Basic Understanding of a Kentucky VA Mortgage Loan Approval Process.
The VA makes a guarantee to the lending institution (the
insurance)-for 25% of the loan amount (from a lenders
perspective the effective LTV is 75%).
Because the risk to the bank is reduced, the bank can provide
more affordable loans to the Veteran:
• Eliminating the need for a down payment (100% Mortgage)
• Provides the Veterans favorable interest rates
• Eliminating Mortgage Insurance (NO PMI)
Crushing the Myths of the VA Loan
• VA Mortgage Benefits do not expire.
• You can use your VA benefits as many times as you wish.
• You can have more than 1 at a time. (See occupancy rules)
• There is no limit to the size of a VA loan. (There is a county
loan limit, but veterans can purchase above the county loan
limit with a 25% down payment)
• Credit and risk is reviewed differently by each bank
and lender.
• Even with a foreclosure or short sale, the veteran may still be
able to buy a house with a VA loan. (See burnt entitlement,
veteran might have reduced buying power, but can still
use the VA loan). The VA understands that bad things can
happen to good people.
• VA Appraisals are significantly different than they use to be.
What military documents would I need
to have in order to get a VA mortgage?
I don’t know if I still have my documents from when I
served. How can I retrieve them?
There are three websites that should be able to help you, they are:
archives.gov/veterans/military-service-records/
*If you have difficulty retrieving information from any of these sites,
the local recruiting office for your branch would be able to assist.
I have my discharge paperwork, but would like help
obtaining my Certificate of Eligibility
Contact your lender.
I served, but it was a very long time ago. Do my VA
benefits for a mortgage expire?
No, VA Home Loan benefits never expire. You can use your
VA benefit as long as you’re alive.
I used my VA mortgage along time ago to buy a
home. That means I can’t use it again, right?
The VA Mortgage can be used several times over. If the previous
home was sold, your entitlement should be fully reinstated.
What is the minimum credit score to obtain
a VA mortgage?
The VA does not have a minimum credit score, but lenders will
have their own internal overlay. If your score is greater than 580,
you are likely a candidate for the VA mortgage.
Can I use the VA loan to buy a condo?
You can, with the same terms as buying a detached single family
residence. However, we do have to see if the condo association
is VA approved. Check this website:
vip.vba.va.gov/portal/VBAH/VBAHome/condopudsearch
I relocated here and have a home in my hometown. I
kept the home and it has a VA mortgage on it now.
Can I get another VA mortgage?
You can get another VA Mortgage. Mortgage
will calculate your remaining entitlement to compute your
maximum loan amount with no money down and/or what
you would have to put down if you exceed the remaining
entitlement.
Can I build a home with a VA Home Loan?
Yes, but there are several clauses that may make this difficult
to accomplish. Many veterans use their VA Home Loan
Certificate of Eligibility to negotiate in good faith a private home
construction loan and then refinance the completed home using
VA Home Loans.
I heard the VA Mortgage was more expensive than
other mortgage types. Is that true?
There is a mandatory funding fee on all VA mortgages (unless
the borrowing veteran is receiving a VA related disability, then
the funding fee is waived). The funding fee is built over and
above the loan amount and the fees are as below.
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