VA Loan Frequently Asked Questions

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This list of VA Loan Frequently Asked Questions was assembled from our experience with the VA Home Loan Process to aid you search for a home.  This page will receive frequent updates.

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Frequently Asked Questions

  • Can the seller pay for my closing costs?

    Yes, the seller can pay for many of your closing costs. This must be negotiated and agreed to by the seller.
  • Are properties with overhead voltage lines crossing it acceptable?

    No part of any residential structure may be located within a high voltage electric transmission line easement. Any detached improvements even partially in a transmission line easement will not receive value for VA purposes.
  • Is a termite report required?

    Termite inspections are required on existing properties if they are located in an area where the probability of termite infestation is “very heavy” or “moderate to heavy” according to the Termite Infestation Probability Map published in the International Residential Code.
  • Should I get a home inspection?

    Yes, Absolutely.
  • What branches of the US Military are eligible for VA home purchase benefits?

    All of the US Armed forces which consists of the Marines, Navy, Air Force, Army and Coast Guard. Also the special reserves and the National Guard are eligible. Visit our eligibility page for more information.
  • How much is the VA funding fee?

    For active duty and veterans who pay less than 5% down the funding fee will be 2.15% or only 1.5% if you pay 5-10% down. For Reservists and National Guard purchases the funding fee will be 2.4% for those who have down payments of less than 5% down and 2.15% if a 5-10% down payment is made. If you have a service related disability of at least 10% the VA funding fee may be waived.
  • If a veteran dies before the loan is paid off, will the VA guaranty pay off the balance of the loan?

    No. The surviving spouse or other co-borrower must continue to make the payments. If there is no CO-borrower, the loan becomes the obligation of the veteran’s estate. Mortgage life insurance is available but must be purchased from private insurance sources.
  • May a veteran join with a non veteran (ex. girlfriend, boyfriend, significant other) who is not his or her spouse in obtaining a VA loan?

    Yes, but the guaranty is based only on the veteran’s portion of the loan. The guaranty cannot cover the nonveteran’s part of the loan. Consult the lender we arrange for you to determine whether they would be willing to accept applications for joint loans of this type. Lenders that are willing to make these types of loans will likely require a down payment to cover risk on the unguaranteed, nonveteran’s portion of the loan. Unlike other loans, the lender must submit joint loans to VA for approval before they are made. Both incomes can be used to qualify for the loan. However, the veteran’s income must be sufficient to repay at least that portion of the loan related to the veteran’s interest in (portion of) the property and the nonveteran’s income must be adequate to cover the rest.
  • I am on active duty and stationed overseas and want to buy a home in my home town. My active military friends who are married can do this with their spouses occupying the property in their place, but VA says I can’t do this with my parents or other relatives occupying on my behalf. Why not?

    Occupancy by the veteran’s spouse satisfies the personal occupancy requirement. There is no provision for occupancy by any other relatives as a substitute for personal occupancy by the veteran.
  • Can I buy a home if I have had a bankruptcy in the last few years?

    The fact you and/or your spouse have been adjudicated bankrupt does not in itself disqualify you from buying a home. The following rules may apply: If the bankruptcy was discharged more than 2 years ago, it may be disregarded. If the bankruptcy was discharged within the last 1 to 2 years, it is probably not possible to determine that you and/or your spouse are a satisfactory credit risk unless both of the following requirements are met: you and/or your spouse have reestablished satisfactory credit, and the bankruptcy was caused by circumstances beyond your and/or your spouses control (such as unemployment, medical bills, etc.) If the bankruptcy was discharged within the past 12 months, it will not generally be possible to determine that you and/or your spouse are satisfactory credit risks.