Does a manufactured home qualify for a 30-year loan?
Yes. However, the manufactured home will have to be permanently installed on a foundation.
This includes removal of the tongue and wheels, and anchoring the manufactured home to a
masonry perimeter foundation wall with interior masonry mortared piers on concrete footings.
The home will also have to be taxed as real estate in the county in which it is set up.
Can a veteran build a home and finance it VA?
Yes. The veteran can hire a builder or act as his/her own general contractor.
Can a VA loan on a house in a Condominium or Planned Unit Development (PUD) be
Yes. However, if there is a mandatory homeowner’s association fee to cover the amenities,
certain legal documents establishing the condominium association will have to be submitted to
VA for approval prior to guaranty. If HUD has already approved the condominium development,
then VA will accept HUD’s approval.
PUDs are no longer reviewed and approved by VA. This task is the lender’s responsibility.
Are lenders required to ask for “green cards” when one or both applicants may be noncitizens?
Presently, VA has no requirement for lenders to establish legal residency of a party who may not
be a citizen.
What documentation is needed when considering potential employment (for example, an
active duty person due to be released and planning to start employment)?
In cases where a person is relying on potential employment, the lender must obtain verification of
a valid offer of employment. All data pertinent to sound underwriting (procedures, date
employment will begin, earnings, etc.) must be included.
Can a lender grant a borrower some or all of the closing costs?
Yes. Some lenders have programs targeted at low to moderate-income borrowers that grant
closing costs to borrowers to enable the transaction to be completed. This is not considered a
seller’s concession and VA has no objections to this type of program
What is VA’s position on “trailing spouses”?
Trailing spouse issues should be treated on a case by case basis. For example, if the spouse of an
active duty member who gets transferred is a physician, it is reasonable to assume she or he will
be able to quickly generate employment income at the new location. However, most cases will
not be as obvious as this and will need to be looked at on their own merits.
If a reservist fails to complete six years in the Selected Reserves, but is later determined to
have incurred a service-connected disability, is home loan eligibility established?
No. Unless the individual is specifically discharged due to a service-connected disability,
eligibility is not established.
Is a veteran exempt from the funding fee if his/her compensation is being withheld to pay a
debt (overpayment, etc.)?
Yes. In cases like this, the veteran is considered to be in receipt of compensation. It is merely
being redirected temporarily to liquidate a receivable.
Is a veteran still exempt from the funding fee if recalled to active duty?
No. The veteran stops receiving disability compensation when called back to active duty. The
requirement for exemption from the funding fee is that the veteran is “in receipt” of disability
compensation. After discharged from the call-up, the veteran will again have to apply for
Is a “General” discharge acceptable for a person establishing eligibility based on six years’
service in the Reserves/National Guard?
No. The law states the person must have received an “Honorable” discharge. This is different
from service in the “regular” military where a discharge or release only has to be under other than
In joint loan cases where the parties are not married and one wishes to convey his/her
interest to the other party, does the lender or VA process the assumption?
The lender, if they have automatic authority, must process these cases. If the parties had been
married and title was being transferred as a result of dissolution of marriage (i.e. divorce), lender
processing would not be allowed. In those cases, the parties have the option of applying directly
to VA for any desired release of liability.
Does VA still use maintenance and utility charts for each state?
No. The calculation for maintenance and utilities is now 14 cents a square foot, all inclusive,
Can a “Cash-Out” refinance loan, with a subordinated second mortgage exceed VA’s 90
percent loan limit?
Yes, as long as the VA “first” mortgage does not exceed 90 percent and the second lien holder
agrees to subordinate.
When can the borrower receive cash at a closing from an Interest Rate Reduction Refinance
An IRRRL cannot be used to take equity out of the property or pay off debts, other than the VA
loan being refinanced. The general rule is that the borrower cannot receive cash proceeds from
the loan. However, the veteran may be reimbursed for energy efficient modifications made to the
home within 90 days of closing the IRRRL.
Is a new loan number required for an IRRRL?
Yes. Do not use the old VA case number. When ordering a number in TAS, select "requester"
then "assignment" then "loan number only". Make sure the new VA case number is higher than
the old VA case number.
Is a CAIVRS screening required for an IRRRL?
Yes. A CAIVRS screening is required for all VA guaranteed loans.
Mortgage Loan Officer