Carol Swain
(215) 757-7257

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Veteran and Active Duty Home Buyers

The VA Home Loan program makes it easier for veterans and active duty military to purchase a
home in today's real estate market.  However, for many first time home buyers, buying a home
seems almost impossible.  This is not the case when you are dealing with The Swain Group, of
Keller Williams.  The Swain Group specializes in Veterans, and active duty military homebuyers. We have the experience and knowledge dealing with the complexity of VA financing.  The Swain Group will
guide you through the process making it trouble-free. 
 

Benefits

· No Down Payment
· No Move-In Costs
· Low Payments
· Debt Consolidation Options
· Negotiable Interest Rate
· Ability to finance VA funding Fee
· Right to prepay without penalty
· No Mortgage insurance premiums

Steps to a VA Loan

1. Determining Eligiblity

VA guaranteed home loans benefit veterans because they do not need to make a down payment and there is no upper limit or required cap on the income of the borrower.  Without a down payment as security against foreclosure, lenders receive a certificate of guaranty from VA.  In essence, as gratitude for honorable military service, the government is vouching for the veteran's trustworthiness to repay his/her debt.

To determine eligibility, a military veteran, active duty person, or a member of the national guard or selected reserves, must submit a VA Form 26-1880 along with proof of service (DD Form 214, a statement of active duty, or proof of participation in the national guard or reserves) to the VA Eligibility Center, P.O. Box 20729, Winston-Salem, NC 27120.  Based on the applicant's length and type of service, VA issues a certificate for each person determined eligible to apply for a VA guaranteed home loan.  Check the status after ten days by calling 1 (888) 244-6711 between 8:00 - 4:00 Eastern time.

2. Viewing and Inspecting the Home

Home buyers usually use the services of state-licensed real estate agents to: determine an affordable price range, suggest certain home features suitable for the buyer, schedule home tours, negotiate sales contacts and hold earnest money deposits.  State-licensed real estate professional can explain the legal requirements for buyers and sellers, and can refer buyers to local lenders and certified home inspectors.  Buyers should accompany their preferred home inspector during the inspection of the property to ask questions about the home's systems.

3. Requesting the Loan

Home buyers may want to contact a lender even before they sign a contract for a home, so that they can be pre-approved to determine their maximum mortgage amount.  Home buyers who wish to obtain a VA guaranteed loan should make sure that the sales contract includes a phrase, sometimes called a financing contingency, making the contract subject to approval for a VA guaranteed loan.  Lenders verify and review past and present job and credit history of home applicants, and compare it with VA loan approval guidelines.  If the documents with the loan request cannot be approved, then additional written information must be presented to the lender or the VA for further consideration.

VA Lender Appraisal Processing Program (LAPP) lenders can process loans faster than other lenders. VA LAPP lenders do not need to send any paperwork to VA until after the home sale is closed. VA's long-standing policy is not to recommend any specific lender.

VA recommends that buyers compare lending terms among several lenders in order to find the best combination of interest rates, discount points, and other negotiable costs for a VA guaranteed loan.

4. Appraising the Property

When an eligible veteran contacts a lender to request a VA guaranteed loan, the lender obtains a VA number for the request via the Internet.  The lender uses the VA number to monitor progress of the appraisal and loan application.  The lender also sends a VA form to a state-licensed real estate appraiser who will visit the home to give the lender and VA an opinion of the market value of the property.  The appraisal tells the lender and VA whether the property is expected to be adequate collateral for the requested loan.  Neither the appraisal of the home nor the VA guaranty is a warranty from constructional defects and their resulting repair costs.  Builders and brokers can issue warranties for the condition of the home's structure and systems.

5. Closing the Sale

If the loan and home are approved, the buyer needs to contact a state-licensed insurance agent who will provide homeowner coverage to protect the owner and lender from property damage and loss.  Title to the home is usually examined and insured by a title insurance company that may also prepare closing documents and enter them into public records after the closing. After the home is purchased and the loan is originated, the lender usually sells the active loan to another company which will receive the loan payments and pay the real estate taxes and insurance premiums. 

For more information on VA loans or to see if you qualify, contact The Swain Group at (215) 757-7257 or swaingroup@swainsells.com.