VA LOANS
These loans are often made without any downpayment at all,
and frequently offer lower interest rates than ordinarily
available with other kinds of loans. Aside from the veteran's
certificate of eligibility and the VA-assigned appraisal,
the application process is not much different than any other
type of mortgage loan. And if the lender is approved for automatic
processing, as more and more lenders are now, a buyer's loan
can be processed and closed by the lender without waiting
for VA's approval of the credit application. Additionally,
if the lender is approved under VA's Lender Appraisal Processing
Program (LAPP), the lender may review the appraisal completed
by a VA-assigned appraiser and close the loan on the basis
of that review. The LAPP process can further speed the time
to loan closing. More than 29 million veterans and service
personnel are eligible for VA financing. Even though many
veterans have already used their loan benefits, it may be
possible for them to buy homes again with VA financing using
remaining or restored loan entitlement. WHAT CAN A VA LOAN
BE USED FOR? To buy a home, including townhouse or condominium
unit in a VA-approved project. To build a home. To simultaneously
purchase and improve a home. To improve a home by installing
energy-related features such as solar or heating/cooling systems,
water heaters, insulation, weather-stripping/ caulking, storm
windows/doors or other energy efficient improvements approved
by the lender and VA. These features may be added with the
purchase of an existing dwelling or by refinancing a home
owned and occupied by the veteran. A loan can be increased
up to $3,000 based on documented costs or up to $6,000 if
the increase in the mortgage payment is offset by the expected
reduction in utility costs. A refinancing loan may not exceed
90 percentof the appraised value plus the costs of the improvements.
To refinance an existing home loan up to 90 percent of the
VA-established reasonable value or to refinance an existing
VA loan to reduce the interest rate. To buy a manufactured
home and/or lot.
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