DVA Loans Flashcards
Are DVA loans guaranteed?
The Department of Veteran’s Affairs (DVA) partially guarantees DVA loans.
Who are DVA loans made to?
DVA loans are made to qualified military servicemen and women.
What is the down payment minimum for DVA loans?
DVA loans require no down payment (100% financing).
What is the monthly insurance premium on a DVA loan?
DVA loans require no monthly insurance premium.
What is the DTI for a DVA loan?
On a DVA loan Generally look for DTI that does not exceed 41%
DVA loans do require a non-refundable _________________ at closing. This is waived for _________ and ____________.
one-time variable funding fee; disabled veterans and surviving spouses
DVA loans require a veteran to produce a _________, which shows the amount of his/her _______.
Certificate of Eligibility (COE); entitlement
What is required if a Veteran has been discharged?
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.
What is required of Army or Air National Guard reservists with six or more years of reserve service if currently “active”?
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”.
What is required for members of the military currently on active duty with qualifying services remaining if currently active?
General Orders
What is an entitlement on a DVA loan?
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
If married, can a spouses income be considered for qualification purposes?
yes
What is required of a non-married co-borrow to be on the DVA loan?
Non-married co-borrower is not allowed on a DVA loan unless he or she is an eligible veteran who will occupy the home.
How could a larger loan be qualified?
Two eligible veterans may combine their DVA Benefits to qualify for a larger loan.
Does the DVA limit the price a veteran can pay for a home? How much will it guarantee?
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%).
What is a DVA appraisal called?
A DVA appraisal is known as a Certificate of Reasonable Value (CRV). It can also be called a Notice of Value (NOV).
Is a DVA loan assumable or nonassumable?
A DVA loan is assumable; it does not have a due-on-sale clause.
What is the late fee of a DVA loan?
DVA loans have a 4% late fee (of the P&I only).
What can a lender charge?
Lender may also charge a flat fee, up to 1% of the loan amount, to cover the lender’s costs.
What is the max seller concession on a DVA loan?
Seller concessions exceeding 4% of the established reasonable value of the property are unacceptable. Max seller concession on a DVA loan is 4%.
What is residual income?
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.
Does a DVA loan require mortgage insurance?
No mortgage insurance. Instead of mortgage insurance, there is a one-time variable DVA funding fee that can be included in the loan.
What is the typical DVA funding fee?
The DVA typical funding fee is 2.30 percent of the purchase price of the home.
What can two eligible veterans do to qualify for a larger loan?
Two eligible veterans may combine their DVA Benefits to qualify for a larger loan.
What is the max term on a DVA loan and the late fee?
The maximum term for a DVA loan is 30 years, and the late fee is 4% of the monthly P&I
