How to Get a VA Loan

VA Home LoanGuaranteed by the U.S Department of Veteran Affairs, a VA loan is intended for American veterans and unmarried spouses of deceased veterans. A VA loan may be obtained for buying a home, condominium or townhouse unit that is under a project approved by the VA, for building a home, for simultaneously purchasing and improving a home, or for refinancing a home.

VA Appraisals

The certificate of reasonable value (CRV) depends on an evaluator’s estimate of a property’s value that is going to be bought. The mortgage amount might not be more than the CRV, which means that an appraisal will have to be requested to avail a VA loan. On completion of VA Form 26-1805, anyone (seller, buyer, lender or real estate agent) can request an appraisal. The completed form can be sent by mail to the nearest VA office’s Loan Guaranty Division for processing, or you may also request for an appraisal by requesting for an appraiser from the Loan Guaranty Division via telephone. You can contact the VA office for information regarding their assignment procedures. Depending on the VAss approved fee schedule, a bill will be sent by the appraiser to the requester, for their services.

The Federal Housing Administration/Department of Housing and Urban Development (FHA/HUD) and VA use similar appraisal forms to make things simpler. Moreover, if the appraisal of the property was done recently under the HUD guidelines, under a few limited circumstances, the conditional commitment may be converted into a VA CRV. Explanation on how this is done can be obtained from the VA office. It is very important to realize that although the VA appraisal may estimate the property’s value, it doesn’t guarantee the house from being defect free as it’s not an inspection. The property must be inspected carefully by the homebuyers themselves. A well-known inspection may also be hired to help inspect the property. VA only guarantees the mortgage, not the property’s condition.

VA Loan Application

The VA application process for financing is the same as that for any other kind of loan. As a matter of fact, the application form used by VA is similar to the one used for conventional loans and HUD/FHA. The lender of the mortgage verifies the assets and income of the applicant, thus obtaining a credit report to check that the applicant meets his/her other obligations on time. If the lender is satisfied with the credit worthiness of the applicant, and the appraised property value can cover the mortgage applied for, the lender usually closes the loan under the automatic procedure of VA. Only about 10/5 of the loan applications must be forwarded for approval to a VA office before closing.

Requisites for Loan Approval

The law requires the following if you want to get a VA loan:

  • The applicant should be veteran who is eligible with available entitlement.
  • The purpose of the loan must be considered eligible.
  • After the closing of the loan, the property must be occupied, or intended to be occupied by the veteran.
  • The veteran should have eligible credit worthiness.
  • Mortgage payments must be met by the incomes of the veteran and his spouse, if any. The income must be sufficient and stable to cover the amount of money required to own a home, meet other expenses and obligations, and also for family support.
  • The qualifying requirements and specific income can be discussed with an experienced lender of mortgages.  

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