VA Home Loans - Requirement Questions
Please use the links below to find more information about VA home loan requirements.
- Does the VA require a home inspection?
- Why do we need a pest inspection?
- Why do you need my previous address and employer?
- Why do you need to verify my earnest money if it is in the contract?
- Are the requirements different for a new construction loan?
- Does the VA require insurance to be paid one year in advance?
- If I don't currently escrow for my taxes and insurance, why do I have to with a VA loan?
- Was your question not answered?
Does the VA require a home inspection?
No, the VA does not require a home inspection, but it is always a good idea to have a professional come and check out the property you are going to purchase so you know what you are getting into and don't have any unexpected surprises down the road.
Why do we need a pest inspection?
A pest inspection is required on a VA loan to protect the buyer from taking ownership of a property that may have had its life cut short by infestation. If pests are found they are required to be treated for by a professional before closing. This protects the veteran or active duty buyer from getting into an unexpected bad situation.
Why do you need my previous address and employer?
Mortgage guidelines require a certain amount of history to prove credit worthiness and income continuation. Two years is that guideline.
Why do you need to verify my earnest money if it is in the contract?
Earnest money has to be verified so it can be counted as an asset. A cancelled check will suffice for this verification or a bank statement showing that money being withdrawn.
Are the requirements different for a new construction loan?
Yes, there are some different requirements for new construction. The home has to have a warranty and the builder has to be a VA approved builder. If you have questions as to whether or not your builder is VA approved, your loan officer can check for you. If they are not VA approved, your loan officer can also help to get them approved.
Does the VA require insurance to be paid one year in advance?
Yes, with a VA loan you are required to escrow for your taxes and insurance. Normally when escrowing for insurance, you will pay the first year's insurance premium at closing.
If I don't currently escrow for my taxes and insurance, why do I have to with a VA loan?
VA requires an escrow account to protect the lender from having mortgages on uninsured homes. It also guarantees that taxes are paid on the property as well. Some programs don't require that, but the VA does. It is a convenient way to get these items paid and also keep you from owing your complete tax bill at the end of the year. For more financial information about VA loans, suchas costs, etc., check out VA Loan Costs and Rates FAQ's.
VA LOAN SPECIALIST
If you're ready to get started with your VA loan or if you want to determine if a Veteran Home Loan is actually the best financial decision for you, you may get advice from a VA mortgage specialist online or call 800-405-6682.
Get Started With Your VA Loan Request
Take the first step toward your VA loan by getting in touch with a VA specialist.
