The first home we ever bought was through VA.  We bought our second home with the assistance of VA.  I have made it my mission to fully understand all aspects of a VA loan.  I can assure you that out of all the lenders in Hawaii, I know how to make a VA loan work.  Feel free to call our local VA office for a recommendation.

VA Advantages 

• No down payment on sale prices up to $612,335 and $625,000 for disabled veterans.
• Down payment of 25% of the difference is required for sale prices over this amount.
• The entire down payment and closing costs may be gifted (a relative can give you these funds).
• Seller may pay all closing costs and up to 4% of the sales price towards funding fees and debt pay-off.
• No monthly mortgage insurance.
• No prepayment penalty.
• Assumable subject to VA approval.
• Interest rates and discount points are freely negotiated between the borrower and the lender.
• Property: 1-4 Family Homes, including townhouses or condo units in VA and FHA approved projects are eligible, as well as new construction.

MORE VA INFORMATION

LEASEHOLD PROPERTY:  The loan term cannot exceed the fixed portion of the lease.

CO-BORROWERS:  Restricted to the veteran’s spouse or to another veteran who will be an occupant.  In the event two non-married veterans purchase a home together, the entitlement used will be split evenly between them.

CO-SIGNERS:  Not allowed

REFINANCING:  Interest Rate Reduction Refinances (IRRRL’S) with no credit qualifying or appraisal can be done at anytime provided the veteran had occupied the home as his principal residence.  On a regular or cash-out refinance, the loan is restricted to 90% loan to value, up to a loan amount not to exceed $144,000.

ASSUMABILITY:  Loans closed prior to 3/1/88 are fully assumable at any time without release of liability.  Loans closed after require a credit worthiness review by V.A. or the lender.

HOW DO VETERANS OBTAIN THEIR CERTIFICATES OF ELIGIBILITY?

CERTIFICATE OF ELIGIBILITY:  As a full service lender, we will order your Certificate of Eligibility (COE) for you.  You will need to complete the following:

STATEMENT OF ACTIVE MILITARY SERVICE:  Active Duty Personnel should obtain a “Statement of Active Military Duty” from their Commanding Officer, reflecting current rank and length of service, as soon as possible.  We can email a blank one to you.

VA BENEFIT RELATED INDEBTEDNESS:  If you are a disabled veteran, the funding fee can be waived.  Provide a bank statement reflecting VA disability pay and we will file for your exemption.

AUTHORIZATION TO RESIDE OFF-BASE – ACTIVE MILITARY ONLY:  For active duty personnel currently living on base who will use housing allowance (BAH) as qualifying income, a completed DD-1747 must be obtained form the Base Housing Office.  Officers are exempt.