CITY INSIGHT HOUSTON   •   May 20, 2019

A VA loan is a type of mortgage loan guaranteed by the Department of Veterans Affairs, or the VA. The program is for American veterans, military members currently serving in the U.S. military, reservists and select surviving spouses (as long as they do not remarry) and can be used to purchase homes, condominiums, apartments, manufactured homes and new construction. The VA does not originate loans, but sets the rules for who qualifies, issues guidelines and requirements regarding which mortgages may be offered and financially guarantees loans that qualify under the program. For help with finding the best home visit our services. A VA loan is different than other loan programs in that it doesn’t require a down payment or mortgage insurance and it’s easier to qualify for than other programs. Since a VA loan is unlike other home loans, here are three things you’ll want to make sure to do when dealing with a VA client.

1) Get An Inspection Right Away

The sooner you get the physical and termite inspections the better. In a typical home loan, the lender would be able to order the appraisal for the home and have them come out the next day if necessary. However for a VA loan, they have up to 10 days to complete. This means that they can take the whole 10 days to come out. Whether they find something in the inspection or not, your client would be stuck after the option period.

2) Zero Downpayment

It is common to see a zero downpayment on offers or when receiving an offer from a VA client. Do not let this deter you from working with a VA client. This is normal and requires no further verification from the lender.

3) Allowable and Non-Allowable Fees

VA loans have specific fees for their clients that are deemed allowable and non-allowable regardless of the 1% origination fee being charged. Unless a fee is mandated by a city, county or state, and is not on the allowable fee list, it cannot be charged to the veteran if a 1% fee was charged. Make sure you get more information from your lender about what fees are allowed and which are not.

Although a VA loan slightly differs from a typical home loan, it is still a wonderful program available to veterans and is not difficult to work with. These three tips should help you avoid mistakes and complete the transaction to get your client into their dream home.

For Information on VA Loans visit https://www.benefits.va.gov/homeloans/