DOEBLER REALTY, INC.

What Is A VA Loan?

The Veterans Administration (VA) does not make loans. VA guarantees that the lender will be protected against loss in the event of a foreclosure up to a maximum of 25% of the loan amount. A funding fee is paid by the veteran to the Veterans Administration for each loan. VA will guarantee a loan for any eligible veteran to purchase a home provided his income will permit him to make the mortgage payments, his credit history is acceptable and he has enough cash to close the loan without borrowing.

Advantages Of VA Loans

No down payment required if the purchase price of the property does not exceed the VA appraisal.
The seller may pay any or all of the veteran's costs.
Less stringent loan underwriting requirements versus other types of loans.
Fully assumable (with qualifying).
No prepayment penalty.

Eligibility Requirements

To be eligible for a VA loan, the veteran must have served in the Armed Forces of the United States of America for a specified amount of time. The length of service required varies based upon the period of time he or she has served. The veteran should have also been discharged under conditions other than dishonorable.

Sept. 16, 1940 to July 25, 1947 - 90 days
July 25, 1947 to June 27, 1950 - 181 days
June 27, 1950 to Jan. 31, 1955 - 90 days
Jan. 31, 1955 to August 5, 1964 - 181 days
August 5, 1964 to May 7, 1975 - 90 days
May 7, 1975 to Sept. 7, 1980 - 181 days
Sept. 7, 1980 to Present - Two years
Currently in service - 181 days

Also eligible are unmarried widows of qualifying veterans whose deaths were service related. There are some exceptions to this schedule. Please contact us to help us make a determination of eligibility.

VA Loan Programs And Amounts

The maximum VA loan amount is currently set at $203,000.

The three programs available are the 30-year fixed/level payment where the monthly principle and interest payment remains the same for the life of the loan, the one-year

ARM (Adjustable Rate Mortgage) which can fluctuate based on the index (1-year Treasury Bill) and has a 1% annual cap and a 5% lifetime cap, and the

GPM (Graduated Payment Mortgage) which allows the borrower to qualify at a lower rate but requires a downpayment and has negative amortization.

VA Appraisals

All VA appraisals are done by VA assigned/approved appraisers. A Certificate of Reasonable Value (CRV) is then issued, setting forth VA's estimate of value.

Eligibility Restoration Criteria

The assumption of a VA loan leaves the veteran with limited eligibility until the loan is paid off in full as a result of a bonafide sale. Eligibility may then be completely restored and another property purchased using full entitlement.

Co-Mortgagors

If a veteran is legally married, VA will consider the spouse's income. If the veteran is to be married and the spouse's income is being used to qualify, VA will approve the loan with a marriage certificate as a condition for closing. All other co-mortgagors must meet the following requirements:

a. Both must be veterans.
b. Both will occupy the property.
c Both will use their entitlements.
d. Both must qualify for 1/2 of the payment.

Buyer's Costs

NO DOWN PAYMENT REQUIRED
Loan Origination Fee (1% of loan amount)
VA Funding Fee (varies and can be 100% financed)
Credit Report
Appraisal Fee
ALTA. Lenders Title Insurance Policy
Property Tax Proration and Reserves
Hazard Insurance and Reserves
Interest on new loan, based on closing date
Recording Fees

Seller's Costs

Sellers' and Buyers' Escrow Fees
Revenue Tax Stamps
Standard Owner's Title Insurance Policy
Sub-Escrow Fee
Pay Off Existing Trust Deed and Liens
Proration of Property Taxes
Payment of assessments, etc.
Structural Pest Control Inspection and Repairs
Other repairs or the cost of repairs
Broker fees
Association Transfer Fees
Buyers' Loan Processing Fee
Buyers' Loan Document Fee

And Don't Forget...

In a VA sale, the seller may pay any or all of the Veteran's costs listed above. This means that the veteran could buy with absolutely no money out of pocket. UNDER NO CIRCUMSTANCES CAN THE VETERAN PAY ANY OF THE SELLER'S COSTS. VA does not set interest rates, so VA rates reflect market conditions like any other type of loan. Discount points need not be charged to anyone, but the discount points to obtain a lower market interest rate can be paid by either the seller or the buyer.