VA Loans Flashcards
Do VA loans allow for 100% financing?
Yes, for qualified military borrowers
Do VA loans have a maximum loan amount?
VA loans do not have a maximum loan amount but they do have a maximum guarantee amount.
Does VA use Fannie Mae conforming loan limits?
VA uses the Fannie Mae conforming loan limits as a maximum guarantee amount for most counties around the country.
How much will VA guarantee?
VA will guarantee 25% of the loan amount up to the guarantee amount in the event of the borrower’s default
What is the housing expense ratio (front end ratio) for VA Loans?
41%
What is the DTI ratio (back-end ratio) for VA loans?
41%
Lenders usually loan up to ___ times a veteran’s available entitlement without a down payment.
4
On what document is a veteran’s entitlement listed?
COE or Certificate of Eligibility
To be eligible for VA guaranteed financing, the veteran must show which documents?
DD-214 and Certificate of Eligibility (COE)
What are the details of the VA funding fee?
It is a fee assessed by the VA to receive a VA guaranteed loan; it is non-refundable if loan paid off; it can be incorporated into the loan amount or paid by the seller; disabled vets and surviving spouses do not have to pay the funding fee; the greater the down payment the lower the funding fee; funding fees are upfront not annual
For VA loans, seller contributions are limited to what percentage?
4% of sales price
What is a VA appraisal called?
Certificate of Reasonable Value (CRV)
For VA loans the lender can charge a ____% flat fee to cover origination fees.
1%
The VA loan program is the only loan program that underwrites loan with significant emphasis on _____________ when qualifying the borrower for a VA guaranteed loan
Residual income, which is the amount of income leftover at the end of the month after paying all debts including mortgage
