Since the end of World War II, over 21 million veterans have bought homes with the aid of VA loans. The great majority of these veterans have bought soundly constructed homes and are now making regular payments on their mortgages as satisfied homeowners.
VA guarantees part of your loan – which helps you to get a VA loan featuring:
VA requires compliance inspections in most cases on proposed new construction to see that the house:
VA will try to assist you in getting your builder to correct any defects about which you may have valid complaints.
VA does not have the legal authority to:
VA cannot compel a builder to remedy defects in construction or otherwise compel the builder to live up to a contract with you. VA cannot guarantee that you will be completely satisfied with the house, or that you can resell it at the price you paid.
VA cannot guarantee that you are making a good investment. That is a decision which only you can make.
VA does not guarantee the CONDITION of the house which you are buying, whether it is new or previously occupied. VA guarantees only the LOAN. You may talk to many people when you are in the process of buying a house.
Particularly with a previously occupied house, you may pick up the impression along the way that you need not be overly concerned about any needed repairs or hidden defects since VA will be sure to find them and require them to be repaired. This is NOT TRUE! In every case, ultimately, it is your responsibility to be an informed buyer and to assure yourself that what you are buying is satisfactory to you in all respects. Remember, VA guarantees only the loan - NOT the condition of the house.
If you have any doubts about the condition of the house which you are buying, it is in your best interest to seek expert advice before you legally commit yourself in a purchase agreement. Particularly with a previously occupied house, most sellers and their real estate agents are willing to permit you, at your expense, to arrange for an inspection by a qualified residential inspection service. Also, most sellers and agents are willing to negotiate with you concerning what repairs are to be included in the purchase agreement. Steps of this kind can prevent many later problems, disagreements, and major disappointments.
The application process for VA financing is no different from any other type of loan. In fact, the VA application form is the same as that used for HUD/FHA and conventional loans. The mortgage lender verifies the applicant's income and assets, and obtains a credit report to see that other obligations are being paid on time. If all is well and the appraised value of the property is enough to cover the loan needed, the lender, in most instances, can then close the loan under VA's automatic procedure.
To obtain a VA loan, the law requires that:
Being eligible for a VA loan is not the same thing as being able to get a VA loan. Both the VA and lenders have requirements you’ll need to hit in order to obtain home financing. Talk with a lender in more detail or move on to the next section in the VA Homebuying Process: VA Loan Prequalification