VA

Question 1

What does VA stand for in VA loans?

Answer 1

Veterans Affairs

Question 2

True or False: VA loans require a down payment.

Answer 2

False

Question 3

What is the primary purpose of VA loans?

Answer 3

To provide financial assistance to veterans and active-duty service members for purchasing homes.

Question 4

Fill in the blank: VA loans are guaranteed by the _____ Department.

Answer 4

U.S. Veterans Affairs

Question 5

Which of the following is NOT a benefit of a VA loan? A) No down payment B) No mortgage insurance C) Higher interest rates

Answer 5

C) Higher interest rates

Question 6

What is the maximum loan amount for a VA loan in most areas as of 2023?

Answer 6

The maximum loan amount varies by county, but it can be up to $1,089,300 in high-cost areas.

Question 7

True or False: VA loans can only be used for purchasing single-family homes.

Answer 7

False

Question 8

What is the purpose of the VA Funding Fee?

Answer 8

To help offset the costs of the VA loan program and is typically a percentage of the loan amount.

Question 9

What is the typical credit score requirement for a VA loan?

Answer 9

While there is no minimum credit score requirement, a score of 620 or higher is often recommended.

Question 10

True or False: VA loans can be used for refinancing existing loans.

Answer 10

True

Question 11

What type of property can be financed with a VA loan?

Answer 11

Single-family homes, condos, multi-family homes (up to four units), and some types of manufactured homes.

Question 12

Fill in the blank: VA loan eligibility is determined by the _____ of service.

Answer 12

length

Question 13

What document is required to verify eligibility for a VA loan?

Answer 13

Certificate of Eligibility (COE)

Question 14

True or False: VA loans have no prepayment penalties.

Answer 14

True

Question 15

What is the primary difference between a VA loan and a conventional loan?

Answer 15

VA loans do not require a down payment and do not have mortgage insurance.

Question 16

What is the purpose of the VA’s ‘Basic Allowance for Housing’ (BAH)?

Answer 16

To help service members cover their housing costs.

Question 17

Which veterans are eligible for VA loans?

Answer 17

Veterans, active-duty service members, National Guard members, and some surviving spouses.

Question 18

What is the significance of a VA loan’s ‘no mortgage insurance’ benefit?

Answer 18

It reduces the monthly payment and overall cost of the loan.

Question 19

What is the purpose of the VA’s interest rate reduction refinancing loan (IRRRL)?

Answer 19

To help veterans refinance their existing VA loans at a lower interest rate.

Question 20

How long must a veteran serve to be eligible for a VA loan?

Answer 20

At least 90 days of active service during wartime or 181 days during peacetime.

Question 21

Fill in the blank: VA loans are designed to help veterans achieve _____ home ownership.

Answer 21

affordable

Question 22

True or False: VA loans can be assumed by another eligible borrower.

Answer 22

True

Question 23

What is the maximum term length for a VA loan?

Answer 23

Typically 30 years.

Question 24

What is the primary requirement for a property to qualify for a VA loan?

Answer 24

It must be the borrower’s primary residence.

Question 25

What does the term ‘entitlement’ refer to in the context of VA loans?

Answer 25

The amount of loan guaranty available to a veteran.