Page 14 - The Panozzo Team - VA Home Loan Guide
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WHAT IS THE VA HOME LOAN GUARANTY? (CONT.)





            -   A  Veteran  applying  for  a  home  loan  in  a  community  property  state  and  the
              spouse will not be on the loan, the spouse’s credit report must still be pulled
              to ensure. There’s no significant financial burden to the Veteran. (These debts can
              be offset by the Spouse’s income).

            -   As a lender we are not looking at the total debt, we are taking into account the total
              monthly payments.
            -   Student loan payments and credit card payments are only calculated of the total
              monthly obligation, not the total debt. (VA will let you omit this debt if it is greater
              than 12 months)

            -   Child Care – Child care is looked at as a debt on VA loans, so this can disqualify a
              Veteran if they have a large monthly obligation for child care.

            *THE BIGGEST KILLER OF VA HOME LOANS IS DELINQUENT FEDERAL DEBT. IF A VETERAN
            HAS DEFAULTED ON A FEDERAL DEBT SUCH AS STUDENT LOAN OR FHA LOAN OR HAS A TAX
            LIEN, THIS CAN RENDER THEM UNABLE TO USE A VA LOAN.


            CLOSING COSTS
            -   Closing costs are typically the same as a Veteran would have on a conventional
              loan, however, since there is no required down payment on a VA loan, the Veteran’s
              closing costs are drastically reduced. Many lenders also waive or reduce lender
              fees for Veterans bringing their cash to close down even more.

            -   Gifts for Closing - This is where the VA differs from other loan types. Whereas FHA
              and Conventional loans require gift funds to come from family members, a Veteran
              can receive gift funds from anyone not involved with the transaction. So if the
              Veteran has a boss, or neighbor, or friend who wants to gift them funds for closing
              they absolutely can.



            •   Closing Costs typically associated with a VA loan
              -  Lender Fees
              -  Discount Points (If Any)
              -  Prepaids/Escrows (homeowner’s insurance, property taxes)
              -  Title Fees
              -  Any inspection fees. Yes, the veteran can pay for their own termite and other
                inspection fees. These are not required to be paid by the seller.
            **Note – The Veteran buyer cannot pay for any real estate related fees such as fees for
            the buyer’s transaction coordinator fees or to make up a percentage of the Realtor’s
            commission.


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