NCh7 VA - Department Of Veterans Affairs Flashcards
What portion of the loan does the VA guarantee?
Top 25% of the loan
Which party is responsible for the required funding fee of the VA loan?
It may be paid by the buyer or the seller at closing or included in the loan
What type of down payment is needed on a VA loan?
Generally, the veteran needs a 0 down payment
Is the VA loans assumable?
Yes
Can the VA loan be pre-paid without penalty?
Yes
Under VA assumption, what would the original veteran borrower need to be released from the loan?
A release of liability from the VA
Under VA assumption, what is required for the original veteran to obtain a restoration of their entitlement?
The assumption must be by a qualified veteran, using his or her own entitlement
On assumption of a VA loan what is required of the new borrower?
The new borrower does not have to be a veteran, but does need VA or lender approval
What happens to the veterans entitlement if they pay off their loan?
The veterans entitlement is restored
What happens if a non-veteran assumes the loan?
The veterans entitlement is tied up until a refinance or sale occurs
What must a veteran obtain from the VA to begin the process of getting a VA loan?
Certificate of eligibility
What is the certificate of eligibility based on?
Ability to pay
What is the VA appraisal that must meet or exceed the sale price called
Certificate of reasonable value
What options are available to a veteran if the certificate of reasonable value does not meet or exceed the sale price?
The veteran can
Cancel the sale
Pay the difference between price and appraisal
Ask the seller to renegotiate
What are VA loan interest rates set by?
Market conditions
