There are a lot of details that go into getting a VA loan. Because of that, there are a lot of questions that veterans have. Below are the most frequently asked questions about the subject of VA loan financing.
Q: What is a LAPP lender?
L.A.P.P. stands for Lender Appraisal Processing Program. What this means is VA has authorized this type of lender to receive the appraisal directly from the appraiser to issue the NOV (Notice of Value). This speeds up your loan process tremendously as the lender does not have to wait for VA to do so. If not a LAPP lender, you can expect the appraisal process to take up to 2 weeks or more, which could jeopardize your loan closing on time and breach the purchase contract or even cause you to lose your rate lock. Always check if your lender is a LAPP lender. If they do not know, that might be a red flag.
Q: How long does the VA loan process take?
With the ACE technology and LAPP certification, the process should take no more than 30 days to complete your VA loan.
Q: How do I get my COE?
VA has created an automated online service where your lender can go to acquire your Certificate of Eligibility for you. However, if you would like to obtain it yourself, you will need to fill out form 26-1880 and mail it to the VA Eligibility center in Atlanta, GA. If you fill out an inquiry form, it can be ordered right away for you and generally have a response back in minutes.
Q: Is the surviving spouse of a deceased veteran eligible for the home loan benefit?
The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit.
Q: Are the children of a veteran eligible for the home loan benefit?
No, the children of an eligible veteran are not eligible for the VA home loan benefit.
Q: I just got divorced and the house we purchased was awarded to my ex-spouse. Can I use my VA eligibility?
When the property is awarded to the Veteran’s ex-spouse as a result of the divorce, entitlement cannot be restored unless the spouse refinances the property and/or pays off the VA loan in full or the ex-spouse is a veteran who substitutes their entitlement.
Q: I filed Bankruptcy. Can I still use my VA eligibility?
Veterans are allowed use their VA eligibility to purchase another home. There is a two year waiting period after the “discharge date” of your bankruptcy.
Q: I’m stationed overseas. Can I purchase a home using my VA eligibility?
Veterans are allowed to purchase a home without initially occupying the home as long as they have a spouse that can occupy it. VA has a personal occupancy rule that can be satisfied by the veteran or spouse. No other relatives or friends can occupy to satisfy the rule.
Q: I sold the property I obtained with my prior VA home loan on an assumption. Why can’t I get my entitlement restored to purchase a new home?
The only way to get your entitlement restored is if the person that assumed your previous VA loan is also an eligible veteran and is willing to substitute his or her entitlement for that of your original entitlement. Otherwise you cannot have your entitlement restored until that person has paid off the loan.
Q: I currently have a house with a VA loan. Can I purchase another house with a VA loan?
- The new VA loan must be over $144,000
- The loan must meet the VA entitlement calculations (a VA loan Specialist can assist you with this calculation)
- The lender must be willing to finance 2nd Tier Entitlement loans
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