- The Department of Veteran’s Affairs (DVA) partially
partially guarantees DVA loans
- DVA loans are made to
qualified military servicemen and women.
- DVA loans require no
no down payment (100% financing).
- DVA loans require no
no monthly insurance premium.
- On a DVA loan Generally look for DTI that does not exceed
look for DTI that does not exceed 41%
- DVA loans DO require a
non-refundable one-time variable funding fee at closing.
This is waived for disabled veterans and surviving spouses.
- DVA loans require a veteran to produce a
Certificate of Eligibility (COE)
which shows the amount of his entitlement
- On a DVA Loan a DD-214 (commonly called Discharge Papers or Report of Separation) is issued by the
Department of Defense
is required if the Veteran has been discharged
- On a DVA Loan a NGB 22/23 for Army or Air National Guard reservist with six or more years of reserve service
– required if currently “active”.
- On a DVA Loan a General Orders for members of the military, currently on active duty with qualifying services remaining -
required if currently “active”.
- An entitlement is the maximum amount that the DVA will “guarantee” on behalf of a Veteran. Veterans’ entitlement is based on 25% of the County Limit($647,200) in most counties). If an entitlement is insufficient, a
If an entitlement is insufficient, a cash down payment may be allowed for the balance.
- If legally married, spouse’s income may also be considered for qualification purposes. Non-married co-borrower is not allowed on a
DVA loan unless he or she is an eligible veteran who will occupy the home.
- Two eligible veterans may combine their
V.A Benefits to qualify for a larger loan
- The DVA doesn’t limit the price a veteran can pay for a house – but it does limit
the amount it will guarantee to
25% of the purchased price (or value -whichever is less).
For example – if a home is selling for $350,000, the MAX amount the DVA will guarantee is $87,500 or 25% ($350,000 x 25%)
- A DVA appraisal is known as a
Certificate of Reasonable Value (CRV). It can also be called a Notice of Value (NOV).
- A V.A loan is
assumable; it does not have a due-on-sale clause.
- DVA loans have a __% late fee (of the P&I only)
4% late fee (of the P&I only)
- Lender may also charge a flat fee, up to __% of the loan amount, to cover the lender’s costs.
1% of the loan amount, to cover the lender’s costs.
- Seller concessions exceeding __% of the established reasonable value of the property are unacceptable. Max seller concession on a DVA loan is ___%.
4% of the established reasonable value of the property are unacceptable. Max seller concession on a DVA loan is 4%.
- Residual income is the amount that is
Left over to purchase necessities like food and gasoline after all other expenses are paid.
(The numbers are based on a report filed by the Department of Labor’s Bureau of Labor Statics and is available on their website.)
- No mortgage insurance(On V.A Loans), Instead of mortgage insurance, there is a
one-time variable VA funding fee that can be included in the loan.
- The DVA typical funding fee is
2.30 percent of the purchase price of the home.
- If legally married, spouse’s income may also be considered for qualification purposes:
non-married co-borrower is not allowed on a DVA loan unless he or she is an eligible veteran who will occupy the home.
- Two eligible veterans may combine their DVA Benefits to
to qualify for a larger loan.
