VA Loan - My First Time... Anything to look out for?

CA_Mortgage_Planner · Joined: 06 Jan 2007 Posts: 34 Location: Northern California

I am currently helping a young married couple from Texas purchase their first home, and the man has qualified for a VA Guaranty on his loan. I have never dealt with either an FHA or a VA loan before, and wanted to hear from the experienced pros here before I jump head first into it. Basically what are the differences in originating one of these loans as opposed to a conventional loan? Any words of advice are greatly appreciated!!!

chow · Posted: Sun Mar 04, 2007 8:46 am Post subject:

VA has no monthly MI ! :wink:

It has a financed funding fee. Oh, and don't forget to fill out ALL of the disclosures from VA/HUD at application. Just tell them they are having a practice closing. :lol:

CA_Mortgage_Planner · Joined: 06 Jan 2007 Posts: 34 Location: Northern California

Where can I download the VA/HUD forms? What is the VA fee? I think I remember seeing something about 3%... is that factored in to the loan amount? In other words, if the property is bought for 135, the purchase price would include the VA fee?

chow · Posted: Sun Mar 04, 2007 9:24 pm Post subject:

Your LOS software should have it. If it doesn't offer FHA/VA forms-you're in big time trouble. 90% of the forms people sign for those loans- are done at origination.

What are you using for Loan Origination Software, and who is your lender?

And to follow up on the follow up, the same forms need to be signed again at closing! (with about 20 pcs of paper)

CA_Mortgage_Planner · Joined: 06 Jan 2007 Posts: 34 Location: Northern California

I'm not sure what software the processors use. I work for a broker, Calwide Mortgage & Realty.

What are some good VA approved lenders to price this loan out with?

m2c · Joined: 03 Aug 2005 Posts: 937

26-7 is a very readable document for a government publication. I assume you’ve gone through this although it doesn’t give a summary list of the forms needs. Make sure you understand the funding fee and the implications for your borrower – the free pass of VA disability payments and the trade off with downpayment and funding fee … especially for second usages. Also emphasize that VA will haunt the vet till the end of time if mortgage is foreclosed. Not a bad thing but may not be what the vet is expecting and (s)he should be forewarned. Clarify any prior usages and, better yet, make sure the vet has the Certificate of Eligibility in hand so you know what you’re dealing with. Don't miss the fine print in pricing -- most wholesalers price off FHA with a 1/4 discount point hit (in the fine print, of course)

It's a pretty darn good loan product. Just wish I had more veterans in my market area.

CA_Mortgage_Planner · Joined: 06 Jan 2007 Posts: 34 Location: Northern California

I have not read 26-7.... what is it? Link?

m2c · Joined: 03 Aug 2005 Posts: 937

Now you starting to worry me! http://www.homeloans.va.gov/ls.htm and click on Lenders Handbook. Someone in your office hopefully can provide some guidance. There are some kooky things -- there is VA appraiser assignment and occassionaly the appraiser can be ... well, absurd (varies by county); 2-units really have to be close to standing on their own (not a bad idea real but reflects VA's paternal attitude); jobs right out of service should be a related skill; etc.

CA_Mortgage_Planner · Joined: 06 Jan 2007 Posts: 34 Location: Northern California

Like I said, I have never done a VA loan before... no need to be scared :P Thats why I'm here, to do the research before I get into the details of the loan.

Thanks.

chow · Posted: Mon Mar 05, 2007 9:46 am Post subject:

If you don't have the LOS, how is it you can research?

Here's the forms and don't forget the addendum to the 1003. it's on the same site, 92900A.

http://www.hudclips.org/sub_nonhud/html/nph-brs.cgi?d=FRMS&s1=VA[NO]&op1=AND&SECT1=TXTHLB&SECT5=FRMS&u=./forms.htm&p=1&r=0&f=S

Happy researching. :lol: :wink: :lol:

CA_Mortgage_Planner · Joined: 06 Jan 2007 Posts: 34 Location: Northern California

I can research through you people! I'm sure once I get into the office tomorrow and I say to the processors that I need VA forms they will whip them right up for me... but I wanted to get a head start over the weekend and see if you experienced folk had any words of the wise for someone doing their first VA loan... thats all.