Not everyone can qualify for a VA Loan. You must have served in the military. Also, not every lender is VA Direct Endorsed. A direct endorsed
lender can process and approve a VA loan in-house, without sending the file to
the VA for approval. The only thing that they will need to go through VA for is the
appraisal. This makes the loan process as fast as FHA and Conventional Loans. So if you use a VA Direct Endorsed Lender you could close on your new home in thirty days.
Helpful Information About V.A. Loans:
- VA loans do not require down payments.
- A clear Wood Destroying Insect Report is
required at closing. The report must also not have any conducive conditions- so
be sure and check for that when you get the report. If there are conducive
conditions, they must be corrected and a new report produced showing no
evidence of infestation or conducive conditions. The buyer is not allowed to
pay for the termite report, seller must pay for it at closing or reimburse the
buyer, so be sure the invoice as well as the report get to lender prior to closing.
- If the property has well or septic system, an
inspection is always required by a licensed inspector.
- The seller can pay up to 4% of sales price
towards borrowers closing costs in addition to points for the borrower.
- The maximum loan amount for VA loan is $417,000.
- If a borrower has used their VA eligibility
before, they may still use it again if it has been restored (they may even have
a second VA loan if they have not used all their eligibility on the first
- VA loans must be owner occupied loans only- they
cannot be used for second homes or investment property.
- There is no Mortgage insurance on a VA loan, but
there is a Funding Fee which can be rolled into the note or paid by the seller or