VA Loans

Many veterans use this program because there is no down payment requirement. There is also no PMI required on VA loans which is a tremendous saving on your payment. VA does charge a funding fee which is a fee to use their program. It can be financed into the loan. Here is a link to the funding fees. If you used a VA loan more than once the funding fee does go up. This is called a Subsequent Funding Fee or After First Use. 

 www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/#va-funding-fee-rate-charts 

If you are a veteran looking to buy a home this is traditionally the cheapest and simplest type of financing available.

Disabled Veterans can qualify for an exemption on the funding fee discussed above. This will be referenced on your certificate of eligibility (also known as COE). 

Depending on your county you may also qualify for property tax discounts or even exemptions. These rules do vary from county to county so please call your county.

Appraisal Requirements are very similar to FHA 

-There must be smoke detectors within 15 feet of every bedroom. One detector can service multiple bedrooms.

-There must be a carbon monoxide detector on each floor/level of the home.  

-The roof must be in good shape with no missing shingles or leaks. If there is a concern over the roof a roof certification can be done. I believe FHA requires the roof to have at least a 2-year life expectancy or more. 

-There can not be any mold or mildew in the home. Water in a basement or crawlspace is an issue and should be cleaned up and dried out before inspections.

-Gutters must have downspouts and extensions

-There can not be any exposed electrical. If a cover is off an outlet it needs to be put on.

-Peeling paint is the biggest item we run into. If there is peeling paint inside or outside the home it needs to be scraped, cleaned up, and any bare wood primed or painted. 

-Any stairway with more than 2 steps needs a railing.

Anything that the appraiser has a concern over will need to be addressed. 

VA does allow a refinance of your loan. However, there are some important things to be aware of. 

If you bought a home you can not refinance into a VA loan for 240 days. 

If you already own a home that is paid off VA will not offer you financing. There must be a mortgage lien on the house to refinance as a VA loan.

If you already have a VA loan and want to refinance the existing loan balance back into a VA loan they have a program called IRRRL. This is a reduced documentation refinance process. VA doesn't even require an appraisal or income documentation from the lender other than an employment verification. This is truly a pain-free refinance.