VA Flashcards
(25 cards)
What does VA stand for in VA loans?
Veterans Affairs
True or False: VA loans require a down payment.
False
What is the primary purpose of VA loans?
To provide financial assistance to veterans and active-duty service members for purchasing homes.
Fill in the blank: VA loans are guaranteed by the _____ Department.
U.S. Veterans Affairs
Which of the following is NOT a benefit of a VA loan? A) No down payment B) No mortgage insurance C) Higher interest rates
C) Higher interest rates
What is the maximum loan amount for a VA loan in most areas as of 2023?
The maximum loan amount varies by county, but it can be up to $1,089,300 in high-cost areas.
True or False: VA loans can only be used for purchasing single-family homes.
False
What is the purpose of the VA Funding Fee?
To help offset the costs of the VA loan program and is typically a percentage of the loan amount.
What is the typical credit score requirement for a VA loan?
While there is no minimum credit score requirement, a score of 620 or higher is often recommended.
True or False: VA loans can be used for refinancing existing loans.
True
What type of property can be financed with a VA loan?
Single-family homes, condos, multi-family homes (up to four units), and some types of manufactured homes.
Fill in the blank: VA loan eligibility is determined by the _____ of service.
length
What document is required to verify eligibility for a VA loan?
Certificate of Eligibility (COE)
True or False: VA loans have no prepayment penalties.
True
What is the primary difference between a VA loan and a conventional loan?
VA loans do not require a down payment and do not have mortgage insurance.
What is the purpose of the VA’s ‘Basic Allowance for Housing’ (BAH)?
To help service members cover their housing costs.
Which veterans are eligible for VA loans?
Veterans, active-duty service members, National Guard members, and some surviving spouses.
What is the significance of a VA loan’s ‘no mortgage insurance’ benefit?
It reduces the monthly payment and overall cost of the loan.
What is the purpose of the VA’s interest rate reduction refinancing loan (IRRRL)?
To help veterans refinance their existing VA loans at a lower interest rate.
How long must a veteran serve to be eligible for a VA loan?
At least 90 days of active service during wartime or 181 days during peacetime.
Fill in the blank: VA loans are designed to help veterans achieve _____ home ownership.
affordable
True or False: VA loans can be assumed by another eligible borrower.
True
What is the maximum term length for a VA loan?
Typically 30 years.
What is the primary requirement for a property to qualify for a VA loan?
It must be the borrower’s primary residence.
