Real Estate 101

Real Estate 101 - VA Loan


	What is a VA loan?
	What process needs to be followed to obtain a VA loan?
	What is a Certificate of Eligibility?
	What is a Certificate of Reasonable Value (CRV)?
	What is VA (Department of Veterans Affairs)?

What is a VA loan?
A VA loan is a low-cost mortgage that is guaranteed by Department of Veterans Affairs (VA) and is available for the U.S. military veterans, persons on active military duty, certain guard & reserve members, and certain un-remarried surviving spouses of veterans. VA loans can be obtained for purchasing or building a primary residence, refinancing an existing loan or for home improvement. Most of the VA loans do not need borrowers to put any down payment. Closing costs may include title insurance fees, hazard insurance, prepaid taxes, loan origination fee and a VA funding fee (usually ½% to 3% of loan amount). For more information on eligibility and other requirements for VA loans, you can call 1-800-827-1000 or a regional office of Department of Veterans Affairs or click on Department of Veterans Affairs.
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What process needs to be followed to obtain a VA loan?
Steps in obtaining a VA loan: Apply to VA for certificate of eligibility. Find a property to purchase as a primary residence. Find a lender that agrees to make a VA loan. Provide the lender your certificate of eligibility. Lender will order an appraisal from VA. VA will determine the value of the property and issue a Certificate of Reasonable Value. Most of the lenders will close the loan without formal review by VA.
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What is a Certificate of Eligibility?
A certificate of eligibility is a document issued by Department of Veterans Affairs (VA) to certify a person’s eligibility to obtain a VA loan. An application for obtaining this certificate is available at a regional VA office, a county veteran service office, lenders or on VA Homepage at www.va.gov. A proof of military service must be attached to the completed application.
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What is a Certificate of Reasonable Value (CRV)?
Certificate of reasonable value is a document issued by the Department of Veterans Affairs (VA) to confirm the maximum property value and loan amount that can be lent on a VA mortgage.
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What is VA (Department of Veterans Affairs)?
VA is a federal government agency that guarantees mortgages obtained by U.S. military veterans, persons on active military duty, certain guard & reserve members, and certain un-remarried surviving spouses of veterans.
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