VA Loans Insider Page 2

  • Restoration of Entitlement: How to Reuse Your VA Loan Benefit in Full

    Restoration of Entitlement: How to Reuse Your VA Loan Benefit in Full

    VA entitlement is a financial guaranty from the government, which pledges to repay a portion of your home mortgage in the event of default. Your VA entitlement is a specific dollar amount. Veterans and service members using the VA loan benefit for the first time have their full VA loan entitlement available, which allows qualified buyers in most of the country to borrow up to $424,100 before having to make a d…

  • A Closer Look at VA Jumbo Loans

    A Closer Look at VA Jumbo Loans

    VA jumbo loans offer veterans and military buyers significant benefits, especially compared to the conventional jumbo landscape. First, let’s define “jumbo.” Regardless of the VA’s county limit, anytime a veteran wants a loan greater than $424,100, they’re likely looking at a jumbo mortgage loan. That figure represents the “conforming” loan limit for conventional loans, and it’s also the current VA…

  • Explaining VA Loan Residual Income Guidelines

    Explaining VA Loan Residual Income Guidelines

    The VA’s residual income guideline offers a powerful and realistic way to look at affordability and whether new homeowners have enough income to cover living expenses and stay current on their mortgage. Residual income is a major reason why VA loans have such a low foreclosure rate, despite the fact that about 9 in 10 people purchase without a down payment. The heart of this is discretionary income. Residual …

  • Using a VA Loan for Manufactured or Modular Housing

    Using a VA Loan for Manufactured or Modular Housing

    Out of the gate, it's incredibly important to make this distinction: Modular homes and manufactured homes are not the same thing, at least as far as the VA home loan program is concerned. The VA loan offers many advantages that make homebuying easier and less expensive for veterans. Regardless of the home you choose, now is the time to get started on your VA home loan application. Manufactured homes are mobile …

  • VA Termite Inspections By State

    VA Termite Inspections By State

    The VA home loan program is focused on getting service members, veterans and military families into "move-in ready" homes that are safe, sound and sanitary. It's not as flashy, but we could also add "termite-free" to that list. VA  loan rules state that a wood-destroying pest inspection is required in certain parts of the country or in low-rise and high-rise condo units when the VA appraiser observes a poten…

  • Can I Have Bad Credit and Still Get a VA Home Loan?

    Can I Have Bad Credit and Still Get a VA Home Loan?

    This post was inspired by VA Loans Insider reader Mary Ann Parker, who asked about securing VA financing with less than perfect credit. In fact, one of the most common questions we receive is: Can I get a VA loan with bad credit? The answer isn't black-and-white, in part because there's no clear-cut definition of what "bad credit" actually means. For VA loans, borrowers will often need a FICO credit score of at le…

  • Short Sales and Seasoning Periods for VA Home Loans

    Short Sales and Seasoning Periods for VA Home Loans

    When is a foreclosure not a foreclosure? Short sales often get lumped together with foreclosure and its offshoot, the deed-in-lieu of foreclosure. But these aren't the same thing, and that can make a huge difference for homebuyers. Borrowers will almost always need to wait two years after a foreclosure before applying for a VA home loan, but VA guidelines do not set a required wait, or seasoning period, after…

  • How Your Military Discharge Can Affect VA Home Loan Eligibility

    How Your Military Discharge Can Affect VA Home Loan Eligibility

    Documenting your proof of service is an important step in the VA mortgage process. As with most military benefits, the nature of your discharge can affect your eligibility for a VA home loan. This isn’t an issue for most veterans. But in certain cases, you may need a more formal review before moving forward. Let’s take a closer look. Types of Discharges You're generally eligible for VA loan benefits if y…

  • Getting a VA Loan After a Bankruptcy

    Getting a VA Loan After a Bankruptcy

    For most prospective VA borrowers, experiencing a bankruptcy doesn’t mean you’re automatically out of the running for another VA-backed mortgage down the road. Although the VA loan process will be a little more difficult, it is absolutely possible to obtain a VA loan after bankruptcy. Bankruptcy filings in federal court have dropped nearly 35 percent in the past five years. But consumers still reeling…

  • A Simple Explanation of Second-Tier Entitlement on VA Mortgages

    A Simple Explanation of Second-Tier Entitlement on VA Mortgages

    There are a lot of myths and misconceptions out there about the VA loan program. Two of the most common are rooted in the concept of VA entitlement, which is basically the amount of money the VA pledges to guarantee in the event of borrower default. So let's get this out of the way at the outset: The VA allows veterans to have two VA loans at the same time in some situations. It's actually possible to have more t…