A VA loan is limited to an Owner occupied borrower, who must be a Veteran to have a loan. The link to the website is here for VA loan administration. http://www.benefits.va.gov/
Some quick Highlights on a VA loan are :
· Loan to value allowed is 100 % for Purchase, or cash out or interest rate reduction Refinance loan (IRRRL)
· VA loans have a one-time funding fee with no monthly mortgage insurance
· VA will finance a Manufactured home , Single family, PUD, Condo and Multi units for property types.
· VA credit rules are Generally less restrictive for seasoning after a serious credit event .. Chapter 7 BK seasoning is 2 years and Chapter 13 BK is 12 months and Foreclosures /Short sale is 2 years
· Cash Reserves for PITI Payment : for one unit purchase is NONE. For a 2-4 unit purchase - if not using Rental income to qualify then no extra reserves required; if they are buying multiple unit, AND using rental income to qualify.. then the Veteran needs 6 months Reserves.
· The VA itself must approve any assumption of a mortgage.
· Interested parties like an Real Estate Agent, or Seller can contribute up to 4 % towards buyer’s closing costs or prepaid reserve account. Some Consumer Debt Can be paid off with these contributions to help a Veteran Qualify for financing.
VA Loan limits range from 417,000 in WA State to 540,500 for select counties for a one unit primary residence home-. Multi units follow their own loan size limit … http://www.fhfa.gov/DataTools/
Downloads/Documents/ Conforming-Loan-Limits/ FullCountyLoanLimitList2016_ HERA-BASED_FINAL.pdf
· Property type, loan amount, Credit score and Propose of loan can impact if you can or cannot do a transaction.
Today's blog courtesy of Cheryl Taylor, American Pacific Mortgage,