VA Home Purchase FAQ’s


Can I purchase a home with no down payment?

Yes, VA is one of the few programs left to allow you to do this.

My realtor says VA loans are tough to get approved and the appraiser is picky, is this true?

With a reputable lender a VA loan should not be any more difficult to approve than other types of loans. Although VA appraisers inspect the home more thoroughly, chances are if it does not pass with the VA appraiser, it wouldn’t pass with a non VA loan. It is actually to your benefit that the VA appraiser looks at the home more carefully to ensure you are getting into a home that doesn’t need a ton of work.

Do I pay private mortgage insurance on my VA Loan?

There is NO Private Mortgage Insurance on any VA Loan

Does a VA loan take longer to complete than other types of financing?

It shouldn’t if your lender is knowledgeable with VA loans. The VA loan process for purchasing a home can be completed in less than 30 days if need be with a competent lender. Let us show you how.

If I am eligible for a VA loan, does this guarantee I will be approved?

No, eligibility just means you are able to apply. You still have to qualify on an income and credit basis to be approved.

Can the seller pay closing costs when I purchase a home?

Absolutely. Currently The VA allows approximately 4% to be paid by the seller.

A lender told me that I can get the seller to pay off some of my credit card debt when I purchase a loan, surely this isn’t correct is it?

: It is in fact true. Although some realtors, sellers or even lenders may not like to do this, it can be done. An experienced VA Specialist like us can help show you how to accomplish this.

I was told there are no closing costs with the VA, do I have to pay any?

The VA does regulate how much a lender can charge and what specific fees are allowable or not, but yes you may have to pay some fees when purchasing a home. The lender may give you an option where they don’t charge you anything, and ,may even pay 3rd party fees such as title and closing.

I am not currently married but can my significant other be a borrower with me on the loan?

The only parties that can be on the loan are married couples (by military definition) or joint borrowers who both have eligibility and wish to split it.

I was turned down for another loan program and I have a bankruptcy in the past can I qualify for a VA loan still?

It is possible to be approved for a VA loan even if you had a bankruptcy in the past or were turned down for other types of financing. Since each situation is different, please contact us so we can give you further details.

Can I use a VA loan to purchase a 2nd home or a rental?

No, you can only use VA if you intend to occupy it as your primary residence.

What is the difference between seller concessions and seller paid closing costs?

Seller concessions and closing costs are often misunderstood when it comes to VA loans. They are treated differently and a knowledgeable VA lender can help maximize these to the Veterans benefit when purchasing a home.
Per the Veterans Administration, “a seller concession can be anything of value added to the transaction by the builder or seller for which the buyer pays nothing additional and which the seller is not customarily expected or required to pay or provide.“
Seller Concessions can consist of paying the VA funding Fee, prepayment of taxes and insurance (prepaid items), payment of extra points (not customary to market) for permanent buy down of rate, payoff of credit balances and judgments. Yes that is right, credit cards can be paid down or off from the seller concessions.
The VA does not consider a closing cost a part of seller concessions. So, what does the VA consider a closing cost?  Title work, recording fees, lender fees, and customary market discount points (In my opinion there isn’t a customary point that needs to be charged by a lender).
This may be confusing to home buyers, realtors and other familiar with home loans because we think closing costs consist of everything listed above.  However, This is how the Veterans Administration chooses to define it.
Now, as far as the caps that the VA will allow, here they are. For sellers concessions, the seller can pay up to 4% max of the sales price. So, on a $350,000 home, the Seller can pay up to $14,000 towards concessions.  There is NO cap on seller paid closing costs for VA loans so the seller can also agree to pay for all of these as well.  The total of seller paid closing costs and seller concessions can be above 4% total, but not more than 4% can come from concessions. We can go over this with you to ensure what is considered a closing cost or concession.