VA-guaranteed loans are guaranteed by the federal government through the Veterans Benefits Administration, which is part of the Department of Veterans Affairs (VA).
The VA's main purpose in guaranteeing loans is to help meet the housing needs of eligible veterans who have served or are currently Erving on active duty in the U.S Armed Forces, which includes the Army, Navy, Air Force, Marine Corps, Coast Guard, Reserves, or National Guard.
VA loans are available to eligible veterans for the purchase of owner-occupied single-family homes and for multi-family dwellings up to four units if the veteran intends to occupy one of the units as the primary residence.
While our team will examine the borrower's credit history, amount of income, and other factors before approving the loan, the primary requirement to be approved for a VA loan is the borrower's military eligibility.
A current list of eligibility requirements is available on the VA website.
Our team won't issue, process or close a VA loan without verifying the eligibility of the borrower through a Certificate of Eligibility (COE) which is issued by the VA.
The Lender or Borrower may apply for a COE here.
The VA does not limit the price a veteran can pay for a house, as long as the house appraise for the loan amount, but does limit the amount it will guarantee in the event of default to 25% of the purchase price or the established reasonable value, whichever is less.
A veteran's maximum guaranty amount, known as entitlement, represents the portion of the loan that the VA guarantees in the event of default by the borrowing veteran, Therefore, veterans can generally purchase a home priced up to four time the amount of their entitlement with no down payment.
The veteran's current eligible entitlement will be documented in the Certificate of Eligibility (COE). If the veteran's entitlement is insufficient or if the purchase price/appraised value of the home exceeds the current VA loan limit for that county, a veteran can make a cash down payment so that the combination of entitlement and down payment equals the required guaranty of 25%.
Since VA mortgage loans can be fore the full reasonable value of the property, no down payment is generally required. However, under the following circumstances, a down payment is required:
One difference from conventional underwriting is that underwriters on VA loans do not generally consider the housing expense ratio, also called the front-end ratio. Instead underwriters start with the total debt-to income (DTI) ratio, or back-end ration. Generally looking for a total DTI that does not exceed 41%.
Residual income is the amount of income remaining after substracting taxes, housing expenses, and all recurring debts and obligations.
Residual income uses net effective income in its calculation, not gross income
Every appraisable made for VA purposes must be reviewed either by a SAR or by a VA staff appraiser, who issues a Notice of Value (NOV) or a Certificate of Reasonable Value (CRV).
The established reasonable value (or the sales price, whichever is less) defines the maximum mortgage amount a veteran may have on a VA-guaranteed loan for that property..
The law requires a veteran obtaining a VA-guaranteed loan to certify the intent to personally occupy the property as their home.
As of the date of certification, the veteran must either:
At NVWM, LLC, we are committed to helping veterans, service-members, and eligible surviving spouses achieve their dream of homeownership through VA loans. Please reach us at relation@nvwm.llc if you cannot find an answer to your question.
A VA loan is a mortgage option provided by private lenders and guaranteed by the U.S. Department of Veterans Affairs (VA). It is designed to help veterans, active-duty servicemembers, and eligible surviving spouses buy, build, or improve a home with favorable terms, such as no down payment and no private mortgage insurance (PMI).
With a VA-backed loan, the VA guarantees a portion of the loan, reducing the risk for lenders. This allows them to offer loans with no down payment, competitive interest rates, and limited closing costs. The VA does not lend money directly but instead backs loans issued by private lenders.
To be eligible, you must be a veteran, active-duty servicemember, or an eligible surviving spouse with a valid Certificate of Eligibility (COE). The length and type of your service, along with your duty status, determine your eligibility.
A COE is a document that proves your eligibility for a VA loan. You can obtain a COE through your lender, the VA’s eBenefits portal, or by mailing in a completed VA Form 26-1880. Your lender can often obtain your COE quickly through an online system.
VA loans offer several benefits, including:
Yes, the VA loan benefit is not a one-time offer. You can use it multiple times throughout your life, as long as you have enough entitlement remaining to back the loan.
A VA purchase loan helps eligible borrowers buy a home at a competitive interest rate, often without requiring a down payment or PMI. It can be used to buy an existing home, build a new one, or make certain home improvements.
A VA cash-out refinance loan allows you to refinance your existing mortgage and take cash out of your home’s equity. This can be used to pay off debt, fund education, or cover other expenses. It’s available to both VA and non-VA loan holders.
Also known as a VA streamline refinance, the IRRRL allows you to refinance your existing VA loan to reduce your interest rate or switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. This process requires less documentation and may not require an appraisal.
The NADL program is for eligible Native American veterans or veterans married to Native Americans. It allows them to buy, build, or improve a home on federal trust land with favorable loan terms directly from the VA, rather than through a private lender.
In most cases, no down payment is required for a VA loan. However, lenders may require a down payment for certain borrowers, such as those with lower credit scores or when purchasing high-cost properties.
Yes, there are closing costs with a VA loan, but they are typically lower than with conventional loans. The VA limits the types of closing costs that veterans can be charged, and the seller can contribute to covering these costs.
The VA funding fee is a one-time payment required by the VA to help cover the costs of the loan program. It can be rolled into the loan amount or paid upfront. The fee varies based on your loan type, down payment amount, and whether it’s your first VA loan.
VA loans often offer lower interest rates than conventional loans due to the VA’s guarantee, which reduces the lender’s risk. Rates can vary based on your credit score, loan term, and market conditions.
No, VA loans are intended for primary residences only. You must certify that you will occupy the home as your primary residence. However, if you refinance your VA loan, you may be able to keep the original property as a rental and use a new VA loan to purchase another primary residence.
While the VA does not set a minimum credit score, most lenders require a score of at least 620. However, NVWM, LLC works with borrowers with varying credit profiles, so it’s possible to qualify with a lower score depending on other factors.
Yes, VA loans can be used to finance the construction of a new home. This process may involve a construction-to-permanent loan, where the loan initially funds the construction and then converts into a permanent mortgage once the home is completed.
If you default on a VA loan, the VA may step in to help avoid foreclosure through its foreclosure avoidance assistance programs. If foreclosure occurs, the VA covers a portion of the lender’s losses, but this can impact your credit and eligibility for future VA loans.
The property must meet the VA’s minimum property requirements (MPRs) to ensure it is safe, structurally sound, and sanitary. An appraisal by a VA-approved appraiser will assess the property’s value and condition.
Yes, you can still qualify for a VA loan after a bankruptcy or foreclosure, but typically not until a certain period has passed. Generally, two years must pass after a Chapter 7 bankruptcy discharge or a foreclosure, and one year after a Chapter 13 filing.
To apply, start by obtaining your COE. Then, contact NVWM, LLC to begin the loan process. We’ll guide you through pre-approval, home search, appraisal, underwriting, and closing.
To apply, start by obtaining your COE. Then, contact NVWM, LLC to begin the loan process. We’ll guide you through pre-approval, home search, appraisal, underwriting, and closing.
VA loans are guaranteed by the VA, offer no down payment, and don’t require PMI, while conventional loans typically require a down payment and PMI if you borrow more than 80% of the home’s value. VA loans also offer more flexibility with credit and income requirements.
Yes, you can refinance your VA loan into a conventional loan, especially if you want to eliminate the VA funding fee or avoid paying mortgage insurance when you have significant equity in your home.
The closing process for a VA loan typically takes 7 to 45 days, similar to other mortgage types. However, the timeline can vary depending on factors such as the complexity of your financial situation and the speed of the appraisal. NVWM,LLC closes in record time.
Please reach us at relation@nvwm.llc if you cannot find an answer to your question.
The VA loan entitlement is the amount the VA will guarantee on your behalf, which allows lenders to offer you a loan with favorable terms. There are two types: basic and bonus (or tier 2) entitlement. These entitlements help determine the maximum loan amount you can borrow without needing a down payment.
Yes, your VA loan entitlement can be fully restored after selling your home and paying off the VA loan in full. You can then use your restored entitlement to purchase another home with a VA loan.
NVWM, LLC has been Voted Number One Best VA Facilitator in Texas and Florida for 2024-2025. We offer expert guidance, competitive rates, and personalized service tailored to the unique needs of veterans and their families. Whether you’re in Austin, TX (78746) or Naples, FL (34102), we’re here to help you navigate the VA loan process with ease all over Florida and Texas.
Certain veterans are exempt from paying the VA funding fee, including those receiving VA disability compensation, Purple Heart recipients on active duty, and surviving spouses of veterans who died in service or from a service-connected disability.
Yes, VA loans can be used to purchase multi-family properties (up to four units), as long as you intend to occupy one of the units as your primary residence. The rental income from the other units can be used to help qualify for the loan.
As of 2020, VA loan limits were eliminated for veterans with full entitlement. This means you can borrow as much as your lender will allow without a down payment, provided you have full entitlement. However, if you have remaining entitlement, loan limits may apply based on the county.
Your VA loan entitlement is based on the conforming loan limits set by the Federal Housing Finance Agency (FHFA). If you’ve used your entitlement before, the remaining entitlement will be calculated based on the portion of the loan limit that was not used.
VA loans typically offer better terms than FHA loans, including no down payment, no PMI, and generally lower interest rates. VA loans are also available to those with more flexible credit and income requirements compared to FHA loans.
Yes, you can refinance a conventional mortgage into a VA loan if you are eligible for VA benefits. This is known as a VA cash-out refinance, which can help you tap into your home’s equity while potentially securing better loan terms.
To get pre-approved, contact NVWM, LLC and provide necessary documentation, including your COE, income verification, credit history, and any other financial information. Pre-approval helps you understand how much you can borrow and makes your home buying process smoother.
Yes, VA loans can be used to purchase a condominium, but the condo must be in a VA-approved project. You can check the VA’s list of approved condos online or ask NVWM, LLC to assist with the verification process.
Yes, you can use a VA loan for home improvements in several ways. The VA cash-out refinance allows you to borrow against your home’s equity to finance improvements. Additionally, the VA’s Energy-Efficient Mortgage (EEM) program helps fund energy-efficient upgrades.
VA loans do not have a specific income requirement, but your income must be sufficient to cover the mortgage payments, taxes, insurance, and other obligations. Lenders will assess your debt-to-income ratio (DTI) to determine if you qualify.
No, VA loans are intended for primary residences only. However, if you move to a new primary residence, you can use a VA loan to purchase the new home and potentially convert your previous home to a rental property.
The VA requires an appraisal by a VA-approved appraiser to determine the property’s value. The appraisal ensures that the home meets the VA’s minimum property requirements and that the loan amount does not exceed the property’s market value.
The VA requires borrowers to have a certain amount of residual income, which is the money left over after all major expenses are paid. This ensures that veterans have enough income to cover living expenses after their mortgage payment. The requirement varies by region and family size.
Only the veteran or service member can use VA loan benefits. However, an eligible surviving spouse may use the VA loan benefit, and the spouse’s income can be included in the loan application to help qualify for the loan.
Yes, disabled veterans may qualify for additional benefits, such as exemption from the VA funding fee and eligibility for Adapted Housing Grants, which can help fund modifications to accommodate a service-connected disability.
Yes, it is possible to have more than one VA loan at a time if you have remaining entitlement. This can occur if you still own a home financed with a VA loan and need to purchase another primary residence.
A VA loan assumption allows a qualified buyer to take over your existing VA loan, including its terms and interest rate. The buyer must meet VA and lender requirements to assume the loan, and the original borrower may be released from liability if the assumption is approved.
Yes, VA loans can be used to finance the construction of a new home. This typically requires a construction-to-permanent loan, which allows you to convert the construction loan into a permanent mortgage once the home is complete.
When you sell your home, the VA loan is usually paid off with the sale proceeds. Your VA entitlement can be restored once the loan is paid in full, allowing you to use it for future home purchases.
Yes, the VA cash-out refinance allows you to refinance your existing VA loan and take cash out of your home’s equity. This option is available even if your current mortgage is not a VA loan, provided you meet eligibility requirements.
No, VA loans are exclusively available to veterans, active-duty servicemembers, and eligible surviving spouses. However, non-veterans can assume a VA loan if the lender and the VA approve the assumption.
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