VA Loans

Question 1

A VA Loan is guaranteed by which organization? And by how much?

Answer 1

1. ) The Veterans Benefits Administration

2. ) 25% of the purchase price or the appraised value (whichever is lower).

Question 2

Who qualifies for VA Loans?

Answer 2

Veterans based on length of service w/ required documentation:

1. ) DD-214 discharge papers
2. ) COE (Certificate of Eligibility (max. guaranty $106,025)

Question 3

What is the qualifying ratio for VA Loans?

Answer 3

Total debt to income ratio: 41%

Question 4

How much of a down payment is needed for a VA Loan?

Answer 4

No down payment is needed.

Question 5

What Notices must be given in relation of the Appraisal of a VA Loan?

Answer 5

1. ) Notice of Value (NOV), or

2. ) Certificate of Reasonable Value (CRV)

Question 6

In accordance of VA Loans, what is the occupancy requirements?

Answer 6

The real estate must be occupied as principal residence within 60 days of closing loan, for at least 12 months.

Question 7

If two eligible veterans want to combine their VA benefits to qualify for a larger loan? Is this allowed?

Answer 7

Yes

Question 8

If legally married, spouse’s income may also be considered for qualification purposes—true or false?

Answer 8

True

Question 9

A Non-married co-borrower is allowed on a VA Loan, as long as we they are not veterans—true or false?

Answer 9

False

Question 10

If a Veteran has used some entitlement on a previous purchase, are they able to use left over entitlement on another purchase?

Answer 10

Yes, under 2 conditions:

1. ) The property, securing the VA loan, has been sold and that loan has been paid in full.
2. ) An eligible veteran has agreed to assume the outstanding balance on a VA loan and substitute his entitlement for the same amount originally used on the loan.

Question 11

For VA Loans, a non-refundable one-time variable funding fee at closing is waived for who?

Answer 11

1. ) Disabled veterans

2. ) Surviving Spouses of veterans who died in service.

Question 12

For VA Loans, how much of a flat fee can be charged to cover lender costs?

Answer 12

1%

Question 13

For VA Loans, what percentage can not be exceeded for seller concessions (closing cost)?

Answer 13

4%

Question 14

Who sets the interest rate on VA loans?

Answer 14

The lender, not the VA.

Question 15

For a VA loan, what is the maximum term and the late fee?

Answer 15

1. ) 30 years

2. ) 4% of the monthly P & I