unit 19 va loans-more
What qualifying ratios are used in a VA home loan?
Residual income and debt-to-income Continue to Unit 1: Mortgage Loan Types Return to Unit 4: VA Loans and the Consumer View Exam Results
The Ropers are purchasing a home using VA financing. The sales price of the home is $210,000. The CRV comes in at $215,000. On what number will the VA's loan guarantee be based?
$210,000, the sales price
Your buyer, Chet, is a veteran trying to buy a house, but the certificate of reasonable value came in $10,000 lower than the agreed-upon sales price. What can Chet do?
Negotiate with the seller
What percentage of closing costs can be included in a VA loan?
None
You have a client who wants to obtain a VA loan. You refer them to ______.
A VA-approved lender
A VA loan program that allows a veteran to refinance at a lower rate and receive cash proceeds to fund other investments or purchases is ______.
Cash Out Refinance
How does the VA qualify a property for a VA-guaranteed loan?
Through a VA-approved appraiser
Does the VA make direct loans?
Yes, for Native Americans on trust lands
Which of the following VA programs requires a credit check, new appraisal, and income verification?
Cash Out Refinance
How do VA loan programs compute "residual income"?
Income minus shelter expenses and debts
Your client has a VA loan and wants to refinance to a lower rate. Which of the following is likely the simplest option?
Interest rate reduction refinance
What is the interest rate on a VA loan?
It varies by lender
Chanel is buying a brand new home with a VA loan. She's obtained a certificate of reasonable value. For how long is that CRV valid?
One year
Your client, Shelby, a veteran using a VA loan to finance her purchase, just learned that the CRV came in lower than the sales price. But no problem: Shelby's brother is willing to loan her the difference. If the loan is approved, ______.
Shelby must still be under the VA's debt-to-income ratio
Tom's CRV came in low and he's decided to make up the difference in cash. What else will be required?
The VA may require Tom to prove the source of his funds.