VA LOANS and how to find the lenders

V A LOANS

What are VA loans?	They are loans that are insured by the Veteran's Administration.
What are the occupancy requirements?	Owner occupied only.
Who can be on the VA loan?	The veteran and his spouse only. No co-signors.
Is there any type of monthly mortgage insurance?	No.
Does the VA charge any type of fee for using your VA eligibility?	Usually, the funding fee is waived for those veterans who are receiving disability compensation from the BA, and for the surviving spouses of veterans who died in service or who received BA disability compensation. Otherwise, the funding fee is 2% for first time use and 3% for each subsequent use.
Does the amount you put down affect your funding fee?	Yes, the more you put down, the smaller your funding fee. 1.5% for 5% to 10% down payment, more than 10% down it goes down to 1.25%.
Can the funding fee be financed?	Yes, the funding fee can be financed or paid for by the buyer or seller.
What type of income is required for approval?	There are no income restrictions or minimum income requirements. In general, VA doesn't want more than 41% of the veteran's gross monthly income to be used to service all of their monthly debt. Exceeding 41% is possible if you can meet the residual income requirements.
What type of credit is required?	Bankruptcies and foreclosures should be 3 years old. 12 months of clean credit is also required. Can be alternate credit.
How much is required for the down payment?	Nothing. VA loans allow for 100% of the purchase price to be financed. This does not include closing costs. The seller can contribute the buyers closing costs and prepaids, so that the veteran can essentially come in with no money down.
What is the maximum contribution from seller to cover closing costs and prepaids?	4%
Are gifts allowed?	Yes, gifts used for a down payment or to pay closing costs are allowed.
What type of work history is required?	A 2 year work history is required.
Are reserves required?	No reserves are required.
What is the maximum VA loan?	$203,000 including the funding fee. VA Jumbo to $275,000 requires more down payment.
What else is required?	A termite inspection.
How should I get started?	Find a VA lender or find a real estate agent who knows VA procedures

Find a VA Lender - Find a Real Estate Agent who knows VA procedures

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The information provided herein is to give you an idea of what your finance options are, but may not be up to date, correct or applicable in your case. See a tax advisor, attorney, real estate agent or lender for assistance.