when going for a va home load do you need an attorney

Do I need a VA loan approval to buy a home?

You’ll need to use a Specific POA if the buyer is unable to meet the requirements for a General POA. Specific POA is also known as limited Power of Attorney. It’s limited because the agent is only allowed to execute on a very specific issue, like, say, a VA home loan for one particular property address. Lenders may have their own guidelines.

Can I use a power of attorney for a VA loan?

Using a VA Loan with Power of Attorney. ... if you’re getting close to buying a home and need a real estate specific POA, contact your VA lender in advance and let …

Do you provide financial counseling for veterans with VA loans?

Deed in lieu of foreclosure: This plan lets you avoid the foreclosure process by signing over the deed to the home to your servicer. The home will then belong to the servicer. Note: This option could result in a loss or reduction in your future home loan benefit. Contact a VA loan technician at 877-827-3702 for more details.

What happens to my VA loan if I Sell my House?

Dec 21, 2021 · If you have remaining entitlement for your VA-backed home loan, find out the current loan limits and how they may affect the amount of money you can borrow without a down payment. As of 2020, if you have full entitlement, you don’t have a VA loan limit.

Is it hard to get approved for a VA home loan?

If you're eligible, VA loans are fairly easy to qualify for, since there's no down payment required, no minimum credit scores, and no maximum limit on how much you can borrow relative to income.Oct 29, 2021

Why you shouldn't get a VA loan?

The lower interest rates on VA loans are deceptive. While interest rates for 30-year VA loans are usually equal to or slightly lower than 30-year conventional loans, neither loan is a good option. Both will end up costing you much more in interest over the life of the loan than their 15-year counterparts.Nov 23, 2021

What do lenders need for a VA loan?

VA Loan Checklist Summary Past two years of tax returns. Most recent bank statements from checking, savings and retirement accounts. Most recent pay stubs. VA disability awards letter (if applicable)Mar 24, 2021

How long does the VA loan process take?

How Long Does it Take to Close a VA Loan? Most VA loans close in 40 to 50 days, which is standard for the mortgage industry regardless of the type of financing.Apr 17, 2017

Why do sellers dislike VA loans?

Why don't sellers like VA loans? Many sellers – and their real estate agents – don't like VA loans because they believe these mortgages make it harder to close or more expensive for the seller.Oct 11, 2021

What are the disadvantages of a VA loan?

What are some of the disadvantages of a VA loan?You will be required to pay VA funding fees. ... Consider the total cost of loan compared to total cost of house. ... Manufactured homes may require a minimum down payment and may not be eligible for a 30-year term.You cannot use a VA loan for rental properties.Nov 30, 2020

Is a dd214 required for a VA loan?

Getting a VA Loan often requires supplying a DD Form 214, Report of Discharge, which serves as official proof of military service and verifies the nature of the veteran's military discharge (Honorable, Dishonorable, etc.).

Are VA loans harder to close?

In short, VA mortgages will close at a high rate and are less likely than the average loan to fail to close.Feb 3, 2019

How many months of bank statements do I need for a VA loan?

Typically these include the following personal documents for all borrowers: W-2 Statements for the past two years from all employers. Most recent pay stubs or LES covering one full month. Most recent bank and asset statements covering two full months.

How long does it take to get VA home loan approved?

On average, you can get approved and close on a VA loan in 30 to 45 days. Again, this will vary by lender and even by borrower, though. Below are the factors that affect your approval time.Oct 5, 2018

What are the pros and cons of a VA loan?

VA loan benefits and drawbacksProsConsNo down payment requiredMust be eligible based on military serviceNo loan limitsTougher appraisal requirementsNo income restrictionsLonger wait in between refinancing than conventional loansNo mortgage insurance requiredVA funding fees up to 3.6% of the loan amount2 more rows•Dec 21, 2021

Can I get VA financial counseling to help avoid foreclosure?

If you’re a Veteran or the surviving spouse of a Veteran, we’ll provide financial counseling—even if your loan isn’t a VA direct or VA-backed loan...

What should I do if I’m having trouble paying my mortgage?

If you’re having difficulty making your mortgage payment, contact your loan servicer right away. This is your chance to find a solution that might...

How can I avoid foreclosure?

There are 6 general ways you can try to avoid a foreclosure.   Our VA loan technicians can help you figure out which option is best for you. Contac...

If I can’t avoid foreclosure, will I have to pay back my loan?

If your loan closed before January 1, 1990, and we have to pay back the amount of your loan to the servicer, you’ll need to pay this amount back t...

What if I need help or more information?

Talk to a housing counselor Read HUD’s homeowner’s guide to success (PDF) Read the Consumer Financial Protection Bureau’s advisory on how to spot a...

What is the VA loan number?

If you have any questions about your eligibility for a VA home loan, please call your VA regional loan center at 877-827-3702. We’re here Monday through Friday, 8:00 a.m. to 6:00 p.m. ET.

How long is the active duty period?

The full period (at least 90 days) for which you were called or ordered to active duty, or. At least 90 days if you were discharged for a hardship, a reduction in force, or for convenience of the government, or. Less than 90 days if you were discharged for a service-connected disability.

How long is a 24 month period?

At least 181 days if you were discharged for a hardship, a reduction in force, or for convenience of the government, or. Less than 181 days if you were discharged for a service-connected disability.

What is a power of attorney?

To help prepare for the unexpected, a power of attorney document allows veterans and service members to have another individual sign legal documents on their behalf while away. This can be from a deployment or in the process of a harried PCS.

Who can sign a POA?

A power of attorney document, or POA, is in fact a legal document authorizing one individual or even more than one to enter into legal agreements and sign legal papers on behalf of the veteran or service member. Most often it is the spouse that is granted a POA but it can be anyone the veteran trusts to make legal decisions without being present ...

What is a POA in real estate?

The specific POA limits the authorized signator to the individual transaction and clearly states the intentions of the absent borrower. That means should the loan fall out or the deal cancelled, a new POA will need to be drawn. Many times a real estate attorney or settlement agent will have their own real estate specific POA and provide ...

What is a specific POA?

A “specific” POA is one that is drawn up precisely for the subject real estate transaction. A POA for everything is not acceptable to a VA lender. In addition to legal wording specific to the state in which the property is located, the specific POA must:

Who is Chris Birk?

Chris Birk is executive editor of Veterans United Home Loans and author of The Book on VA Loans: An Essential Guide to Maximizing Your Home Loan Benefits. Nearly 330,000 people follow his VA Loans community on Facebook. You can also follow him on Google+. Show Full Article. Related Topics: VA Loan.

What is a US citizen?

citizen who served in the Armed Forces of a government allied with the United States in World War II, or. Served as a member in certain organizations, like a: Public Health Service officer. Cadet at the United States Military, Air Force, or Coast Guard Academy. Midshipman at the United States Naval Academy.

How long is the active duty period?

The full period (at least 90 days) for which you were called or ordered to active duty, or. At least 90 days if you were discharged for a hardship, a reduction in force, or for convenience of the government, or. Less than 90 days if you were discharged for a service-connected disability.

What is the VA loan number?

If you have any questions about your eligibility for a VA home loan, please call your VA regional loan center at 877-827-3702. We’re here Monday through Friday, 8:00 a.m. to 6:00 p.m. ET.

How long is a 24 month period?

At least 181 days if you were discharged for a hardship, a reduction in force, or for convenience of the government, or. Less than 181 days if you were discharged for a service-connected disability.

How to avoid foreclosure?

There are 6 general ways you can try to avoid a foreclosure: 1 Repayment plan: If you’ve missed a few mortgage payments, this plan lets you go back to making your regular payments, with an added amount each month to cover the ones you’ve missed. 2 Special forbearance: This plan gives you some extra time to repay the missed mortgage payments. 3 Loan modification: Sometimes you need a fresh start. This plan lets you add the missed mortgage payments and any related legal costs to your total loan balance. You and your servicer then come up with a new mortgage payment schedule. 4 Extra time to arrange a private sale: If you need to sell your home, this plan lets you delay a foreclosure so you have time to sell. 5 Short sale: If you owe more money than your house is worth, your servicer might agree to a short sale. This means the servicer will accept the total proceeds from the home sale (even if it’s less than the full amount you owe on the mortgage) as full payment of the debt you owe. 6 Deed in lieu of foreclosure: This plan lets you avoid the foreclosure process by signing over the deed to the home to your servicer. The home will then belong to the servicer.

What to do if you are behind on your VA mortgage?

If you’re behind on your mortgage payments and you get this type of offer from someone you don’t know, contact the servicer of your mortgage or your nearest VA regional loan center for advice. They can let you know if it’s an honest offer.

What is a mortgage repayment plan?

Repayment plan: If you’ve missed a few mortgage payments, this plan lets you go back to making your regular payments, with an added amount each month to cover the ones you’ve missed.

What happens if you short sell your house?

Short sale: If you owe more money than your house is worth, your servicer might agree to a short sale. This means the servicer will accept the total proceeds from the home sale (even if it’s less than the full amount you owe on the mortgage) as full payment of the debt you owe.

What is the VA loan limit?

The VA-backed home loan limit refers to the amount we’ll guarantee (the maximum amount we’ll pay to your lender if you default on your loan). We don’t limit how much you can borrow to finance a home.

How to contact VA Regional Loan Center?

You can talk to your lender or call us at 877-827-3702 to find the nearest VA Regional Loan Center. We’re here Monday through Friday, 8:00 a.m. to 6:00 p.m. ET.

What is VA funding fee?

The VA funding fee is a one-time payment that the Veteran, service member, or survivor pays on a VA-backed or VA direct home loan. This fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn’t require down payments or monthly mortgage insurance.

Can you add VA funding fee to refinance?

You should know that adding the VA funding fee and other loan costs to your loan could lead to you owing more money than the fair market value of the home. This could reduce the benefit of refinancing since your payment wouldn’t be as low as you may want it to be.

What is VA loan?

VA loans are for primary residences and borrowers are expected to live in the properties they purchase. To ensure this, the VA developed occupancy requirements that make certain homeownership is the borrower’s intended purpose – essentially ruling out the ability to purchase an investment property or vacation home.

How long can you stay in a VA home after closing?

Exceptions to the VA Loan Occupancy Requirements. There are a few scenarios and living situations in which a VA buyer can purchase a home and occupy it after the 60-day mark. Still, the VA typically requires service members set an occupancy date for less than 12 months after closing a loan. In addition, service members need to make clear ...

Does the VA have occupancy requirements?

The VA has occupancy requirements for veteran borrowers, but there are some exceptions to the rules we'll explore below. VA loans are for primary residences and borrowers are expected to live in the properties they purchase. To ensure this, the VA developed occupancy requirements that make certain homeownership is the borrower’s intended purpose – ...

Does VA allow intermittent occupancy?

The VA allows for intermittent occupancy due to employment, as long as the borrower has a history of continuous residence in the community and there are no indications of a primary residence established elsewhere. However, use of the property as a seasonal vacation home will not satisfy the occupancy requirements.

How long do you have to occupy a VA home?

How long do you have to occupy a home purchased with a VA loan? Typically, homebuyers have 60 days from closing to occupy a home purchased with a VA loan. However, the VA does allow homebuyers in certain situations to go beyond the 60-day mark, potentially extending up to one year.

Can you occupy a VA home after repairs?

However, you must certify your intent to occupy or reoccupy that property upon completion of the repairs or improvements.

How long after applying for VA loan can you retire?

If you plan on retiring within 12 months after applying for your VA loan, you might be able to negotiate for a later move-in date. A retiring veteran must include a copy of their application for retirement, and VA lenders will carefully consider if the retiree’s income is sufficient to maintain a home loan.

What is closing cost?

Closing, or settlement, costs are expenses related to the application and loan process. These can include the lender’s origination fee, appraisal and inspection fees, title search and insurance fees, and other costs. Unsurprisingly, those fees add up. Closing costs are typically 2-5% of your loan amount. A number of factors determine your specific ...

Does VA cover closing costs?

The U.S. Department of Veterans Affairs (VA), which insures VA home loans, allows sellers to cover up to 4% of the home price in closing costs. You can also use closing cost assistance programs to reduce your out-of-pocket expenses, and you may roll the funding fee into the loan as well.

Can you negotiate with a seller to pay closing costs?

You can negotiate with the seller to pay some of the closing costs ( the VA allows sellers to cover up to 4% of the loan in closing costs). Your lender may also be able to roll your VA funding fee into the loan. Additionally, the lender can give you a credit in exchange for taking a higher interest rate.

What is the origination fee for VA loans?

Origination fee – up to 1% of the loan amount. The origination fee is charged by the lender. The fee covers the cost to take and process a loan application. The VA allows lenders to charge up to 1% of the loan as the origination fee. But you can negotiate a lower fee.

How much does a VA appraisal cost?

Appraisal and inspection fees – $500 each. VA loans require an appraisal from a VA-approved appraiser. Home inspections are usually optional, but it’s a good idea to schedule one. The inspection can reveal serious concerns with the home, and you want to know as much about the property as possible before you buy it.

Do VA loans have a funding fee?

Any time you take out a VA loan, a funding fee will be involved, unless you’re exempt due to a disability. The funding fee increases significantly for 0% down VA loans after the first time you use the benefit.

What is discount point on VA loan?

Discount points buy down the interest rate on the VA loan and reduce your payments. The fee is not required and usually not very beneficial. With rates already so low currently, it’s likely not worth buying down the rate. It’s probably a better idea to use that money for a down payment or to keep in an emergency fund.

Eligibility

• You must have satisfactory credit, sufficient income, and a valid Certificate of Eligibility(COE) to be eligible for a VA-guaranteed home loan. The home must be for your own personal occupancy. The eligibility requirements to obtain a COE are listed below for Servicemembers and Veterans, spouses, and other eligible beneficiaries. VA home loans can be used to: 1. Buy a home, a condo…

See more on benefits.va.gov

Eligibility Requirements For VA Home Loans

Other Eligible Beneficiaries

Restoration of Entitlement