VA Loan Store » Getting Started / Qualifying

VA Loan Limits For 2010

themightyquin — Tue, 06 Apr 2010 17:24:21 +0000

Many inexperienced loan officers will tell you that the maximum VA Loan limit is $417,000 across the country. This is simply not the case. The VA works like any other government entity and makes concessions based on the reported cost of living and housing expenses for any given area.

The attached document is the complete 2010 VA Loan limit guidelines. To find your VA loan limit search by STATE first and then COUNTY. If your county is listed the maximum VA loan limit will be posted.

IF your county is NOT listed then your maximum VA Loan limit for 2010 is $417K

2010 va loan limits

The Ultimate Guide To Understanding Your Good Faith Estimate

themightyquin — Mon, 07 Dec 2009 04:11:48 +0000

This video was made and designed to work with the article “Rate Shopping for a VA loan.”

If your serious about getting a great loan then you need to understand two things: first, how to shop for a loan. Second, how to read a good faith estimate. And lucky for you, everything you need to be successful is posted in this article.

Now that we have that out of the way…. Go ahead and push play for this video and hit the crossed arrows to enlarge to full screen. Doing so will allow you to see all the details of this form.

Once you have completed this video, your next step is reading this article that I wrote entitled “Rate shopping for a VA loan.”

Lastly, stop slacking and hurry up and apply for a VA Loan. Act now and fill out the orange form marked “Get Pre-Qualified Here.”

That’s it…… your bulletproof.

VA County Loan Limits

themightyquin — Fri, 30 Oct 2009 18:34:49 +0000

VA Loan Limits Nationwide

If your wondering what the VA loan limits are for your county we took the liberty of posting the complete list here.

P.S. Some conservative banks will not honor these posted VA loan limits. They prefer to lend using their own guidelines which every bank is free to do. Take these figures with a grain of salt and double check with your bank before proceeding.

VA Loan Limits

Eligibility Frequently Asked Question

themightyquin — Wed, 23 Sep 2009 17:21:54 +0000

Questions about who is eligible for a VA loan and reuse of eligibility for another VA loan.

Q: How do I apply for a VA guaranteed loan?

A: You can apply for a VA loan with any mortgage lender that participates in the VA home loan program. At some point, you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.

Q: How do I get a Certificate of Eligibility?

A: Complete a VA Form 26-1880, Request for a Certificate of Eligibility: You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request For A Certificate of Eligibility For Home Loan Benefits along with proof of military service. In some cases it may be possible for VA to establish eligibility without your proof of service. However, to avoid any possible delays, it’s best to provide such evidence.

Q: What is acceptable proof of military service?

A: If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which identifies you and your social security number, and provides your date of entry on your current active duty period and the duration of any time lost.

If you were discharged from regular active duty after January 1, 1950, a copy of DD Form 214, Certificate of Release or Discharge From Active Duty should be included with your VA Form 26-1880. If you were discharged after October 1, 1979, DD Form 214 copy 4 should be included. A PHOTOCOPY OF DD214 WILL SUFFICE…..DO NOT SUBMIT AN ORIGINAL DOCUMENT.

If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which shows your date of entry on your current active duty period and the duration of any time lost.

If you were discharged from the Selected Reserves or the National Guard, you must include copies of adequate documentation of at least 6 years of honorable service. If you were discharged from the Army or Air Force National Guard, you may submit NGB Form 22, Report of Separation and Record of Service, or NGB Form 23, Retirement Points Accounting, or it’s equivalent. If you were discharged from the Selected Reserve, you may submit a copy of your latest annual points statement and evidence of honorable service. Unfortunately, there is no single form used by the Reserves or National Guard similar to the DD Form 214. It is your responsibility to furnish adequate documentation of at least 6 years of honorable service.

If you are still serving in the Selected Reserves or the National Guard, you must include an original statement of service signed by, or by the direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters showing the length of time that you have been a member of the Selected Reserves. Again, at least 6 years of honorable service must be documented.

Q: How can I obtain proof of military service?

A: Standard Form 180, Request Pertaining to Military Records, is used to apply for proof of military service regardless of whether you served on regular active duty or in the selected reserves. This request form is NOT processed by VA. Rather, Standard Form 180 is completed and mailed to the appropriate custodian of military service records. Instructions are provided on the reverse of the form to assist in determining the correct forwarding address.

Q: I have already obtained one VA loan. Can I get another one?

A: Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property. In either case, to obtain restoration of eligibility, the veteran must send VA a completed VA Form 26-1880 to us for submission. To prevent delays in processing, it is also advisable to include evidence that the prior loan has been paid in full and, if applicable, the property disposed of. This evidence can be in the form of a paid-in-full statement from the former lender, or a copy of the HUD-1 settlement statement completed in connection with a sale of the property or refinance of the prior loan.

Q: I sold the property I obtained with my prior VA loan on an assumption. Can I get my eligibility restored to use for a new loan?

A: In this case the veteran’s eligibility can be restored only if the qualified assumer is also an eligible veteran who is willing to substitute his or her available eligibility for that of the original veteran. Otherwise, the original veteran cannot have eligibility restored until the assumer has paid off the VA loan.

Q: My prior VA loan was assumed, the assumer defaulted on the loan, and VA paid a claim to the lender. VA said it wasn’t my fault and waived the debt. Now I need a new VA loan but I am told that my used eligibility can not be restored. Why?

Or,

Q: My prior loan was foreclosed on, or I gave a deed in lieu of foreclosure, or the VA paid a compromise (partial) claim. Although I was released from liability on the loan and/or the debt was waived, I am told that I cannot have my used eligibility restored. Why?

A: In either case, although the veteran’s debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran’s eligibility to be restored until the loss has been repaid in full.

Q: Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don’t own the property anymore. Can I still obtain a VA guaranteed home loan?

A: Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required.

Q: Are the children of a living or deceased veteran eligible for the home loan benefit?

A: No, the children of an eligible veteran are not eligible for the home loan benefit.

Our VA Loan Guarantee

themightyquin — Wed, 23 Sep 2009 16:53:04 +0000

Your satisfaction is of the utmost importance to us at the VA Loan Store so we offer this unprecedented money back guarantee.

We stand behind our service, rates, and pricing so you can sleep well knowing you have made the most intelligent mortgage decision.

We Will:
• Take full responsibility for our actions and be honest at all times

• Ask questions and listen to you in order to fully understand your needs

• Create mortgage solutions that complement your overall financial strategy, and allow you to most effectively accomplish your short and long term financial goals

• Determine a fair rate for your given loan program and credit situation AND give you the option to lock in that interest rate or “float” it. If you choose to lock your interest rate, we will GUARANTEE that rate at closing unless your credit situation changes during the application. This includes, but is not limited to, undisclosed poor credit, change of program, denial by the lender through which we locked the loan, or delay in your loan closing due to factors beyond our control. If you elect to float your loan, the choice of when to lock the interest rate is yours. As part of our loan process, you will receive regular market updates designed to assist in choosing the perfect time to lock your interest rate.

• Prepare a Good Faith Estimate and GUARANTEE that your actual costs- excluding title company/closing attorney costs- will be within 5% of our proposal or WE will pay the difference. This applies to actual costs only and does not include escrows and prepaid items. The industry standard is between 10% and 25% variance, so you can see that we truly do stand behind what we quote you.

• Respect your time and minimize the amount of effort required of you by applying our knowledge, experience, and resourcefulness

• Explain the entire mortgage process so you can anticipate what to expect all the way through closing.

• Provide weekly loan status updates and proactively communicate to reduce the stress associated with uncertainty. We will provide the opportunity to have all your questions answered with your personal mortgage planner.

• Ensure smooth, on-time closings with anticipated costs and terms so you feel comfortable and relaxed.

• Perform annual mortgage reviews to make certain your financial objectives are realized.

No one else in the industry stands behind their products like this and we are proud to add you to the growing list of happy, satisfied customers.

We ask only one thing of you. Referrals are the lifeline of our business and, therefore we request that you refer at least 2 people to us during your time in process with us. They will receive the same exceptional service and, of course, the same guarantee!

From everyone on our team, we thank you for your patronage and look forward to serving you.

Quin Linich

Veteran and Founder

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VA Mortgage Eligibility Rules

themightyquin — Wed, 23 Sep 2009 14:47:48 +0000

General Rules for Eligibility

Military Service Requirements for VA Loan Eligibility:

Note: Applications involving other than honorable discharges will usually require further development by VA. This is necessary to determine if the service was under other than dishonorable conditions.

Wartime – Service During:

WWII: 9/16/1940 to 7/25/1947

Korean: 6/27/1950 to 1/31/1955

Vietnam: 8/5/1964 to 5/7/1975

You must have at least 90 days on active duty and been discharged under other than dishonorable conditions. If you served less than 90 days, you may be eligible if discharged for a service connected disability.

Peacetime – Service during periods:

7/26/1947 to 6/26/1950

2/1/1955 to 8/4/1964

5/8/1975 to 9/7/1980(Enlisted)

5/8/1975 to 10/16/1981 (Officer)

You must have served at least 181 days of continuous active duty and been discharged under other than dishonorable conditions. If you served less than 181 days, you may be eligible if discharged for a service connected disability.

Service after 9/7/1980 (enlisted) or 10/16/1981 (officer)

If you were separated from service which began after these dates, you must have:

Completed 24 months of continuous active duty or the full period (at least 181 days) for which you were ordered or called to active duty and been discharged under conditions other than dishonorable, or Completed at least 181 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1171 (Early Out), or have been determined to have a compensable service-connected disability; Been discharged with less than 181 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances for the convenience of the Government.

Gulf War – Service during period 8/2/1990 to date yet to be determined

If you served on active duty during the Gulf War, you must have:

Completed 24 months of continuous active duty or the full period (at least 90 days) for which you were called or ordered to active duty, and been discharged under conditions other than dishonorable, or

Completed at least 90 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1173 (Early Out), or have been determined to have a compensable service-connected disability, or

Been discharged with less than 90 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances, for the convenience of the Government.

Active Duty Service Personnel

If you are now on regular duty (not active duty for training), you are eligible after having served 181 days (90 days during the Gulf War) unless discharged or separated from a previous qualifying period of active duty service.

Selected Reserves or National Guard

If you are not otherwise eligible and you have completed a total of 6 years in the Selected Reserves or National Guard (member of an active unit, attended required weekend drills and 2-week active duty for training) and

Were discharged with an honorable discharge, or

Were placed on the retired list, or

Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable service, or

Continue to serve in the Selected Reserves

Individuals who completed less than 6 years may be eligible if discharged for a service-connected disability.

You May also be determined eligible if you:

Are an unremarried spouse of a veteran who died while in service or from a service connected disability, or

Are a spouse of a serviceperson missing in action or a prisoner of war

Note: Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must apply no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 6, 2003 that are received after December 15, 2004.

Eligibility may also be established for:

Certain United States citizens who served in the armed forces of a government allied with the United States in WW II.

Individuals with service as members in certain organizations, such as Public Health Service officers, cadets at the United States Military, Air Force, or Coast Guard Academy, midshipmen at the United States Naval Academy, officers of National Oceanic & Atmospheric Administration, merchant seaman with WW II service, and others.

Loan Officer or Realtor: Who Do You Get First?

Vikki P. — Wed, 19 Aug 2009 22:19:30 +0000

This sounds like a chicken or egg question but should you get a loan officer or a real estate agent first? Let’s break it down to help you decide:

Realtor first! Believe it or not, real estate agents would want you to start with them. A realtor would help you get to the right track and would want to influence you when it comes to choosing affiliates or other team players that involved in the house-buying process. By saying team players, that includes loan officers. This typically happens when the realtor finds out that you don’t have a lender yet.

Loan officer first! Get a loan officer first if you haven’t been preapproved for a VA loan. Why? Well, for one, it’s better to know your budget first before you go shopping. Don’t fret if your loan officer asks if you already have a realtor. Having a realtor before your VA loan application process begins is not a requirement. The loan officer asks you this question to help you. If the loan officer finds out that you don’t have a realtor yet, he’ll most likely give you a list of realtors he has done business with and even provide you a qualification letter that you can show to the realtors.

So what is the best thing to do? To be honest, it doesn’t matter because the two will lead you to the other anyway. Some people might disagree. But the point is, you’ll end up finding a lender and a realtor since at the end of the day, you will need them both. What is important is that you understand that aside from these two, there are other people involved in this process. Here’s a quick list of other team players according to David Reed, a veteran of the mortgage industry:

Loan Processor – The one who verifies, compiles, and reviews your loan application. The loan processor also calls the credit bureau and employer to verify your information.
Appraiser – The person who estimates the worth or value of a property and creates the document called Notice of Value.
Inspector – The expert who performs structural and pest inspections – plumbing, electrical work, roof, structural stability, etc.
Insurance Agent – The person who is authorized to sell and transact insurance.
Title Agent – The guy who makes sure that it’s you and only you can claim property to the home you are buying.
Attorney – Not all states require that you have an attorney when purchasing a home but some do!
Surveyor – The surveyor measures the house’s dimensions – including permanent structures, boundary lines and easements.
Underwriter – This team player analyzes the risks involved in your VA loan application and then establishes terms and conditions depending on the risks.
Escrow Agent or Closer – The closer makes sure that all your papers are signed and the sale took place.
Funder – The guy who generate wires for loans to fund.

But the most important person in this process is YOU! Never let any members of the team push you around into deciding into something that you do not want or understand.

Your VA Loan – Getting Started

themightyquin — Wed, 19 Aug 2009 17:46:44 +0000

Ever wondered about what it takes to be a VA Loan candidate? Watch this video and wonder no more!

How to time your VA loan financing.

To Pay or Not to Pay? The VA Loan Funding Fee

Vikki P. — Mon, 27 Jul 2009 20:19:27 +0000

For guaranteed loans, the law requires the borrower to pay the VA Loan Funding Fee. A veteran will be asked to pay this upfront during the final stage of the loan application process. Though VA home loans provide veterans a no-money-down benefit, a veteran is asked to pay the VA Funding Fee as a contribution toward the cost of this unique benefit. As a result, the VA Funding Fee reduces the cost to taxpayers.

For first time veteran borrowers, the fee is currently at 2.15% while second-time users who don’t want to make a down payment are asked to pay 3.3%. Why are second-timers asked to pay more? It’s pretty simple, these veterans have already taken advantage of the benefit in the past plus they have also had the time to save money to pay for a down payment.

Another important aspect of the VA Funding Fee that every veteran must know is that it can vary depending on the type of service rendered and whether the loan is a purchase, a streamline refinance or IRRL, or simply a cash-out transaction. The following charts show the details of the VA Funding Fee.

Type of Veteran	Down Payment	First Time Use	Subsequent Use for loans 1/1/04 to 9/30/11
Regular Military	None 5% – 10% 10% or more	2.15% 1.50% 1.25%	3.3%* 1.50% 1.25%
Reserve/National Guard	None 5% – 10% 10% or more	2.4% 1.75% 1.5%	3.3%* 1.75% 1.50%

Cash-Out Refinancing Loans

Type of Veteran	Percentage for First Time Use	Percentage for Subsequent Use
Regular Military	2.15%	3.3%*
Reserve/National Guard	2.4%	3.3%*

* The higher subsequent use fee does not apply to these types of loans if the veteran’s only prior use of entitlement was for a manufactured home loan.

Type of Loan	Percentage for Either Type of Veteran Whether First Time or Subsequent Use
Interest Rate Reduction Refinancing Loans (IRRRL)	0.50%
Manufactured Home Loans	1.00%
Loan Assumptions	0.50%

Although almost all veteran home buyers pay the VA Loan Funding Fee, there are some exceptions to this:

Veterans with service-related disabilities who are receiving VA compensation
Veterans with service-related disabilities who did not receive retirement pay but are entitled to receive compensation
Surviving spouses of veterans who died while rendering service or from any service-related disabilities

Understanding YOUR VA entitlement numbers

Toni — Mon, 08 Jun 2009 20:27:11 +0000

Understanding your entitlement benefit is tricky business. The government likes to complicate matters and many veterans get fooled when they finally see their entitlement figures. In this article, we will uncover the mystery behind the VA entitlement numbers.

What is VA entitlement?

VA Entitlement in the VA home loan process is the guaranteed amount that the Department of Veterans Affairs will pay to the lender should the borrower go into default on the loan. The entitlement is nothing more than a form of insurance for the bank.

Who is eligible?

Active duty service persons are eligible for a VA Entitlement, unless they are inactive status. If inactive status, you need to submit a Form 26-1880 to your local VA office in order to determine eligibility based on time served, discharge status and other criteria.

Where do I find my entitlement benefits?

The amount of VA Entitlement will be on the Certificate of Eligibility, and this form must be obtained in order determine eligibility status for a VA home loan.

What are the entitlement figures?

Basic entitlement – Is $36,000 and is for loans up to $144,000.
Bonus entitlement- Is $68,250 and is for loans exceeding $144,000

Does your certificate of eligibility show $36,000?

For some unknown reason, the government does not differentiate between basic entitlement and bonus entitlement and makes things confusing by showing $36,000 as the maximum vested amount. Don’t be alarmed, if your COE shows $36,000 you have all the maximum VA benefits available.

VA entitlements stay with the loan even if you don’t.

VA entitlements do not expire until the loan is paid in full; even if the VA loan has been transferred to another individual.

Re-using your VA benefit of entitlement:

If VA home loan is transferred, you cannot get another loan or restore the entitlement until the original loan is paid off.
Cannot re-use entitlement if VA home loan has been foreclosed on.

VA Entitlement can be restored under these conditions:

The veteran has paid off the original VA home loan and sold the property.

“One-time” allowance of restoring entitlement, if original VA loan used to purchase the property is paid and veteran still owns the property.

If VA home loan has been transferred, the qualified veteran (buyer) agrees to assume the loan and substitute their entitlement for the same amount of entitlement originally used by the veteran who sold them the property.

To order your certificate of elgibility click here.