Frequently Asked Questions
What is a COE? Where can I get it?
COE stands for Certificate of Eligibility. It is the certificate that proves that you as the veteran are eligible for a VA guaranteed home loan. The Volentine Team can get these for you during the loan process.
Why use my VA home loan benefit?
The VA loan is a program set up to help active duty and retired military personnel into homes. They will give you 100% financing on a home without having to pay mortgage insurance at a very competitive rate. The VA also limist the types of fees that can be charged protecting against predatory lending.
How do interest rates fluctuate?
Interest rates can change daily, sometimes even a couple of times in the same day. They are based on the 30 year mortgage bond and many other market factors. Credit, employment status, loan program, and many other thigns can also affect your interest rate.
What is a funding fee? Do I have to pay for this?
For a Purchase or Cashout: VA funding fee is a fee added to your loan that goes to the Veterans Administration. For your first time use of a VA loan, your funding fee is 2.15% of your loan amount. For each subsequent use it is 3.3%. You will be required to pay it unless you have a service related disability of 10% or greater in which case the funding fee is waived.
For an IRRRL(Interest Rate Reduction Refiance Loan): The funding fee is .50%
What do I need to get qualified? Am I eligible?
For an IRRRL- We just need an online loan application completed, copy of mortgage statement and copy of mortgage note. We can process your COE.
For Purchase and IRRRL- We just need online loan application completed, 30 days paystubs, two years most recent tax returns and W2’s and or 1099, 60 days most recent bank statements, if needed.
What are the benefits of a VA loan?
The VA loan offers 100% financing with no mortgage insurance. The loan is assumable and you are eligible for a streamline refinance if rates go down. It offers great rates and is less strict on credit than most conventional loans.
Can I get an interest only loan?
The VA loan does not offer an interest only option at this time. We do have access to interest only conventional programs and would be happy to put you into one of these programs.
May I purchase land with the VA?
No, the VA loan is designed for existing home purchases or new construction. They are unable to do land loans at this time.
May I use my VA eligibility more than once?
Yes, and in some cases you would be able to hold two VA loans at the same time.
What is the fee for a 2nd time use of a VA loan?
3.3 %, unless you have 5% to put down in which case it is only 1.5%
Does it matter what your credit score is with the VA?
The VA doesn’t put an extraordinary amount of weight on credit scores, but does look for a clear 12 month history.
May I use my grandfather/father VA eligibility for myself?
No, only the veteran themselves or the surviving spouse of a veteran killed during active duty is eligible for the VA benefits.
May I use a co-borrower to help get approved?
VA guidelines will only allow a spouse to be a co-signer. We are able to provide conventional financing as well which may be more suitable if a co-signer other than a spouse is needed for qualification.
May I use my spouse as a cosigner so that I can get a larger VA Home Loan?
You may use your spouse to qualify. However, if a spouse’s income is used, their liabilities must be included as well.
May I get two VA loans at once?
You may be able to have two VA loans if you have entitlement available. The best way to determine your entitlement and eligibility is to contact us.
Does it cost anything to get prequalified?
No, it does not. Our professional loan specialists take great pride in helping veterans and military personnel get into homes.
What is the difference between a VA loan and a conventional loan?
VA Loans are guaranteed by the Veterans Administration and allow for no money down and easier qualification most of the time. Conventional loans require 5% down and often times mortgage insurance.
Are the VA rates the same as conventional rates (better/worse)?
They are not exactly the same. Everything being equal normally VA rates are lower than conventional rates.
Does my credit score affect my rate?
It some cases credit scores below 620 will impact on your rate, contact us for a rate quote.
May I get a VA loan with having a bankruptcy? How long must I wait after filing?
Yes. You must be at least 1 year out of a Chapter 13 and 2 years out of Chapter 7. You also must have no late payments in the last year.
I have bad credit, can I still get a VA Loan?
Each situation is unique. I would advise calling us to go over your situation.
My credit is 580, can I get approved for a VA loan?
There are two types of VA approvals. One is an automated approval ;the other is a manual underwrite. We are able to manual underwrite credit scores down to 560.
Can I have a friend on the loan with me?
Depends on the type of loan you want and if it is conventional or FHA. VA loans will only allow a spouse to co-sign on a VA home loan.
Does my veteran home loan entitlement expire?
Your entitlement never expires. However, your COE may need to be renewed if it is older than 12 months.
How much can I borrow with my VA Home Loan?
You can borrow 100% up to your county loan limits.
What’s the maximum VA home loan amount?
$3 million Call the Volentine team for details.
May I use a VA Loan to invest in real estate?
At this time you can only use the VA loan for a home that you intend on living in as your primary residence.
Are VA guaranteed loans, loans from the government?
The Veterans Administration does not give you the loan directly. They insure the loans that we originate for you, allowing you to get 100% of the appraised value of the home you are purchasing.
How do I find out how much I can afford?
The best way to find out how much you can afford is to 571-228-3852 and talk to a specialist.
If I get a VA Home Loan that has an Adjustable Rate, what does that mean?
Having an adjustable rate means that once you term is reached whether it is 3 years or 5 years, your rate will start moving with the market. If rates go up so does yours. If rates go down you can expect yours to go down as well.
Do I need to put money down in order to purchase a house with my VA Loan?
A VA loan covers 100% of the value of the home, you will however have to pay for any closing costs. The seller can pay up to 6%, which should cover more than enough of costs so you can get into your new home with no money out of pocket.
May I use my Veteran loan benefit to purchase a vacation home?
No, your VA loan has to be your primary residence.
I am currently active in the armed forces; may I still receive a VA home loan?
Yes. If it is a permanent resident and you are within 60 days of moving in.
What documents do I need for a IRRRL?
Online loan application, copy of recent mortgage statement, copy of mortgage note. We handle getting the
COE and getting the loan approved. With a IRRL there is no appraisal needed, no income needed, and no assets needed.
How long does it take to close a VA IRRRL Loan?
Normally it takes us 20-25 days to close. Since there is no underwriting and IRRL the process can move as fast as the borrower request. Some IRRL’s have closed within 15 days.