DVA LOANS

Question 1

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

Answer 1

partially guarantees DVA loans

Question 2

586. DVA loans are made to

Answer 2

qualified military servicemen and women.

Question 3

587. DVA loans require no

Answer 3

no down payment (100% financing).

Question 4

588. DVA loans require no

Answer 4

no monthly insurance premium.

Question 5

589. On a DVA loan Generally look for DTI that does not exceed

Answer 5

look for DTI that does not exceed 41%

Question 6

590. DVA loans DO require a

Answer 6

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

( This is waived for disabled veterans and surviving spouses.)

Question 7

591. DVA loans require a veteran to produce a

Answer 7

Certificate of Eligibility (COE)

(which shows the amount of his entitlement)

Question 8

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

Answer 8

Department of Defense

(is required if the Veteran has been discharged)

Question 9

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

Answer 9

– required if currently “active”.

Question 10

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

Answer 10

required if currently “active”.

Question 11

595. 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

Answer 11

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

Question 12

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

Answer 12

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

Question 13

597. Two eligible veterans may combine their

Answer 13

V.A Benefits to qualify for a larger loan

Question 14

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

Answer 14

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%)

Question 15

599. A DVA appraisal is known as a

Answer 15

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

Question 16

600. A V.A loan is

Answer 16

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

Question 17

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

Answer 17

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

Question 18

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

Answer 18

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

Question 19

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

Answer 19

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

Question 20

604. Residual income is the amount that is

Answer 20

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 21

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

Answer 21

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

Question 22

606. The DVA typical funding fee is

Answer 22

2.30 percent of the purchase price of the home.

Question 23

607. If legally married, spouse’s income may also be considered for qualification purposes:

Answer 23

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 24

608. Two eligible veterans may combine their DVA Benefits to

Answer 24

to qualify for a larger loan.

Question 25

609. The lender sets the interest rate on V.A loans, not the ___.

Answer 25

not the DVA. (Department of Veterans Affairs)

Question 26

610. The maximum term for a DVA loan is

Answer 26

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