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FHA / VA 
VA Benefits
VA Benefits allow the Veteran to buy a home with NO DOWN PAYMENT, but it
also waives the need for Private Mortgage Insurance. The Veteran saves money
up front and on each monthly payment.
Following these five steps, will help speed the process .
Five Steps to a VA Loan
Step 1: Obtain a Certificate of Eligibility
 Before you can get
a VA Guaranteed Loan, you have to establish that you are eligible for the benefit.
You do that by submitting an application (VA Form 26-1880) to the Regional Office, along
with proof of your military service. You can get the application by
calling 1-800-827-1000. If you are on active duty, you will need a statement
of service letter signed by your commanding officer on letterhead stationery
which verifies your service. If you are not sure what you will need contact Dondi and she will help you.
NOTE: DO NOT WAIT FOR YOUR CERTIFICATE OF ELIGIBILITY TO
ARRIVE TO START THE HOME BUYING PROCESS. STEPS 1, 2, & 3 CAN OCCUR
SIMULTANEOUSLY!
Step 2: Apply for the Loan
The lender will
furnish the forms you will need and help you complete them. The lender will also
obtain a credit report, employment and bank verifications, and all other information
needed to complete the loan package. To obtain a VA guarantee for your loan, you
will have to meet minimum credit standards. The lender will know these standards and
, when you apply, they will check to make sure you meet them before the loan will be
processed. Dondi can recommend several lenders that will assist you to get a VA
loan.
Step 3: Select your Home
Before you
start looking for a house, Dondi suggests that you take the time to read VA Pamphlets 26-4
and 26-6 which contain excellent information about the home buying process. The
pamphlets will be sent to you along with your Certificate of Eligibility. Dondi will
help you locate a home that fits your needs and complete an offer to purchase.
Step 4: VA Appraisal
Once an offer has been
accepted by both the buyer and the seller the lender will call the VA and obtain a loan
number and an appraiser. The appraiser will determine the market value of the home
and furnish a report to the VA. After VA reviews the report, they will issue a
Certificate of Reasonable Value. Both you and your lender will receive a copy.
The CRV establishes the maximum amount of the loan. NOTE: The VA Appraisal is NOT a Warranty. Dondi
strongly recommends hiring an independent home inspector to inspect the home.
The purpose of the appraisal is to determine the value of the home. It is not an inspection. If you find something wrong
with the home after the sale has closed, the VA will not be able to help you. That
is why it is important to have the home professionally inspected by a certified inspector
prior to the close of escrow.
Step 5: Closing the Loan
Once VA has
issued a Certificate of Reasonable Value, and your lender has the loan ready, the loan is
ready to close. Once the loan is completed and has met final approval, you and the
seller will meet at an attorney's office sign the paperwork. Once all documents are
signed, VA will be notified, and will guarantee the loan. Your Certificate of
Eligibility will be returned to you when VA issues the guarantee.
Important Points to Remember
The veteran is required by law to occupy the home as his or her
principal place of residence.
You cannot occupy the home before the loan closes. If the loan
should fail to close for any reason, you could experience an inconvenience when you have
to vacate the property.
The VA Home Loan Benefit is a great
opportunity for eligible Veterans.
Click on this link to
view VA Repo's in the Columbia area
Click on this link to visit the VA website
(you may access all of South Carolina with this link)
FHA Advantages
Entire down payment may come from a gift
3% down payment requirement and closing costs can be used to
satisfy this
No cash reserves required
Higher Qualifying Ratios apply
Seller can pay up to 6% regardless or the loan to value
Lower Down Payment Requirements than Conventional Financing
FHA Disadvantages
MIP is required regardless of down payment
MIP is higher than conventional PMI
- a 30 year loan requires 2.25% up front and
.50% monthly
FHA loan limits are lower than conventional loan limits
Note: Both VA and FHA can change their requirements at any time
Click on this link to visit HUD
Repo's in the Columbia area
(you may access all of South Carolina with this link)
e-mail: Dondi@SCRealty.net
Licensed to sell Real Estate in South Carolina
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