VA Loan – WeVett https://wevett.com Secure Your Next Home with a Military-Focused Lender Mon, 16 Mar 2026 21:59:07 +0000 en-US hourly 1 https://wordpress.org/?v=6.9 https://wevett.com/wp-content/uploads/2023/12/cropped-doublechecks_Square_Blue-1-32x32.png VA Loan – WeVett https://wevett.com 32 32 VA Loan Limits for 2026 and What They Mean for Buyers https://wevett.com/2025/blog/va-loan-limits-for-2026-and-what-they-mean-for-buyers/ Wed, 26 Nov 2025 19:07:19 +0000 https://wevett.com/?p=20292

The end of the year has (almost) arrived, and military and veterans alike are waiting with bated breath for those crucial end-of-year announcements – paychecks, loan limits, BAH rates. And after a very uncertain last two months, it is a relief to finally begin to plan for the future again.

Our first announcement on this list: The Federal Housing Finance Agency (FHFA) has finally released VA loan limits for 2026. If you’re planning on buying a home next year, new loan limits might adjust your VA buying power.

So, the question of the hour: Will loan limits increase in 2026?

How Do VA Loan Limits Work?

First, let’s get familiar with loan limits and why they matter.

Loan limits are the maximum amount a lender will lend to you without needing a down payment. Although this was not the case prior to 2020, loan limits now only apply to buyers with partial entitlement. That means it’s specifically for those who have already used their VA loan once, and that the VA loan is still active or not yet paid off.

Loan limits come into play when you are seeking a subsequent use VA loan (i.e. a second VA loan). The FHFA then sets limits based on the amount of entitlement already used with that first loan. If you have questions on how much entitlement you have, your Certificate of Eligibility (COE) will be a key piece in helping you and your lender determine how much home you can buy at 0% down.

We’ll walk you through the basic math for determining your entitlement, but if you want the easy button option, reach out to our VA loan team for help.

How to Calculate VA Loan Remaining Entitlement

Here’s the quick-and-dirty formula for calculating your remaining VA loan entitlement if you have an outstanding VA loan. (If you have more than one outstanding VA loan, we suggest going straight to a VA specialized lender calculate your remaining entitlement.)

Step One:
Identify the amount of entitlement already charged.

Entitlement Charged = 25 percent of the original loan amount that is still active
(If a prior VA loan is paid off and entitlement restored, that portion becomes zero.)

 

Step Two:
Determine maximum entitlement available in the target county.

Max Entitlement in County = County Conforming Loan Limit × 0.25

 

Step Three:
Remaining Entitlement Formula

Remaining Entitlement = Max Entitlement in County − Entitlement Charged

 

Step Four:
Maximum No-Down-Payment Purchase Power

This circles back because VA guarantees 25 percent of the loan.

Max Zero Down VA Loan Amount = Remaining Entitlement × 4

 

Remaining Entitlement Formula
Remaining Entitlement = 0.25 × (County Loan Limit − Existing VA Loan Balance)

Here’s the formula in practice:

Let’s say you want to buy a house in an area with a County Loan Limit (CLL) of $806,500, and you’ve used $50,000 of your entitlement on an existing loan.

  • $806,500 (CLL) x 0.25 = $201,625
  • Remaining entitlement: $201,625 – $50,000 = $151,642
  • Maximum zero-down loan: $151,642 x 4 = $606,568

This means you could get a loan for $606,568 with zero down, based on the remaining entitlement.

Since loan limits are determined by county, you have to find out your county limit before calculating your max entitlement.

As a reminder, if you are using a VA loan for the first time or have no current loans, there’s no loan limit.

Find out more about understanding your entitlement and COE at VA.gov.

VA Loan Limits for 2026

As it turns out, life just keeps getting more expensive – which means loan limits have to adjust annually to reflect rising (or falling) home prices.

Let’s take a quick look back at last year for comparison. In 2025, for most areas in the United States, the conforming loan limit values for one-unit properties were $806,500, increasing 5.2 percent from 2024, according to the FHFA.

However, some high-cost areas (such as Alaska, Hawaii, Guam, and the U.S. Virgin Islands) may have a higher application loan limit compared to the baseline limit. In areas designated “high-cost counties,” limits can be as high as $1,209,750 (150% of the baseline limit).

Find information about previous loan limits in our 2025 loan limit changes video.

What are the VA loan limits in 2026 for my county?

Alright, now that you are sufficiently learned on all things loan limits, here is what you’ve been scrolling through this article for…

We have compiled a database of all the adjusted loan limits for 2026 by county. You can search using your zip or city (and if you peek at California and Hawaii’s loan limits, we promise we won’t tell). Check out the calculator below!

VA Loan Limits for 2026

Still unsure about how VA loan limits work or how they may apply to you? Check out our resources, or contact one of our va loan experts today.

]]> Buying a Home with a VA Loan? Don’t Fall for These 7 Myths https://wevett.com/2025/blog/loans/va/buying-a-home-with-a-va-loan-dont-fall-for-these-7-myths/ Wed, 27 Aug 2025 14:43:00 +0000 https://wevett.com/?p=19677

The VA loan is one of the most powerful tools available to military families when it comes to buying a home, but it’s also one of the most misunderstood. With so much conflicting information out there, it can be easy to feel confused or even discouraged during the homebuying process.

Let’s clear the air. Here are seven common VA Loan myths , plus the facts that will make your homebuying journey easier.

Myth 1: VA loans are only for Veterans

Fact: You don’t have to be retired or separated from the military to use a VA loan. Active-duty service members, members of the National Guard or reserves, and even certain surviving spouses are eligible. If you’re still in uniform, you can use your VA benefit right now!

Myth 2: You can only use the VA loan once

Fact: You can use your VA loan benefit multiple times, and can even have more than one VA loan at the same time—if you have remaining entitlement. Sold your last home? You can restore your full entitlement and use it again.

Myth 3: VA loans require 0% down

Fact: The VA loan allows for 100% financing, but that doesn’t mean you can’t make a down payment. Choosing to put money down can lower your monthly payment or even help you avoid the VA funding fee if you’re not exempt.

Myth 4: You can’t buy a condo or duplex with a VA loan

Fact: You can buy a condo, duplex, triplex, or even a fourplex, as long as the property meets VA guidelines and you live in one of the units as your primary residence.

Myth 5: VA loans can’t compete in hot housing markets

Fact: VA loans can win in competitive markets. With the right strategy plus a real estate agent and lender who knows how to present your offer, you can stand out to sellers without giving up the protections the VA loan provides. 

Myth 6: VA inspections will sink the deal

Fact: VA inspections don’t exist. However, a VA appraisal which is often mistaken for an inspection, follows common-sense guidelines to ensure the home is safe, sound, and sanitary, not flawless. The goal is to protect you, not make the process harder.

Myth 7: You need perfect credit to qualify

Fact: While most lenders require at least a 620-640 credit score, the VA doesn’t set a minimum credit score. This means there’s flexibility for those with lower scores, especially if you have a strong history in other areas.

At WeVett, we believe military families deserve clarity when choosing the right home loan. The VA loan is one of your most valuable benefits, and misinformation shouldn’t stand in your way.

To learn more about these myths and others, check out our 30-min webinar here. 

Interested in a free, no strings attached quote? Click here.

And if you’re feeling overwhelmed by all the VA loan myths, let’s talk. We’re always available to make sure you have the facts and the support you need.

]]> VA Loan Homebuyer Checklist https://wevett.com/2025/blog/loans/va/va-loan-homebuyer-checklist-2025-guide/ Wed, 13 Aug 2025 18:21:35 +0000 https://wevett.com/?p=19652

Buying your first home with a VA loan can feel overwhelming, but with the right plan, it’s a smooth and rewarding process. This checklist will walk you through every step of the VA home loan process – from confirming eligibility to settling into your new home.

Before You Start the Home Search

 ☐ Confirm VA loan eligibility

Most active duty, reserve, guard, and veterans qualify:

  • Active Duty: 90 consecutive days of service
  • Reserve/Guard: 6 years of service
  • Surviving spouses may also be eligible under certain conditions

Read more about va eligibility specifics.

 

 ☐ Request your Certificate of Eligibility (COE)

  • Your lender can request this online in minutes (if they don’t know how to do this, you’re working with the wrong lender)
  • Proves your VA loan entitlement to lenders

 

 ☐ Check your credit score

  • Aim for 620+ for most lenders – and remember, the VA doesn’t set the standard, it is lender specific
  • You can pull your score annually for free from each of the three credit bureaus at AnnualCreditReport.com 

 

☐ Calculate your housing budget

Find a VA Loan Lender

 ☐ Schedule a consultation call

  • Called the Pre-Check Call, we’ll walk through your eligibility, loan options, and outline the full process

 

☐ Get pre-qualified or pre-approved

  • Pre-qualification: Quick estimate based on the basic information you tell us on the phone
  • Pre-approval: Underwriter reviews your finances in depth; a pre-approval is considered much stronger when making offers

 

☐ Discuss zero-down and VA funding fee exemption

  • Most VA buyers qualify for 0% down with no Private Mortgage Insurance (PMI)
  • Veterans with a disability rating of 10% or greater may be exempt from the VA funding fee

 

☐ Explore dual entitlement if you’re a dual-military couple

 

☐ Gather required documents

  • LES or most recent pay stubs (for you and your partner)
  • Government-issued photo ID
  • Last two months of bank statements
  • Statement of Service (Active Duty) or DD-214 (separated)
  • W-2s or tax returns from the last 2 years (if applicable)
 
 

Start Your Home Search

 ☐ Partner with a military-friendly real estate agent

  • Ask WeVett Realty to connect you with a military PCS expert
  • Make sure you choose someone who understands PCS timelines and military needs

 

 ☐ Stick to your pre-approved price range

  • Avoid surprises or delays during underwriting
  • Remember to factor in closing costs

 

 ☐ Consider long-term lifestyle factors

 

☐ Budget for ongoing expenses

  • Include property taxes, HOA dues, utilities, home maintenance, etc. 
  • Escrow accounts can help spread out these costs

Make an Offer & Close on Your Home

 ☐ Submit an offer through your agent

  • Include your VA loan pre-approval to strengthen your offer
  • Don’t be afraid to negotiate seller concessions or closing costs (your real estate agent is your go-to resource for this!)

 

☐ Schedule a VA appraisal

 

☐ Order a full home inspection

  • Strongly recommended!
  • Helps you spot any major issues with the home before finalizing the deal

 

☐ Lock in your interest rate

  • Rates can fluctuate daily, locking a rate in secures your monthly payment

 

☐ Review loan disclosures and closing details

  • Compare Loan Estimate and Closing Disclosure for accuracy
  • Double-check interest rate, fees, and total costs

 

☐ Sign and close!

  • Bring your ID, review documents, and receive your keys (unless you are closing virtually – your loan officer will explain your specific process if you are unable to close in person)
  • Congratulations, you’re now a homeowner!

After Closing

 ☐ Set up utilities and update your address

 

 ☐ Store all loan documents safely for future refinance opportunities

  • Keep digital and printed copies of the deed, mortgage, and VA paperwork
  • You may need them again for refinancing or future loans

Ask WeVett Home Loans to track your refinance opportunities using the Rate Radar!

 

☐ Know your loan servicer

  • They’ll handle your monthly payments and tax/insurance escrow

Note: Your loan originator is the lender or mortgage professional who helps you secure the VA loan. They guide you through the application, approval, and closing process. Once you close, your loan servicer takes over. The servicer is the company you send your monthly mortgage payments to, and they manage your escrow account for taxes and insurance. Sometimes the loan originator and servicer are the same company, but often your loan will be transferred to a separate servicing company after closing.

 ☐ Start building long-term equity

  • Consider how long you’ll stay and what comes next—live in, rent out, or sell
  • You can use your VA benefit again in the future!
  • Ask us about our 20-Year Client Vision of helping you have a paid for home by military retirement!

VA loans are one of the most powerful benefits you have with zero money down, no PMI, and flexible guidelines. Our mission is to make it easy, fast, and transparent for military families to own a home you love.

 

Questions about the process? Talk with one of our VA loan experts –> 316-669-5272

]]> Maximize VA Home Buying Power as a Dual Military Couple https://wevett.com/2025/blog/loans/va/va-home-loans-dual-military-couples/ Tue, 05 Aug 2025 14:39:00 +0000 https://wevett.com/?p=19623

If you and your partner both bring in a steady paycheck, whether you’re both wearing a military uniform or working full-time jobs, you’re already in a strong position when it comes to buying a home. But the truth is, just having two incomes doesn’t automatically mean you’re getting the most out of your buying power. 

Here’s how to make those dual incomes really work for you:

1. Combine Incomes Strategically to Maximize VA Loan Approval

When lenders assess what you can afford, they’ll look at your combined debt-to-income (DTI) ratio. If one of you has more stable or higher income, you might qualify for better loan terms. Use this to your advantage when shopping for a mortgage option. Make sure you compare VA loans, conventional loans, and other programs based on your unique income blend.

Pro Tip: VA loans often allow a higher DTI ratio than conventional loans, which can be especially helpful for dual military families.

2. Use Dual VA Loan Entitlements to Increase Buying Power

For dual military couples, you may both be eligible for VA loan entitlements. That opens up strategic options, including:

  • Co-borrowing with split entitlement to buy a more expensive home with $0 down
  • Preserving one partner’s VA entitlement for a future home or investment property
  • Using one entitlement while the other rents out a previous VA-financed home

 

Understanding how to structure your VA loan entitlement usage can increase flexibility now and in the future.

3. Budget Based on One Income, Buy Based on Two

Set your budget as if you’re living on one income, or one Basic Allowance for Housing (BAH). This gives you breathing room for any deployment-related income gaps, unexpected PCS orders, or job changes. Then use your combined incomes to qualify for a higher VA loan amount or better home options. Financial stability and more flexibility, yes please.

4. Pay Off Debt Together, Fast

Two incomes = faster debt payoff. Focus on knocking out high-interest debt together, such as credit cards, personal loans, or auto payments before house hunting. Be strategic about this and talk to a VA loan expert about which debts have the most potential to improve your DTI and lead to a better interest rate. 

Pro Tip: Avoid paying off debt right before applying for a mortgage. Drastic changes in your credit profile can sometimes cause temporary dips in your credit score.

5. Buy with PCS Moves in Mind: Long-Term VA Loan Strategy

Think beyond your current duty station. If you’re likely to PCS in a few years, consider properties in strong rental markets near major bases. Dual incomes can support holding the property as a rental while purchasing your next home with VA benefits.

Pro Tip: Not all VA lenders are experienced in helping military families plan for future rentals or multiple VA loans. Choose a lender who understands your lifestyle.

Dual Income, a Powerful Advantage for Military Couples

At the end of the day, having two incomes is a powerful advantage, if you know how to use it. Be strategic, do your homework, and make decisions that support your lifestyle now and your financial future later.

Whether you’re building roots or building equity, you’ve got options and we have the tools to help make it happen. Give our VA loan experts a call!

]]> Building Good Credit as a Military Member https://wevett.com/2025/blog/article/building-good-credit-as-a-military-member/ Tue, 06 May 2025 21:43:53 +0000 https://wevett.com/?p=18533

Starting your military career is a big deal—and so is building your credit from day one. Whether you’re a fresh butter bar or just starting your enlistment, having strong credit opens doors to better loans (including the VA Loan), smoother rentals, and more financial freedom.

Good news: You don’t need to be a finance pro to get started. Let’s break down how to build credit with and without a credit card, tailored specifically for military life.

 

Build Credit WITH a Credit Card

1. Start with a Secured Card

If you’re brand new to credit, this is your safest bet. You’ll put down a small deposit (usually $200–$500), and that becomes your credit limit. Use it for small purchases and pay in full each month.

Pro tip: This is just the training wheels for your credit score. Use it right, and you’ll graduate to a regular card in no time.

2. Use a Military-Friendly Credit Card

Check out credit cards from banks like USAA, Navy Federal, or PenFed. They’re made with military members in mind—offering low rates, zero foreign transaction fees, and perks through the Servicemembers Civil Relief Act (SCRA).

3. Become an Authorized User

Do you have a parent or trusted family member with a solid credit history? Ask to be added to one of their cards. You don’t even have to use it—just being listed can boost your score over time.

4. Keep It Smart & Simple

Use less than 30% of your credit limit

Pay on time (set up autopay!)

Don’t open too many cards at once

 

Build Credit WITHOUT a Credit Card

1. Try a Credit Builder Loan

Certain banks offer small loans. The money sits in a savings account while you make fixed monthly payments. Once it’s paid off, the money is yours—and your credit score gets a boost.

2. Report Your Rent & Utilities

Tools like Experian Boost let you report rent, phone, and utility payments to the credit bureaus. This is an easy win if you’re already paying bills on time. Check to see if your property manager already works with a credit reporting tool. 

3. Use Military Auto Loans Wisely

Need a car? Many lenders cater to military members with limited credit. Make sure you shop around, get a fair rate, and never miss a payment.

4. Student Loans Count Too

If you have them, treat them like gold. Every on-time payment builds credit and shows you’re financially responsible! 

 

Use Your Military Perks

SCRA = Lower Interest + More Protection

Under the Servicemembers Civil Relief Act, pre-service loans can’t charge you more than 6% interest while on active duty.

MLA = Safer Lending

The Military Lending Act protects you from high-interest loans and hidden fees. Big win for your wallet.

Get Free Credit Monitoring

Active-duty members can sign up for free credit monitoring from all three major credit bureaus. Stay on top of your credit—and catch any errors or fraud fast.

 

Final Thoughts

Building credit as a young military member doesn’t have to be complicated. Whether you go the credit card route or opt for alternative tools, the key is consistency. Use what you’ve got, take advantage of military-specific benefits, and stay disciplined.

Your future self (and your future mortgage lender) will thank you!

]]> Grow Your Passive Income with the VA Loan https://wevett.com/2024/blog/loans/va/grow-your-passive-income-with-the-va-loan/ Thu, 06 Jun 2024 19:13:41 +0000 https://wevett.com/?p=13288

You’ve likely heard it said, buy rental properties while in the military, build your passive income and retire to the high life.

What does that actually look like in practice though? Is that a pipe dream or can it actually happen?

Quick answer, YES! It can actually happen, but only if you take the time to understand investment properties, what makes them profitable and what they will require of you to manage them effectively.

Did we mention, this can all be done using the VA loan too? More on that later.

What Makes a Successful Investment Property

Location

The location of your rental property is imperative. Choose areas with strong rental demand and the potential for property value appreciation.

For example, certain areas in Florida, Arizona, and Texas have recently seen a boom in property values and population growth. In these areas, rental demand is high and income is increasing which is good news for property managers.

Take note of major employers, population trends and school districts. If the major employers are stable, the population is trending up and the school districts are desirable, the area is likely going to be a good candidate for a rental property.

 

Positive Cash Flow

Ensure that the rental income from the property exceeds the expenses (ie. mortgage, taxes, management, maintenance, etc.)

After that, the amount of necessary cash flow depends on your end goal. If the goal is to hold the property long-term for passive income purposes, then you want the property to have substantial monthly cash flow. If your goal is to only hold long enough for price appreciation to kick in, then cash flow just needs to cover expenses.

 

Property Condition

Lastly, make sure the homes you choose are in good condition or have the potential for renovation to increase value.

Nothing tanks a rental property’s profitability more than unexpected major expenses. Four major items to look out for are roof, siding, HVAC, and windows. Those things can turn into huge costs that cut deep into rental profits.

Analyzing Investment Opportunities

Tactically, what is the best way to analyze an opportunity to see if it’s going to be a good investment?

We suggest using a pro forma analysis. Here is an example of a pro forma that you can use to determine if buying a specific property is a wise investment.

Download a Blank Pro Forma

Buying Rentals with the VA Loan

You cannot buy an investment property with the VA loan. There, we said it.

However, you can buy a primary residence that also serves as an investment. The key is you have to plan on living in the property for the VA to approve the loan.

Three ways we see military members use their VA loan to buy rentals:

  1. Single Family Residence: Buy a home and live in it, rent it out when you PCS
  2. House Hacking: Buy a home, rent out the extra bedrooms
  3. Multi-Unit Properties: Buy a 2, 3 or 4-unit property, live in one unit and rent out the others

VA loan benefits still apply in all of the scenarios above, including low or no down payment, competitive interest rates and no private mortgage insurance.

Buying your second property? Keep in mind that loan limits will begin to kick in. So check your eligibility and check those limits prior to making any offers on a home.

If you are going to use the VA loan, you want to work with someone who gets it. Roughly 10% of all home loans out there are VA loans, and even less are active duty members using the loans. Using a reputable and knowledgeable VA lender can make a world of difference!

A side note: If you use a VA loan, you will have the option to refinance your rental at primary residence rates using the VA Interest Rate Reduction Refinance Loan (VA IRRRL). Huge potential for future savings!

Instantly check your VA IRRRL eligibility >

Setting Financial Goals

What is your “why” behind wanting to build long term wealth?

You have to define your financial objectives with your family. Whether it is passive income, wealth building, or retirement planning, establish clear goals for your real estate investments.

If you are a person who does not do well with negative cash flow, think about the properties you are purchasing and what the cash flow looks like over time. Set yourself up for success with things you know you can handle and things that make you comfortable!

Consider your risk tolerance and timelines when selecting investment properties.

Regularly review and adjust your investment strategy as your circumstances and goals evolve. If you are married, make sure you are on the same page with investing. Take the time and work with your spouse.

The best investment strategies come when you work as a team.

Building Your Real Estate Investment Team

When looking at investments, you are going to need a professional team helping you reach your goals. Ideally, you will have a real estate agent, lender, property manager, and contractors who understand your unique needs and constraints as a military member.

Key Team Members

  • Real estate agent
  • Lender
  • Property manager
  • Contractors

Leverage your military network to find trusted professionals who have a proven track record with real estate investments. Work smarter and not harder. Let a seasoned professional help you!

As you build your investment portfolio, be sure to keep open and transparent communication with all parties.

Maximizing Returns and Property Value

Be sure to think about value-add strategies to increase rental income and property appreciation.

Renovations

Are there cost-effective renovations that you can do to elevate the property, allowing you to increase rent? Don’t just dive into a renovation because it seems like a good idea. Evaluate the cost of materials, labor and time and compare that to future potential gains before doing a large-scale renovation.

Upgrades

Are there a few minor upgrades you can make to the property to make it more desirable? Landscaping, paint, light fixtures, etc. can all be small improvements that will help your property to rent easier and possibly even at a higher rate.

Reconsider Best-Use

Is your property being used at its highest potential? An example of this would be a single family home that is currently being used at a rental, but would produce a better return if it was sold. If the rental returns don’t cover or barely cover expenses, look instead at selling the home, possibly earning appreciation on the sale, and reinvesting the money in a property that makes better returns as a rental.

 

Stay proactive with property maintenance and repairs to preserve the property’s value and attract quality tenants.

It is also smart to regularly review rental rates and market conditions to ensure you are charging a competitive amount and maximizing your returns.

Exit Strategies for Real Estate Investments

So what happens when your circumstances change or the rental property just isn’t working out in its current state? Well, you have a few different options.

Sell the Property

Get it listed with a high-quality real estate agent who is well-versed in the type of property you are selling. Ideally, they will help you get the highest price for the home and reduce your headaches in the sales process.

Hopefully you’re in a good market and your home has appreciated. If not though and selling the home will cost you, just remember that it is better to lose money in the short term rather than lose your sanity and drain your funds over an extended period of time. Cut your losses and get out of the rental game or start fresh somewhere else.

Refinance

If a lower monthly mortgage payment will tip your property into profitability, refinance might be a good option here. If you used a VA loan, the VA Interest Rate Reduction Refinance loan is an excellent option for a simple, streamlined refinance.

Transition to a Long-Term Rental

Is your property an Airbnb or VRBO? Did it work well for you when you were physically located in the area, but doesn’t make sense now that you’ve moved? Transitioning it to a long-term rental might be the next step. Long-term rentals are simpler to self-manage or you can hire it out to a property management company.

Transition to a Short-Term Rental

On the other hand, if you are in a market that has a high demand for short-term rentals, transitioning your long-term rental could bring in more cash flow. Research rents, seasonal demand and management companies before making the swap.

Last thing, don’t forget to factor in taxes and capital gains whichever route you choose to go. A tax advisor or financial planner is a great resource to help you examine costs, taxes and other financial implications for your specific situation.

If you are looking for a VA loan or would like more information on anything mentioned above, WeVett will gladly go through resources with you and help build your investment portfolio.

Get started on your VA loan here or visit our education page for additional resources.

]]> VA Loan Minimum Property Requirements https://wevett.com/2024/blog/loans/va/va-loan-minimum-property-requirements/ Tue, 30 Apr 2024 15:58:19 +0000 https://wevett.com/?p=12994

When you purchase a home using the VA Home Loan, the VA uses what they call Minimum Property Requirements (MPR’s) to ensure the home qualifies. It is sometimes also referred to as VA Loan Inspection Requirements.

The VA’s goal by enforcing MPRs is to make sure military and Veterans have safe and functional homes to live in. This decreases the likelihood that a service member will be taken advantage of, especially since many active-duty military may not have the benefit of local real estate knowledge before their purchase.

A VA-assigned appraiser will check the property value and ensure it complies with the laundry list of VA loan appraisal requirements. 

We’ve summarized them all for you below!

What is included on the VA Minimum Property Requirements (MPRs) list?

Topic Name

Simple Breakdown

Marketable Real Estate

Must be a residential dwelling that would appeal to most buyers

Space Requirements

Must be big enough for occupants to use comfortably and includes all needed facilities

Access

Must be safely accessible year-round by foot or vehicle in all-weather conditions

Encroachments

Any encroachments on property line must be resolved before loan is approved

Drainage & Topography

Waste and water must flow off without ponding, no risk of mudslides, falling rocks, or avalanches 

Geological or Soil Instability, Subsidence, and Sinkholes

Must report any potential instability like cracks, sinkholes, foundation damage, or settlement problems 

Special Flood Hazard Area

Properties in SFHA must be covered by flood insurance; properties that flood regularly are not eligible

Coastal Barrier Resource System

Properties located in CBRS are not eligible

Non-Residential Use

Home must be used as primary residence and comply with local zoning requirements 

Zoning

Must comply with all applicable zoning ordinances

Local Housing & Planning Authority Code Enforcement

If repairs are needed to bring property up to code, appraisal must be made subject to these repairs. 

Utilities

Must be safe and move-in ready with access to safe drinking water, sewer, gas, and electricity

Water Supply & Sanitary Facilities

Must have continuous supply of safe water for drinking and hot water for bathing

Individual Water Supply

Must be sufficient and safe for human consumption

Individual Sewage Disposal

Must be adequate and not endanger public health

Shared Wells & Sewage Disposal

Even if shared by 2 or more properties, it must be safe for human consumption and supply all properties equally 

Community Water Supply & Sewage Disposal

Must report that property is on community water/sewage and water/sewage must be safe and adequately supply all properties

Hazards

Must be free of hazards that would prevent occupant from enjoying their property

Defective Conditions

Any damage or issue that could affect the property’s value must be remediated before the VA loan is approved

Mechanical Systems

Must be safe and in good working condition

Heating

Must be able to maintain a temperature of at least 50 degrees in all areas with plumbing

Leased Mechanical Systems & Equipment

Any leased equipment such as fuel storage, solar panels, wind systems, etc. must be included in the appraisal report, but will not affect the home value

Alternative Energy Equipment

As long as equipment is not leased, their value and marketability are included in the VA appraisal report 

Roof

Must be prevent entrance of moisture with no visible defects from the inside such as noticeable leaks

Attics

If readily accessible, condition must be reported

Crawl Space

Must contain adequate ventilation and an absence of excess moisture. 

Basements

Must inspect the basement for any signs of dampness or structural issues that may affect the health and safety of the occupants

Swimming Pool

Must determine its condition and effect on property value. Damages will be subject to repairs. 

Burglar Bars

Must be equipped with quick-release mechanisms on at least one window per room unless there is an exterior door from the bedroom

Lead-Based Paint

Any chipping paint on the exterior of the house must be remediated. If built before 1978, lead-based paint guidelines must be followed.

Wood Destroying Insects/Fungus/Dry Rot

Any evidence of issues must be reported and any damage must be fixed; in areas with termites, a termite inspection is required

Radon Gas

Builder must certify that radon-resistant construction techniques were used according to local codes for new construction properties

Potential Environmental Problems

Any possible sources of contamination on the property must follow all local regulations and requirements

Stationary Storage Tanks

Appraiser must report presence of any 1000+ gallon storage tanks containing flammable or explosive material if located within 300-feet of the property and determine possible effect on property value

Mineral, Oil, and Gas Reservations & Leases

Must consider any property rights and adverse influence on neighboring properties

High Voltage Electric Transmission Lines

No part of the residential dwelling may be located within a high-voltage electric transmission line easement 

High-Pressure Gas & Liquid Petroleum Pipelines

No part of the residential dwelling may be located within high-pressure gas or liquid petroleum pipeline easement

Properties Near Airport

Appraiser must evaluate the impact of noise and light pollution on the property’s value. Borrower must acknowledge location of the property if in a Clear Zone or accident protection zone

Are you looking for a detailed explanation of the VA’s minimum property requirements? Read the full list of VA MPRs here.

You’re still reading? Good. That list can seem a bit overwhelming. Don’t worry though, the VA appraisal is a good thing – it’s helping you determine whether or not the home will be a blessing in the long-run.

What happens if the home does not meet the VA requirements?

The VA will not approve a loan on a property that does not comply with the VA MPRs.

However, if the Seller agrees to repairs, the home can be appraised again to verify that it now meets requirements. Once the repairs are made, an appraisal can be rescheduled.

Difference between a VA Appraisal and a Home Inspection

Home inspections are not the same as appraisals. An appraisal is verifying value, while an inspection is verifying the condition of the home.

The VA Appraisal IS NOT a replacement for a whole home inspection. Although it is more extensive than a traditional appraisal, it is not in-depth enough to cover all of the issues that a home might contain.

The VA does not require homebuyers to get an inspection, however, the last thing you want is to decline the inspection thinking the appraisal covered it all, only to find out later that a latent or hidden structural issue is going to cost you $50,000+ to fix.

We highly recommend that you don’t skip the inspection, the $300-$500 you spend is worth the extra security blanket.

Short Appraisal Remedies: Tidewater and Reconsideration of Value

One more note on VA appraisals – if the purchase price is in question or the property under appraises, the appraiser has the option to speak to your lender to find support for the home’s value. This is a major benefit that only the VA program offers!

This can be done through two methods:

Tidewater Initiative

Reconsideration of Value

To learn more about both of these, check out our two-part series on VA Short Appraisals.

Still have questions? Let’s discuss! Give us a call at 316-669-5272 or email at loans@wevett.com

]]> Four Main Home Loan Types https://wevett.com/2024/blog/loans/four-main-home-loan-types/ Fri, 29 Mar 2024 03:55:01 +0000 https://wevett.com/?p=12530

There is a wide variety when it comes to home loan options and how you can structure your mortgage. For the majority of people, however, there are four main types of home loans to become familiar with before deciding which financing route to choose for your home purchase.

The four main home loan types are: Conventional Loan, FHA Loan, VA Loan, and USDA Loan.

Which one is best for you? What are the pros and cons? Check them out below.

 

Conventional Home Loan

Conventional loans are the most popular home loan because there are fewer required fees and fewer rules to qualify. Unlike other loan types, they are not backed by the federal government. Fannie Mae and Freddie Mac usually buy and guarantee these loans. Conventional loans have a wider range of pay off periods, but typically have a 30-year or 15-year duration term.

PROS

  • The majority of home buyers are eligible
  • More options and flexibility with how the loan is structured
  • Higher loan limits
  • Limited restrictions on property type

CONS

  • Credit score has to be 620 or higher
  • Requires anywhere from a 3% to a 20% down payment
  • Higher interest rates

 

FHA Home Loan

Federal Housing Administration (FHA) loans have made homeownership in the United States more accessible by lowering the down payment amount and credit score requirements. For this reason, FHA loans are popular among first time home buyers. FHA loans are backed by the federal government through the Federal Housing Administration.

PROS

  • Many lenders only require a credit score of 500 or higher to qualify
  • Down payment can be as little as 3.5%
  • Potentially an option even if you have had a bankruptcy or other financial issue on record

CONS

  • Requires Mortgage Insurance Premiums (MIP) for the life of the loan
  • Lower limits on the amount you can borrow
  • Strict property standards and occupancy requirements

 

VA Loan (Our Favorite!)

Veterans Affairs (VA) Loans are exclusively for Active Duty and former military members and their families. You must have served in the U.S. military for 90 days of Active Duty during war time or 181 days during peace-time, or a widow of a military member that has not remarried. VA Loans are also backed by the federal government which helps lenders reduce risk and lower interest rates for borrowers.

PROS

  • No down payment required
  • No PMI premiums
  • Interest rates usually lower than other loan types
  • No fees for paying the loan off early
  • No minimum credit score requirement by the VA, many lenders will accept lower credit scores

CONS

  • Must meet VA loan requirements to be eligible
  • Requires a VA funding fee (this can be reduced via the down payment and even eliminated for certain borrowers)
  • Strict property standards and occupancy requirements

 

USDA Loan

Despite the name, U.S. Department of Agriculture (USDA) loans are not just for farmers. They are intended for rural development. You must meet income-eligibility, use the home as your primary residence, and be a U.S. citizen. Like FHA and VA, they are also backed by the federal government.

PROS

  • No down payment required
  • Competitive interest rates
  • Flexible credit score guidelines
  • No fees for paying the loan off early

CONS

  • Upfront guarantee fee plus an annual fee
  • Home must be in a designated rural area
  • Strict property standards and occupancy requirements
  • Income limits, many higher income borrowers will not be eligible
  • Longer underwriting periods may extend closing timelines

 

Have questions over any of these loan types or need help deciding which loan is right for your situation? Contact our team for a free consultation!

]]> How to Transfer a VA Home Loan to Get a Better Interest Rate https://wevett.com/2023/blog/transfer-a-va-home-loan/ Wed, 07 Jun 2023 16:26:11 +0000 https://wevetthomeloans.com/?p=4109

Remember those dreamy years when mortgage interest rates were happily dancing around at the 2% club?

Buying a house with the VA loan was like waltzing into a mansion with a bag of cash and a martini while waving goodbye to your old, fixer-upper from that last PCS. (Never mind that you had to battle your way to the front door through a frenzy of other homebuyers.)

Those were the days.

And now…we have these days. Where 5% is amazing and 4% is unheard of!

 

As a military home buyer, how do you approach this new, expensive real estate landscape?

There are a lot of options which we will cover in the next few months, but let’s first tackle one of the most interesting topics of the moment: How to Transfer a VA Loan.

Did you know, a VA Home Loan can be transferred to someone else?

As in, homeowner #1 locked in a low rate back in 2020 and now homeowner #2 would like to buy the house and also keep that same rate by assuming homeowner #1’s loan.

What!? Yes, it’s possible!

VA loans are transferable as long as your lender allows it. It is called a “loan assumption.”

What is a VA Loan Assumption?

A VA loan assumption is when a buyer assumes financial responsibility of the seller’s VA loan.

The lender will verify that the buyer of the home meets all VA loan requirements and could qualify for a VA loan on their own.

Fun fact: The person assuming the VA loan does not have to be a qualified Veteran or Servicemember, as long as they meet the lender’s financial VA loan requirements.

The buyer must meet all lender credit and income requirements, must assume all mortgage obligations, and pay the VA funding fee unless otherwise exempt.

The VA funding fee on a VA loan assumption is 0.5% of the remaining loan balance.

How do I find an assumable VA loan?

The best way to find an assumable VA loan is to work with a real estate agent. Our affiliate, WeVett Realty can help with that!

The MLS (Multiple Listing Service), which is used by REALTORs, can show homes with assumable loans.

Make sure you communicate with your agent that you are eligible for a VA home loan and would like to assume one, if possible.

You can sometimes also find other military who are open to transferring a va loan in the local facebook group or spouse group for your specific duty station.

What’s the Catch?

There’s a few liabilities when transferring a VA home loan.

VA homeowners must ask for a “release of liability” form from their lender, or their credit could take a significant hit if the assumer of the loan makes late payments or defaults.

Another catch is that if the person assuming the VA loan does not have enough VA entitlement, the seller’s entitlement will be tied up until the loan is paid in full.

What does that mean? If the buyer only has $300k in VA loan entitlement, but the house they are purchasing is $400k, they do not have enough loan entitlement to assume the loan on their own. The seller’s VA loan entitlement would stay tied up, meaning they likely could not purchase another home with a VA loan until the home is paid off.

The seller can ask the buyer to formally substitute their entitlement through a “Substitution of Entitlement” with the VA.

The ins and outs of how to transfer a VA Loan can be a bit tricky, but the end result can be totally worth it – ie. dollars saved, PCSs salvaged, and military homeownership lives on to fight another day. Thanks Assumable VA Loans!

If you’re looking to transfer a VA home loan or have more questions about the process, reach out to us at 316-669-5272 or submit a form here.

]]> 3 Ways to Level Up Your VA Loan Offer https://wevett.com/2020/blog/loans/va/3-ways-to-level-up-your-va-loan-offer/ Thu, 01 Oct 2020 16:48:16 +0000 http://6001d467e9cb9f0017c5ab54

You don’t always have to offer the highest price to win a bidding war on a house. Using a few simple tricks, you can turn your offer into the seller’s holy grail.

POV: It’s 2020 – average days on market are going down – this means houses across the nation are selling lightning fast. Buyers are hard-pressed to get homes and competition is high.

To add to this bleak buyer’s landscape, buying with a VA home loan in a competitive market can be like running uphill with an open parachute.

BUT all is not lost.
There are three things you can do to help your offer win out.

1. Write a Letter

Some say the written word is dead, but in the world of real estate, penmanship is making a comeback! Writing a personal letter to the seller will help them to connect with you on a deeper level, making them more willing to choose your offer over others. After all, we as humans typically make decisions based off of who and what we like – so share your story, be likeable!

2. Get Your Lender Involved

Gain another leg up by getting your lender involved. Whether local or national, connect with your mortgage originator and have them personally call the listing agent to reassure them that you are a strong financial candidate for the home. This extra step will verify that you can actually buy the home and show that your lender is willing to get involved and be proactive through-out the process. (Lending delays are a common issue when it comes to closing on a home.)

3. Appraisal Gap Coverage

Many sellers are cautious to accept a VA loan because they are concerned it might appraise differently than a traditional loan. To circumvent this possibility, if your state allows, offer the seller an appraisal gap coverage. This means that even if the home under-appraises, you are willing to make up a portion or all of the gap in price. This gives the seller more surety that the appraisal process won’t kill the deal.

There are many interesting and creative ways to sweeten up your offer, and each situation will require a unique approach. So as always, ask your local agent for their advice when it comes to crafting your offer. They might even throw out better suggestions that will ultimately get your offer the time of day!

If you have additional questions about our trifecta of VA loan offer tricks – contact us! We are always available to shoot the breeze about real estate. And if you are in need of a real estate agent, our sister company, WeVett Realty will research and interview to find you the perfect match – just say the word!

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