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VA Loan Information
WHY A VA LOAN?
The more you know about our home loan program, the more you will realize how
little "red tape" there really is in getting a VA loan. These loans are often
made without any downpayment at all, and frequently offer lower interest rates
than ordinarily available with other kinds of loans. Aside from the veteran's
certificate of eligibility and the VA-assigned appraisal, the application
process is not much different than any other type of mortgage loan. And if
the lender is approved for automatic processing, as more and more lenders
are now, a buyer's loan can be processed and closed by the lender without
waiting for VA's approval of the credit application.
Additionally, if the lender is approved under VA's Lender Appraisal
Processing Program (LAPP), the lender may review the appraisal completed
by a VA-assigned appraiser and close the loan on the basis of that review.
The LAPP process can further speed the time to loan closing.
FIVE EASY STEPS TO A VA LOAN
- Apply for a Certificate of Eligibility.
A veteran who doesn't have a certificate can obtain one easily by completing VA
Form 26-1880, Request for a Certificate of Eligibility for VA Home Loan Benefits
and submitting it to one of the VA Eligibility Centers with copies of your
most recent discharge or separation papers covering active military duty
since September 16, 1940, which show active duty dates and type of discharge.
- Decide on a home the buyer wants to buy and sign a purchase agreement
- Order an appraisal from VA. (Usually this is done by the lender.)
Most VA regional offices offer a "speed-up" telephone appraisal system.
Call the local VA office for details.
- Apply to a mortgage lender for the loan.
While the appraisal is being done, the lender (mortgage company, savings
and loan, bank, etc.) can be gathering credit and income information.
If the lender is authorized by VA to do automatic processing, upon receipt
of the VA or LAPP appraised value determination, the loan can be approved
and closed without waiting for VA's review of the credit application. For
loans that must first be approved by VA, the lender will send the application
to the local VA office, which will notify the lender of its decision.
- Close the loan and the buyer moves in.
FREQUENTLY ASKED QUESTION # 23 [ -more VA Loan questions- ]
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Q: Does the VA Charge A Fee? - Are there fees associated with my VA home loan?
A: There is a "VA funding fee" required by law. A first-time buyer will pay a little over two percent for a 'no money down' loan, and a second time buyer's fee is just above three percent. The reason for the fee includes the idea that the veteran is reducing taxpayer burden by contributing to the cost of his VA mortgage. The higher fee for second-time borrowers presumes that there is equity in the home, or the borrower has had plenty of time to save in order to pay for the extra percentage. There is also a fee for VA refinance loans, and they fall within the same general price guidelines; just above two percent for first-timers and just above three percent for those who borrow again.
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VALoans.com is a private company specializing in VA financing and is
not a government agency.
Remember, the VA does not make home loans. They insure the loans that we can assist you in getting.
Let us help you get a VA insured mortgage loan at the lowest possible rates.
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