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VA Guaranteed Home Loans for Veterans
LOAN REPAYMENT TERMS
The maximum VA home loan term is 30 years and 32 days; however, the term ay never be for more than
the remaining economic life of the property as determined by the appraisal.
VA Loan Questions and Answers
1. May a veteran pay off a VA loan before it becomes due?
Yes. A VA loan may be partially or fully paid at any time without penalty. Partial payments
may not be less than I monthly installment or $100, whichever is less.
(Consult your lender.)
2. May the maturity on a VA loan be extended to reduce the monthly payments?
Yes, provided the veteran and the lender want to extend it and the extension provides for
complete repayment of the loan within the maximum period permitted for loans of its
type.
3. If a veteran dies before the loan is paid off, will the VA guaranty pay off the balance of
the loan?
No. The surviving spouse or other coborrower must continue to make the payments. If there is no
coborrower, the loan becomes the obligation of the veteran's estate. Protection against this may
be obtained through mortgage life insurance, which must be purchased from private
insurance sources.
4. Will the veteran's payments always be paid to the same company?
No. It is common practice in the mortgage lending industry to sell mortgages, often before the
first payment is even due. If your loan is sold, you may find that you sent your first payment
to the wrong place and the new holder of your loan may send you an overdue notice. Even though
you know you made the payment, and is is up to the two lenders to get it straightened out, do
not ignore the notice. (Most lenders will notify the veteran if the loan is sold and help
straighten out any problems.)
5. Does having a VA loan limit a veteran's right or ability to sell the property?
No. A veteran may sell the property to a veteran or non veteran at any time. However, if the
loan was closed after March 1,1988, and it will be assumed, the qualifications of the assumer
must be reviewed and approved by the lender or VA.
6. When a veteran sells the property to someone who will assume the existing VA loan, is the
veteran released automatically from personal liability for repayment of the loan?
No. If the loan was closed after March 1, 1988, the lender or VA must be notified and requested
to approve the assumer and grant the veteran release from liability. If the loan was closed prior
to March 1, 1988, the loan may be assumed without approval from VA or the lender. However, the
veteran is strongly urged to request a release of liability from VA.
7. If a loan closed prior to March 1,1988 can be assumed without VA's approvals why should a
veteran be concerned about requesting and obtaining a release from personal liability?
If a veteran does not obtain a release of liability, and VA suffers a loss on account of a
default by the assumer or some future assumer, a debt may be established against the veteran.
Also, strenuous collection efforts will be made against the veteran if a debt is
established.
8. How may a veteran obtain a release of liability from VA?
By having the buyer assume all of the veteran's liabilities on the VA loan, and by having VA or the
loan holder approve the buyer and the assumption agreement. (If the VA loan closed prior to March 1,1988,
the application forms for a release of liability must be requested from the VA office that guaranteed
the loan. If the VA loan closed on or after March 1,1988, then the application forms must be
requested from the lender to whom the payments are made.)
FREQUENTLY ASKED QUESTION # 24 [ -more VA Loan questions- ]
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Q: VA Fees Part 2 - Who is exempt from paying the VA funding fee?
A: While there is a funding fee for a VA home loan, some people are exempt from paying. If you are a veteran getting disability compensation for service-related medical issues, or are entitled to get compensation if you aren't drawing retirement pay, you are exempt from the VA funding fee for your VA home loan. Also, surviving spouses of those who died in the service, or from service related disabilities are also exempt. It doesn't matter in this case whether the spouse has any of their own entitlements. Remember that the VA has the last word on who is exempt, and some issues may be dealt with on a case-by-case basis. If you have any doubts, ask your local VA rep to review your service records (or your spouse's records) and get a determination from the VA.
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Remember, the VA does not make home loans. They insure the loans that we can assist you in getting.
Let us help you get a VA insured mortgage loan at the lowest possible rates.
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