VA Loan Program

Question 1

What is a VA Loan Program?

Answer 1

The VA does not insure loans; the VA guarantees loans. Lenders originate VA loans for eligible veterans. The intent is to encourage lenders to offer veterans loans with more favorable terms.

Question 2

What is the Qualifying Debit to Income Ratios (DTI) for an A VA Loan?

Answer 2

41% back end

No front end Ratio

Question 3

What is the qualifying/down payment minimum Investment for purchase for a VA Loan?

Answer 3

0

Zero

Question 4

What is the seller’s allowable concession on a VA Loan?

Answer 4

4%

Question 5

What is the late fee for an FHA Loan?

Answer 5

4% P&I

Principal and Interest

Question 6

What is a DD 214

Answer 6

Discharge Papers or Report of Separation

NGB22/23 Army or N. Guard with 6 years of service must be Active

Question 7

What is a COE?

Answer 7

COE - Certificate of Eligibility

(Amount of Entitlement)

25% Guarantee of the purchase price

Question 8

What is the VA Funding Fee?

Answer 8

One-Time Variable

Funding Fee is 2.3%

Variable funding fee waived for disabled vets and surviving spouses

Question 9

Is a VA Loan Assumable?

Answer 9

Yes

However, the loan needs to be paid off befor it can bee used again

Question 10

Is there a prepayment penalty for a VA Loan?

Answer 10

NO

Question 11

What is the Lenders fee cap?

Answer 11

Lender can only charge 1% for fees

Question 12

Can a veterans spouses income be used for qualifing purposes?

Answer 12

Yes, if they are legally married

Question 13

What are the two types of appraisals for a VA Loan

Answer 13

CRV - Certificate of Reasonable Value

NOV - Notice of Value