VA Home Loan Requirements
Military veterans and armed forces service members can use a VA loan to buy a home with no down payment. The Department of Veterans Affairs recently increased the Maximum VA Loan Guarantee Amount for veteran home loans.
VA Loan Occupancy Requirements
A home loan backed by the Department of Veterans Affairs must be an owner occupied residence and cannot be investment or commercial property. It must be intended to be the primary residence of the service member or military veteran. Second homes are not eligible for a VA home loan under the stated requirement provided by the Department of Veterans Affairs loan program.
Additional VA Home Loan Requirements
A veteran or service member may upon death transfer the property to a husband/wife or
spouse provided that the property is being used a a primary residence by the spouse. Family members are not generally authorized to us the VA home loan guarantee as it must be initiated by the veteran or service member.
VA Home Loans for Duplex, Triplex, or Four-Plex?
The VA not only allows single family owner occupied homes but duplexes are also allowed,
and in most cases a veteran can purchase a tri-plex or four-plex with a VA loan provided that the property is owner occupied and all other financing and eligibility requirements meet loan approval. All requirements should be checked on the official Department of
Veterans Affairs website before deciding if a VA Home Loan is right for you.
VA Home Loan Eligibility
In order to qualify for VA Home Loan Eligibilty, the Veterans Administration generally requires that a service member or veteran of the US Armed Forces must have served on Active Duty for six months (or the equivalent for Military Reserve and National Guard personnel). Military Veterans who have been issued a DD Form 214, the Certificate of Release or Discharge from Active Duty qualify for applying to obtain a VA home loan. Follow on criteria include being able to meet all underwriting, appraisal, and inspection requirements.
VA Loan Appraisal
One of the biggest hurdles in any real estate investment, which keeps all parties involved on their toes is waiting to see whether the home will appraise for what the agreed upon price is based on the signed purchase contract. A VA Home Loan Appraisal will be provided to underwriting and will be provided to all parties involved: buyer, seller, agent & broker, and of course the lender. If the VA home loan purchase appraises
VA Home Loan Inspection
The VA mortgage loan inspection process is one of the more complex home inspections in real estate and certain requirements (or deficiencies) must be met prior to purchase. The buyer or seller may be required to pay for the inspection, special VA home loan inspections like a roof, flood zone, or termite report, and the seller may be required to pay certain costs associated with a VA home loan inspection or repair.
VA Home Loan Repairs – Who pays? Buyer or Seller
While the Veterans Administration may be able to guarantee a loan in the event of a buyer/homeowner default, the VA cannot guarantee the home will be free of existing defects. Depending on the type and nature of any necessary repairs discovered during the VA inspection process, the seller may be required to pay for most of the repairs related to building structure or termites found in a termite inspection. Additionally, if the home is new construction there is little that the VA Home Loan Guaranty will be able to do to force the builder to correct any deficiencies other than suspending the new home construction builder from participation in the VA home loan program.