Question 1

$0 Down Payment VA Loan

Accepted Answer

The VA Home Loan is the best home loan option with $0 Down Payment. Additionally there is NO Private Mortgage Insurance (PMI) that is required on other loan types with less than 20% Down Payment.

Question 2

Does VA have a minimum credit score?

Accepted Answer

The simple answer is NO…. The VA does not have a minimum credit score. The reason there is so much confusion with this question is because some Lenders have overlays (their in-house polices) to determine their company minimum score.

This is why it benefits to select Homes for Veterans as your Real Estate Company. We know which Lenders do not have overlays and work with No credit scores and look at the residual income.

Question 3

Can a VA loan be used for new construction on your own land?

Accepted Answer

Yes the VA Home Loan can be used to build a new construction loan on your own piece of land. There will be a one time closing to combine the two into one loan (house & land). Very few lenders offer this option and only offer the new construction already being built by the builder. This is where it benefits the Veteran to select Homes for Veterans as their REALTOR.

Question 4

Can a 100% disabled (service connected) Veteran get a loan 100% disabled higher loan from the start of the loan?

Accepted Answer

Yes. A Veteran that is 100% service connected disabled can have their loan from their start approved with no tax into their monthly payment. It also means that their loan amount will be approved for a higher amount without the tax into the equation. However not all Lenders offer this offer.

Question 5

Is a disabled (service connected) Veteran able to get a reduction in property taxes in Texas?

Accepted Answer

Yes, Veterans that are 30% or higher service connected disability are entitled to a reduction in property tax. Veterans that are 100% disabled are exempt 100%.

Question 6

Do all Veterans have to pay for the Funding Fee?

Accepted Answer

NO….. The funding is not paid by Veterans that have 10% or higher service connected disability or Purple Heart.

Question 7

Can a VA Home Loan be used for an Investment property

Accepted Answer

No…. The VA Home Loan is for a homeowner that intends to occupy the property for minimum of 1 year. There are exceptions for unforseen circumstances and move-out earlier. The Veteran can at lease the property and purchase another property. In many cases using the remaining VA entitlement.

Another option is to purchase a multi-family property, like a 2-plex, 3-plex, 4-plex as an example. The Veterans can live in one of the units and rent the other units.

Question 8

Can a Veteran use the certificate of eligibility more than one time?

Accepted Answer

Yes a Veteran can use their certificate of eligibility more than once if there is eligibility left on their entitlement. At times a Veteran could be using more than one Veteran Loan at one time.

Question 9

Does the VA determine the interest rate?

Accepted Answer

No, all interest is set by the lending institutions.

Question 10

Do Veterans have any additional entitlements in Texas?

Accepted Answer

Yes, Veterans are entitled to Home Loan & Land Loans with just 1 day of living in Texas. Land loans are financed with low interest rate & low down payment through the Veterans Land Board (VLB).

Question 11

What is the maximum VA Home Loan financing?

Accepted Answer

If the Veteran has not used their entitlement the loan financing is UNLIMITLED, as long as the Veteran can afford it. If the Veteran has used their entitlement before then the entitlement is limited to the county maximum. Every county varies.

Question 12

What is the max Seller contribution on closing cost?

Accepted Answer

There is a Myth that on a VA Home Loan it is maxed at 4%. The is absolutely false. It is 4% + additional closing cost that is customary in your area. We are experts in this subject and can structure your contract offer to usually include a 6-7% of Sellers concessions paid towards the Veteran Buyer's loan.

Question 13

Can a Veteran purchase a home that requires repairs?

Accepted Answer

Yes.... a home can be purchased under the VA Home Loan with repairs needed, under the renovation loan. However, not all Lenders offer this loan.

Question 14

Can a Veteran purchase Land only?

Accepted Answer

Yes. In Texas a Veteran has a special option through the Veterans Land Board to purchase 1 minimum acre up to unlimited amount of size up to $150,000.

The Veteran’s Realtor

“Serving The Entire State of Texas”

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VA Home Loan Myths