What is required for members of the military currently on active duty with qualifying services remaining if currently active?

Answer 10

General Orders

Question 11

What is an entitlement on a DVA loan?

Answer 11

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 cash down payment may be allowed for the balance. $144,000

Question 12

If married, can a spouses income be considered for qualification purposes?

Answer 12

yes

Question 13

What is required of a non-married co-borrow to be on the DVA loan?

Answer 13

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

Question 14

How could a larger loan be qualified?

Answer 14

Two eligible veterans may combine their DVA Benefits to qualify for a larger loan.

Question 15

Does the DVA limit the price a veteran can pay for a home? How much will it guarantee?

Answer 15

The DVA doesn’t limit the price a veteran can pay for a house – but it does limit the amount it will guarantee to 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 ($350,000 x 25%).

Question 16

What is a DVA appraisal called?

Answer 16

A DVA appraisal is known as a Certificate of Reasonable Value (CRV). It can also be called a Notice of Value (NOV).

Question 17

Is a DVA loan assumable or nonassumable?

Answer 17

A DVA loan is assumable; it does not have a due-on-sale clause.

Question 18

What is the late fee of a DVA loan?

Answer 18

DVA loans have a 4% late fee (of the P&I only).

Question 19

What can a lender charge?

Answer 19

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

Question 20

What is the max seller concession on a DVA loan?

Answer 20

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

Question 21

What is residual income?

Answer 21

Residual income is the amount that is 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.

Question 22

Does a DVA loan require mortgage insurance?

Answer 22

No mortgage insurance. Instead of mortgage insurance, there is a one-time variable DVA funding fee that can be included in the loan.

Question 23

What is the typical DVA funding fee?

Answer 23

The DVA typical funding fee is 2.30 percent of the purchase price of the home.

Question 24

What can two eligible veterans do to qualify for a larger loan?

Answer 24

Two eligible veterans may combine their DVA Benefits to qualify for a larger loan.

Question 25

What is the max term on a DVA loan and the late fee?

Answer 25

The maximum term for a DVA loan is 30 years, and the late fee is 4% of the monthly P&I