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You may use VA-guaranteed financing:
| 01 |
To buy a home.
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| 02 |
To buy a townhouse or condominium unit in a project
that has been approved by VA.
|
| 03 |
To build a home.
|
04 |
To repair, alter, or improve a home. |
05 |
To simultaneously purchase and improve a home. |
06 |
To improve a home through installment of a solar heating
and/or cooling system or other energy efficient improvements. |
07 |
To refinance an existing home loan. |
08 |
To refinance an existing VA loan to reduce the interest
rate and add energy efficiency improvements. |
09 |
To buy a manufactured (mobile) home and/or lot. |
10 |
To buy and improve a lot on which to place a manufactured
home which you already own and occupy. |
11 |
To refinance a manufactured home loan in order to acquire
a lot. |
(See VA Pamphlet 26-71-1 for more information about VA
manufactured home loans. Contact
us to see how you can obtain this pamphlet)
Additional Questions and Answers Related to VA Eligible
Loan Purposes
01
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Can a veteran get a VA loan to
pay off the mortgage or other liens of record on his
or her home?
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|
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Yes. The following refinancing
loans are available under the VA guaranteed home loan
program:
a.
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To pay off the mortgage and/or other liens
of record on the home. In most cases, the loan
may not exceed 90 percent of the reasonable value
of the property as determined by an appraisal,
plus the funding fee, if required. The loan may
include funds for any purpose which is acceptable
to the lender, plus closing costs, including a
reasonable number of discount points. A veteran
must have available home loan entitlement. An
existing loan on a manufactured home (except as
noted below) may not be refinanced with a VA guaranteed
loan.
|
b.
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To refinance an existing VA loan to obtain
a lower interest rate. Use of additional loan
entitlement is not required. The loan amount is
limited to the balance of the old loan plus the
closing costs, discount points, funding fee, and
up to $6,000 in energy efficient improvements.
An existing VA loan on a manufactured home may
be refinanced to obtain a lower interest rate.
|
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02
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Can a veteran get a VA business
loan?
|
|
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No. but business loans may be obtained through the
SBA
(Small Business Administration). The SBA gives
preference to veterans wishing to obtain small business
assistance.
For more information on this financing, consult your telephone
directory for the SBA office nearest you.
|
03
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Can a veteran get a VA farm loan?
|
|
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No, except for a farm on which there is a farm residence
which will be personally occupied by the veteran as a
home. The veteran may or may not conduct farming operations.
If farming operations are to be the primary source of
the borrower's income, then it must be established that
the venture has a reasonable likelihood for success. If
the borrower plans to use the residence, but has a source
of income other than the farm which will be the primary
source of income, then the farming operations need not
be considered. Other types of farm financing may be
obtained through the Farmers Home Administration which
gives preference
to veteran applicants. Additional information can be
obtained by contacting a local office of that agency,
the address
and telephone number of which can be found in your telephone
directory.
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04
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Can a veteran get a VA loan to
buy or construct a residential property containing more
than one family unit?
|
|
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Yes, but the total number of separate units cannot
be more than four if one veteran is buying. If more than
one veteran is buying, then one additional family unit
may be added to the basic four for each veteran participating;
thus, one veteran could buy four units; two veterans,
six units; three veterans, seven units, etc.
In addition, if the veteran must depend on rental
income from the property to qualify for the loan, the
veteran must (a) show that he or she has the background
or qualifications to be successful as a landlord, and
(b) have enough cash reserves to make the loan payments
for at least 6 months without help from the rental income.
|
05
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Can a veteran get a VA loan to
purchase a cooperatively owned apartment?
|
|
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Generally not. Statutory lien requirements, and the
fact that all or almost all of the members of the cooperatively
owned apartment must be veterans who are using their entitlement,
have presented considerable difficulties in obtaining
VA financing for these purchases.
|
06
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Can a veteran obtain a VA loan
for the purchase of property in a foreign country?
|
|
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No. The property must be located in the United States,
its territories, or possessions. The latter consist of
Puerto Rico, Guam, Virgin Islands, American Samoa and
Northern Mariana Islands.
|
07
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Can a veteran obtain a loan from
a private lender in one State for the purchase of property
in another State?
|
| |
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Yes. However, many lenders limit their lending operations
to certain areas.
|
08
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May a lender require security from
the veteran in addition to the property being purchased?
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| |
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Yes. This is a matter between the veteran and the lender.
While VA does not require that additional security be
taken, it does not object if the veteran is willing.
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