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5 Easy Steps to a VA Home Loan
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Why
a VA Loan is the Veteran's Best Choice
- No Down
Payment
- Freely
Negotiable Fixed-Interest Rate
- Limitations
on Closing Costs
- Varied
Repayment Terms
- Right to
Repay Without Penalty
- Refinancing
Options
- No
Monthly Mortgage Insurance Premium
For Further
Details, Please Call 1-800-933-5499
VA
Home Loan in Five Steps
Step 1 - Determining the Eligibility
A military veteran, active duty person, or a member of
the national guard or selected reserves needs to request VA’s review of
discharge documents or statements of service, and VA’s determination of
eligibility for the guaranteed home loan benefit. Based on the applicant’s
length and type of service, VA issues a certificate for each person determined
eligible to apply for a home loan which will be guaranteed by VA. VA loans
require no down payment on a home purchase, and there is no upper limit or
required cap on the income of the borrower. The VA Certificate of Eligibility
can be obtained by the veteran or active duty person by mail or visit to a VA
regional office. The request is made on a VA Form 26-1880, Request for
Determination of Eligibility and Available Loan Guaranty Entitlement, available
from VA regional offices, and many lenders.
Click
here to download VA Form 26-1880.
Evidence of satisfactory military service, usually a DD 214, or a statement
of active duty, or proof of participation in the national guard or reserves,
must accompany the request to VA.
Step 2 - Viewing and Inspecting the Home
Home buyers usually use the services of state-licensed
real estate agents or brokers to determine an affordable price range, suggest
certain home features suitable for the buyer, arrange house hunting schedules,
view homes for sale, negotiate sales contracts and hold earnest money deposits.
Your state-licensed real estate professional can explain the many legal
requirements for buyers and sellers, and can refer buyers to local lenders who
originate VA guaranteed loans, and to local home inspectors. Buyers should
accompany their preferred home inspector during the inspection of the property
to ask questions about the condition of the foundation, roof and other parts of
the structure, as well as the heating, cooling, plumbing, and electrical
systems.
Step 3 - Requesting the Loan
Home buyers who wish to obtain a VA guaranteed loan
should make sure that the sales contract includes a phrase, sometimes called a
financing contingency, making the contract subject to approval for a VA loan.
Home buyers may even want to contact a lender before they sign a contract for a
home, so they can be pre-approved to borrow a certain maximum amount. Certain
lenders can process VA loans faster than others. These lenders are known as LAPP
lenders because they participate in VA’s Lender Appraisal Processing Program
and do not need to send any paper work to VA until after the home sale is
closed. Lenders verify and review the past and present job and credit of home
loan applicants and compare this information with loan approval guidelines
(credit standards) published by VA. If the documents with the loan request
indicate that the application cannot be approved, then additional written
information should be presented to the lender or VA in order to request
reconsideration of the loan request.
Step 4 - Appraising the Property
When an eligible veteran contacts a lender to request a
VA guaranteed loan, the lender obtains the name of a VA fee appraiser and loan
number for the request by computer and monitors progress of the appraisal and
loan application. The fee appraiser who will visit the property is
state-licensed and will furnish the lender and VA an opinion of the market value
of the property by way of a written appraisal report. The appraisal tells the
lender and VA whether the property is expected to be adequate collateral for the
requested loan. Neither the appraisal of the home nor the VA guaranty of the
loan is a warranty that might protect the buyer from latent construction defects
and resulting repair costs. Builders and brokers can issue warranties for the
condition of the home and operation of the home systems.
Step 5 - Closing the Sale
If the loan and the home are approved, the buyer needs
to contact a state-licensed insurance agent to obtain an insurance policy
(homeowner’s policy) that will protect the owner and lender from property
damage and loss. Title to the property is usually examined and insured by a
title insurance company which may also prepare closing documents and enter them
into public records after the closing. After the home is purchased and the loan
originated, the lender usually sells the active loan to another company which
will receive the loan payments and pay the real estate taxes and insurance
premiums.
Advantage of VA
Loans
The advantage of a VA guaranteed loan is that the buyer
does not need to make a down payment, and that the lender receives a certificate
of guaranty from VA to protect against loss from foreclosure. In this way the VA
guaranty takes place of a down payment which is normally required by lenders to
make a loan an acceptable risk.
Need more information?
View
VA Pamphlet 26-4, VA Guaranteed Home Loans for Veterans
Download
VA Pamphlet 26-5, Pointers for the Veteran Homeowner
View
VA Pamphlet 26-6, To the Home-Buying Veteran
Questions on Veteran
Eligibility, E-Mail the VA Eligibility Center in Winston-Salem, NC: NCELIGIB@vba.va.gov
Questions on Underwriting, Loan Closing, etc.; E-Mail: roanoke.lp@vba.va.gov
Need to Contact Another Regional Loan Center (RLC),
Check
here for a List of RLCs.
Contact:
Loan Production
Roanoke Regional
Loan Center
Dept of Veterans Affairs Regional Office
210 Franklin Road, SW
Roanoke, VA 24011
DON DENNEHY
Loan Guaranty Officer
JEANE BLEVINS
Loan Production Officer
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