VA loan Flashcards
(22 cards)
The VA loan is a loan program established by the ________
Department of Veterans Affairs (VA)
The VA loan program is specifically designed to assist veterans and active military personnel in obtaining housing.
Does a VA loan require a down payment?
no
VA loans are notable for not requiring a down payment, making them accessible for veterans.
VA loans are provided by _____ ____
VA-approved private lenders
These lenders are authorized to offer VA loans to eligible borrowers.
For a VA loan, who sets the interest rate, discount points, and closing costs?
Lenders, not the VA
The VA does not control these costs, which can vary by lender.
The VA can make ____ ____ to veterans in areas where VA loans are not available
direct loans
This provision helps veterans access financing in underserved areas.
What are the qualifications for the VA program? (3)
must be a veteran, or an unremarried surviving spouse of a veteran, or active military personnel
These criteria ensure that only eligible individuals can benefit from VA loans.
A VA loan can be used to ____, ____, or _____ one-to-four-unit properties
purchase, refinance, or construct
This flexibility allows veterans to use VA loans for various housing needs.
A VA loan can be used to purchase, refinance, or construct ___-to-____ unit properties
1-to-4 unit properties
VA loans are specifically tailored for residential properties within this range.
Does the veteran need to reside in one of the units?
yes
The requirement ensures that the loan is used for the veteran’s primary residence.
What is the maximum loan term for a VA loan?
30 years
This term is typical for many mortgage products, allowing for manageable monthly payments.
What is the veteran’s entitlement, aka maximum entitlement?
the maximum amount the government guarantees the lender will be paid if the borrower defaults
This entitlement protects lenders and helps veterans secure loans.
The _______ states the amount of entitlement available to the veteran borrower
certificate of eligibility
This document is essential for veterans to access their benefits.
If entitlement was used in the past, the veteran may only be eligible for a ____
portion
This situation arises if the borrower has previously utilized their entitlement.
The veteran’s maximum entitlement is __ when the VA loan is paid off
reinstated
This reinstatement allows veterans to utilize their benefits again for future loans.
Previously, VA loans used ___ and ____ loan limits as the maximum guaranteed loan amount without a down payment
Fannie Mae and Freddie Mac
These limits ensured that loans remained within manageable amounts.
The amount a veteran may borrow depends on the _____ and the ___
value of the real estate & the veteran’s income
Both factors are critical in determining loan eligibility and amount.
What is the loan origination fee?
VA borrower pays a 1% loan origination fee to lender
This fee is standard and helps cover the lender’s costs.
What is the VA funding fee?
The VA charges a funding fee based on a sliding scale with lowest fees charged to first-time VA borrowers
This fee varies depending on several factors, including the borrower’s history with VA loans.
What is the TOR for a VA loan?
41%
This figure represents the total obligations ratio, which helps assess a veteran’s ability to repay the loan.
What closing costs cannot be charged to veteran borrowers?
commission, brokerage fees, and buyer-broker fees
Protecting veterans from certain closing costs ensures they are not overburdened financially.
Does a VA loan have a due-on-sale clause?
no
This feature provides flexibility for veterans regarding property sales.
Does a VA loan have a prepayment penalty clause?
no
This means veterans can pay off their loans earlier without incurring additional fees.
