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VA Loan Basics: Using A Real Estate Agent To Your Advantage
Posted on March 17, 2010
Filed Under Loans, VA Mortgages | Comments Off
Welcome back!
There is a whole process involved with purchasing a home using financing. If you are a veteran and you have decided to use a VA loan the same rules apply when it come to viewing and inspecting a potential home. You will want to adhere to a few non-nonsense guidelines when you start looking for a new house.
Since having a professional eye can be a great benefit, it is better that homebuyers retain the services of state-licensed real estate agents to help them in house search process. These agents will be able to help you find affordable price ranges, make suggestions about particular features of a home that may be preferable to their clients, schedule tours of candidate homes, and deal with the sales contracts and other paperwork attached to home buying.
These state-licensed real estate agents will be able to clarify the legal requirements for buyers and sellers as well as offer advice on what lender and certified home inspectors to choose.
VA Loan Guideline Restrictions
Posted on March 3, 2010
Filed Under Lenders, Loans, VA Mortgages | Comments Off
Having an idea about what the restrictions are under the official VA loan guidelines can help you in making a decision about financing. Basically, VA Loans can be used to buy or build a primary residence, refinance a current VA Loan, as well as provide a refinancing option for standard loans or other forms of debt obtained by record of lien. These loans can also be used to make home improvements or renovations for the purposes of increasing energy efficiency.
According to these same guidelines, you cannot use a VA loan to purchase l and, investment properties, or non-residential items like RVs or houseboats. Furthermore, a VA loan cannot be used to buy multiple units in a housing complex unless the applying veteran plans to use these units as part of his or her main place of residence.
There are a number of reasons to consider VA loans but it is important to keep the restrictions in mind so you can make the right decisions about what course to take as far as what type of home financing you plan to use.
Why Do VA Loans Exist?
Posted on February 17, 2010
Filed Under Loans, VA Mortgages | Comments Off
What is the fundamental reason that VA loans exist? This is a serious question with an equally serious answer. As you may know, the Veterans Administration or the Department of Veterans Affairs is dedicated to providing military veterans with assistance in a number of areas including financial, educational, and medical.
The real heart of this question can be exemplified by the brave men and women who have chosen to serve their country by enlisting in one of the branches of the armed forces. This is a major sacrifice for a number of reasons. These men and women have given up time that could have been spent developing careers or establishing business ventures, as well as other forms of gainful employment. This can create some disadvantages when it comes time to take off the uniform and become a civilian once again.
This is why the VA Loan Program exists. It is there to give veterans back an edge or advantage and reward them for their service. At no point is this more appreciated than when it comes to buying a new home. The VA’s low interest and no down payment loans have given millions of veterans the opportunity they would not have had otherwise.
Have You Considered Selling Your VA Loan Obtained Home
Posted on February 3, 2010
Filed Under VA Mortgages | Comments Off
In some cases, it is better to your house and make back some money on the equity you’ve built than to keep the property. This is as true of those who have purchased their homes with a VA home loan as it is for those who used an FHA or other type of loan. Yet, there are some definite policy issues you should keep in mind if you intend to sell the property.
First, you need to understand that even if you sell the property you initially purchased using a VA loan you will still be liable for payment on that loan until you notify the proper authorities. The borrower is required to provide notification to either the Veterans Administration or to the lender of the sale. Then a request for a “release from liability” should be placed with the VA and the liability should then be transferred to the new owner.
One exception does exist to this policy. If the loan was closed prior to March 1, 1988, no notification will be needed. Nonetheless, you should still go ahead and get the “release from liability” from the local VA office to serve as evidence of the transfer of ownership.
What Happens To A VA Loan After The Veteran Passes Away?
Posted on January 20, 2010
Filed Under Loans, VA Mortgages | Comments Off
The question will come up eventually? What will happen to a home mortgage loan in the event the borrower dies unexpectedly or passes away after a long illness? The question remains the same whether you are talking about traditional types of loans or VA-guaranteed loans.
Unless some sort of mortgage life insurance coverage is obtained by the borrower, the responsibility of the mortgage loan transfers to the spouse of the deceased veteran or to the veteran’s immediate family, or even to an estate. After all, the payments still have to be made. Yet, with the VA, there are other resources like its “Leniency Policy” than can be referenced in these circumstances. This policy provides forbearance for qualified borrowers who have encountered financial or medical difficulties.
If you want mortgage life insurance, you will need to obtain coverage from a private insurance company that offers this type of policy since the Veterans Administration does not offer such coverage.
Does The VA Allow Foreign Home Purchases?
Posted on January 6, 2010
Filed Under VA Mortgages | Comments Off
Depending upon the particular circumstances, financially speaking, of the borrower, many veterans have considered the prospect of purchasing homes in other countries. The problem with this idea is that there are serious policy obstacles in the way. Basically, the Veterans Administration does not allow veterans to obtain mortgages for homes or other properties outside the United States. Yet, this is not an absolute policy since there are some stipulations or exceptions to note.
The VA allows you to buy homes or other real estate in so-called “American territories and possessions.” If you are not familiar with these regions, they include Puerto Rico, Virgin Islands, American Samoa, Guam, as well as the Northern Mariana Islands. All of normal procedures and rules for obtaining a VA mortgage apply in these areas. Of course, it does not hurt to contact a representative from the VA to learn more about any other types of requirements of conditions that relate to local laws in these territories.
Ways To Enhance VA Eligibility: Try Improving Your Credit
Posted on December 23, 2009
Filed Under Lenders, Loans, VA Mortgages | Comments Off
Since debt ratio is such a important factor that determines your eligibility for a VA loan it may be a great idea to concentrate some time and effort to repairing or improving your credit. The goal is to deal with problems in your credit history that may hinder your opportunities rather than enhance your VA eligibility.
Certainly, it is recommended that you speak to a credit counselor to find the best strategies for producing real results and strengthening your credit rating. There are some basic steps that you can take to increase your chances.
High interest debt sources like credit card should be tackled before moving on to lower interest loans since they can have the most impact on your credit rating. Focus on eliminating as much credit card debt as possible. You will start to see real improvement on your debt ratio if you can limit how many cards you have and keep that single card paid regular for a half a year or so.
House Finding Alternatives For Those With VA Loan Pre-Approval
Posted on December 9, 2009
Filed Under VA Mortgages | Comments Off
In many instances, even those veterans who have proven eligible for a VA home loan and who may have received pre-approval, the task of finding the house may be the most difficult part. Most often this difficulty is due to the state of the house market in their particular location.
There are certain parts of the country where it is not uncommon to find slow or halted house markets. Fortunately, there are some genuine alternatives available for homebuyers who aren’t having any luck locating a decent house. One such alternative made available by the Veterans Administration is the offering of repossessed or foreclosed homes to qualified buyers. A second option might be investigating local or state-funded programs that exist to help veterans find and purchase homes. These state operated programs exist independently of their federal counterparts. It is up to you to get in contact with a local VA office to learn what programs may actually be available in your area.
Taking Advantage of VA Home Foreclosures
Posted on November 25, 2009
Filed Under Loans, VA Mortgages | Comments Off
It is an unfortunate reality for many homeowners who are paying monthly mortgage payments. Many borrowers find themselves in adverse financial circumstances that can lead to missed payments and defaulting on their loan agreements. This can lead to foreclosures.
The Department of Veterans Affairs obtains the properties of veterans that have gone into foreclosure due to defaults on their VA-guaranteed home loans. Many of the acquired properties are subsequently marketed through various property management services contracts with different financial institutions and real estate agencies. These properties are then listed by local listing agents who use local Multi Listing Systems.
These inventories include all of the properties seized due to foreclosures. Potential buyers may access these databases to search for a home if they have had trouble locating properties through normal channels. Once the homebuyer finds a likely home candidate they can contact a local real estate agent to get them access to tour the property.
The Importance Of The DD214 Form To Obtaining A VA Loan
Posted on November 11, 2009
Filed Under Loans, VA Mortgages | Comments Off
Perhaps, one of the most important military documents you have as a veteran is the DD214, which is the paperwork that details your discharge from the armed forces. This document serves as proof of your military status, meaning whether you are discharged, retired, or separated. The DD214 will also detail the nature of your discharge as well as if your status with the Reserve or the National Guard.
When it comes to qualifying for a VA home loan, the DD214 is an indispensable piece of information. Without it, you will be eligible for one of these loans. If you cannot obtain a copy of your discharge record you can obtain a replacement by contacting the National Personnel Records Center. This is typically done via postal mail. You must complete a SF-180 form and include it with a letter that describes your reasons for requesting a replacement and pertinent identification like name, rank, and social security number.
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