VA Loan Certificate In Process

[merled]

Hi,

We have been in touch with a TV Bank to discuss buying now if we find just the right home. I plan to retire next end of July, 2011. Of course that temp loan comes with a 20% down payment and closing costs. I say temp loan because once our house would sell the funds would go to pay off the TV home.
However after contacting the VA Mortgage Center we learned that we could get the same for no money down and possibly no closing costs. Plus with my 10% disability the pot got sweetened even more.
The question is has anyone else gone thru the process of using an approved lender for a VA loan and what are your thoughts.
We are so much looking forward to moving down and we look at homes every single day on the TV site.

Thanks, Merle

[GMONEY]

This I can tell you, If you are buying a new home in The Villages, and I do say NEW, no previous owner, more than likely TV will not allow a VA loan. If it is a previous owned home it will be no problem. But VA is the way to go if you can. If you have the loan available and they allow it that is.. I know this from a first hand experience trying it... Now if you hear something different let me kow

[getdul981]

I would also like to know about using a VA loan. We will be coming down next week to pick out the type and color and everything that goes along with a new home.

[KayakerNC]

When I inquired, I was also told NO to VA loans on new home sales.
Let us know your results.

[yobeano]

I also got a "no" at the Village Mortgage company. Would have worked out better for us too.

[sista]

Hi,

We have been in touch with a TV Bank to discuss buying now if we find just the right home. I plan to retire next end of July, 2011. Of course that temp loan comes with a 20% down payment and closing costs. I say temp loan because once our house would sell the funds would go to pay off the TV home.
However after contacting the VA Mortgage Center we learned that we could get the same for no money down and possibly no closing costs. Plus with my 10% disability the pot got sweetened even more.
The question is has anyone else gone thru the process of using an approved lender for a VA loan and what are your thoughts.
We are so much looking forward to moving down and we look at homes every single day on the TV site.

Thanks, Merle

If you go thru a Villages realtor-- ie a new home-- they don't participate with VA loans. Look for a pre owned being sold by a non Villages realtor

[Pturner]

So, I'm guessing you've figured out the corollary: If you buy a resale in TV and don't use TV sales office, you can finance with a VA loan.

[mulligan]

WOW... Big words for a smiley golfball. Hey p- hows nov 4-10 looking for you?

[zcaveman]

So, I'm guessing you've figured out the corollary: If you buy a resale in TV and don't use TV sales office, you can finance with a VA loan.

I think the only restriction on a VA loan is that the Villages requires the 20% down. I would suspect that if you were willing to put down the 20% you could get a VA loan in TV on a new home.

[MaryZ]

How disappointed we were last week to find out no VA loan for us at the Villages! We have picked out a lot in Buttonwood, on Dalecroft Trail, and have been sending in deposits to hold the lot, until we sell our house in Pittsburgh, and when we met with the mortgage folks at the Villages, they never said a word to us about it, well, then we thought we would try another bank,and a VA loan was suggested...well, we got approved and now find out we can't use it....we are so upset!

As soon as we sell our house, we are going to find a way to start building that home...we can't wait!

Hope to meet all of you great folks very soon!

Mary Zanic
Pittsburgh, PA:wave:

[Mickedamouse24]

VA loans can be used to purchase pre-owned homes. TV will not tell you that but if you ask the correct questions, get your own outside financing, they will allow it. My wife and I are currently processing a VA loan through ERA Mortgage in the TV area on a pre-owned home listed by TV. There were and are no issues. I was told the same thing by TV banks and decided to go outside and ask other banks. I figured, I earned the right to be eligible for a VA loan and I took advantage of it. Shop around, there are a large number of pre-owned homes listed by both TV and outside agencies. You will have no problem finding your spot in TV. Good Luck! Welcome Home Brother!:BigApplause:

[getdul981]

In order to get a VA loan, doesn't the seller have to agree to pay some or all of the closing costs? That could be one of the reasons TV doesn't want to go that route.

[GMONEY]

Yes that is right, Under the VA, the buyer can not pay for some of the cost that they would under a conventional loan. This whole deal only in The Villages applies to a new home, it does not apply to a used or previous owned home.. From my understanding and I will verify this, Citizens is not an approved VA lender, so you would have to use outside financing for the VA on a previoud owned home. But there is also more to it than just the closing cost. I asked alot of questions and jumped on alot of desk and feet. but got the info I needed.

Even if you put the 20% down it would ne a no no. Besides if your willing to put the 20% down to go VA, why not just go conventional all the way??????

[getdul981]

We asked our selling agent her in Virginia about using a VA loan on the purchase in FL. She advised that it would be better to go with conventional because the VA would have a higher interest rate and there is some kinda fee that has to be paid (around $2500 or so) and in the long run, the conventional would be better.

[GMONEY]

That would be the VA funding Fee.. I paid it, but it wasnt to bad. The rates are not alot better because of Conventional. I got 5.25 on our VA..

[merled]

This is a real shame and they should be ashamed of themselves, the Villages mortgage folks. A man or woman puts there life on the line to protect this great country and gets this kind of treatment. I thought discrimination was against the law!
Like GMONEY said "Improvise, Adapt and Overcome" !!!!
Good luck,
Merle

[73Goat]

I had the same question since both my wife and I have VA loan eligibility. The bottom line is that TV does not build to VA requirements so you cannot get a VA loan for a home under construction.

That being said, one of the quirks of the VA loan process is that you CAN get a VA loan on a 'spec' home if it is completed and even if it wasn't built VA. I was told this by the VA who said a VA lender could handle the process.

Here's the email exchange with the VA
==================

From: VAVBASPT/RO/HOMELOAN [mailto:HOMELOAN.VBASPT@va.gov]
Sent: Tuesday, November 02, 2010 1:32 PM
To: Marsh, William E
Subject: RE: Question about VA loan eligibility for spec homes



It is possible - just find a VA approved lender and they will be able to take care of the entire process.



From: Marsh, William E [mailto:]
Sent: Tuesday, November 02, 2010 12:48 PM
To: VAVBASPT/RO/HOMELOAN
Subject: Question about VA loan eligibility for spec homes

If a new spec home is completed, but was not built VA , i.e., no inspections, is there a way for me to purchase the home via a VA loan. I have VA loan eligibility but the home was not built VA, it is completed.

[graciegirl]

Thank you for serving our country and Welcome to you!

[jflynn1]

why not use a private bank?

[silvertoken]

The advantages to get a VA loan are:
1. No down payment required.
2. Great interest rates
3. No private mortgage insurance (PMI) required.
4. Easy loan qualification
5. Loan guaranteed by the US government.

[silvertoken]

Thank you for serving our country and Welcome to you!
Thank you, That is very gracious of you.

[getdul981]

The way I understand the way a VA loan works is that the seller has to agree to pay a certain percentage of the closing costs or the selling price or something like that. If you are willing to pay that yourself, you might be able to get the VA loan.

While we were in the process of selling our house in VA, our realtor explained how the VA loans work and she told us that we were better off going with a conventional instead of the VA. I think you have to purchase mortgage insurance with a VA loan also which would offset the difference in percentage points.

I'm not 100% sure how they work, so I would suggest checking with your lender about how you could go about it.

[Fourpar]

When buying new construction in Villages, you will use the Villages contract form to purchase. That contract has no mention/contingency concerning a mortgage. As far as the Villages is concerned, you are committed to pay the contracted price on closing day, regardless of where your funds come from.

Since VA does not allow the Veteran to pay certain closing costs (and requires the property meet certain construction/inspection standards), it stands to reason that you cannot use VA loan to buy New Construction.

Conventional mortgagees don't care who pays the costs involved in the loan. They require that the house appraises for value, but closing costs are buyers' unless agreed upon otherwise by Sellers.

Again, The Villages don't care if you get a loan, but their contract doesn't protect you the Buyer in the event your lender can't close on time.
It's a one-way street buying from The Villages!:22yikes:

That's my experience, for what it's worth!

[taylor111947]

I just found out I was eligible for a VA mortgage as a surviving spouse. I've never bought/sold a home on my own before so I'm chartering new territory here. It sounds as if the main differences between VA and Conventional mortagages are no 20% down and the seller pays some of the closing costs for a VA loan. Am I undertanding it correctly? Also, can the seller refuse to allow VA financing?

[getdul981]

I just found out I was eligible for a VA mortgage as a surviving spouse. I've never bought/sold a home on my own before so I'm chartering new territory here. It sounds as if the main differences between VA and Conventional mortagages are no 20% down and the seller pays some of the closing costs for a VA loan. Am I undertanding it correctly? Also, can the seller refuse to allow VA financing?

It's always been my understanding that the seller has to agree to let you get a VA loan because they have to pay some of the closing.

[silvertoken]

It's always been my understanding that the seller has to agree to let you get a VA loan because they have to pay some of the closing.

The guidelines are as follows, The seller "may" contribute up to 6% of the contract sale price for funding fee, closing cost(including the $2500.00 origination fee). prepaid and other expense.

What is sad is some of the sellers are misinformed about VA and have literally refused selling to veterans of the United States of America. This is only a bargining tool exclusively for veterans. If you have noticed lately a lot of realtors rather use their own banks and frown on the ones you choose, this a countrywide event and does not just pick on the village.

VA loans are contigent on the following, acceptable appraisal to support the value on signed purchase agreement, acceptable title policy, acceptable flood certification, clear termite inspection, final underwriting approval. So if the sellers refuses to sell to a veteran, there must truly be something wrong with the house.
Sincerely

[silvertoken]

When buying new construction in Villages, you will use the Villages contract form to purchase. That contract has no mention/contingency concerning a mortgage. As far as the Villages is concerned, you are committed to pay the contracted price on closing day, regardless of where your funds come from.

Since VA does not allow the Veteran to pay certain closing costs (and requires the property meet certain construction/inspection standards), it stands to reason that you cannot use VA loan to buy New Construction.

VA requires compliance inspections in most cases on proposed new construction to see that the house:

•Meets accepted standards of good construction.
•Conforms to the plans and specifications on which VA's appraisal is based.
VA will try to assist you in getting your builder to correct any defects about which you may have valid complaint
The State of Florida has weathered many storms and increased insurance rates. Im sure the old nail and hammer routine has been updated with reinforced windows and bracket construction.

[Sparky-30]

Forget the new home, pre owned is the way to go, especially if you can find one with lots of amenities already in it, e.g. Pavers in driveway or stamped, lanai thats finished off making it a Florida room,etc, you will save yourself lots and lots of $$$ that way, because once you move in to a new home and look around at other homes with the above mentioned amenities you will want to do that also. We bought our home 3 months ago, even had a golf cart that went with it.

[silvertoken]

While we were in the process of selling our house in VA, our realtor explained how the VA loans work and she told us that we were better off going with a conventional instead of the VA. I think you have to purchase mortgage insurance with a VA loan also which would offset the difference in percentage points.

I'm not 100% sure how they work, so I would suggest checking with your lender about how you could go about it.

A veteran gets a VA loan to avoid private mortgage insurance, PMI. All they pay for is a VA funding fee which is 2.25% of the cost of the house. This is usuallly added to the cost of the house at closing.

[silvertoken]

My wife and I will be coming by the 6-9 Dec.. We got married by Elvis in Vegas a couple years ago and we are now looking for our Graceland in The Villages. I tried to convince her that King Ludwigs castle in Germany was a nice place to live, and brought her there and she said it was nice but, was very insistant on showing me The Villages instead.

[getdul981]

A veteran gets a VA loan to avoid private mortgage insurance, PMI. All they pay for is a VA funding fee which is 2.25% of the cost of the house. This is usuallly added to the cost of the house at closing.

Our next door neighbors from VA were here last week and found a house that they wanted to buy (new), and tried everything imaginable to get a VA loan, but were not allowed. They finally had to go conventional.

[silvertoken]

Our next door neighbors from VA were here last week and found a house that they wanted to buy (new), and tried everything imaginable to get a VA loan, but were not allowed. They finally had to go conventional.

This is why its a problem to a builder.

Yes. If you are considering building new construction or buying a spec home that is less than one year old your builder will need a special ID number. To become registered with the VA and obtain the ID number the builder will need to submit the 3 forms listed below to the VA Regional Loan Center for your state.

1.Equal opportunities employment certificate
2.VA affirmative marketing certificate
3.Identifying and information certificate – Note must be put on builder’s own letterhead.

[73Goat]

Disappointing to be sure. I can understand why TV doesn't want to build to VA spec. In another life I was a construction manager for a large builder in Texas and built VA/FHA, it was a hassle.

I don't understand why TV wouldn't file the paperwork necessary to allow the use of VA financing on spec homes tho. As I understand it this can be done even on a home not built to VA spec. They would have to get a VA 'final' inspection, but that isn't difficult.

My wife and I would like to buy a spec VA, but, based on this information, this seems unlikely.

[silvertoken]

Lyle, Thanks for making a Veterans dream come true, it was a great experiance, and fast too. Guess I'll have to make you Master Sarge in this area. Nice house great price.

[JeffBorn]

Hi Friends
My first post. We have placed a deposit on a lot on Odessa Cir and will be building shortly moving up from Winter Park FL. I have a rather reliable independent mortgage broker that indicates the VA Loan process in the Villages would be the usual 20% cash down to TV to begin the construction process and at closing your down payment is refunded as the lender will cut a check to you and the developer. Allowing the 100% financing if that is what you choose to do. Not sure what the developers position is but feel fairly confident my broker knows the process. There is a 3% funding fee for a VA loan which is basically advance payment of a sort of PMI which can be rolled into the loan. Rate is about .25% higher (4% at last discussion) than conventional. That's our current plan and we are really looking forward to being members of the community. Hope that helps, if it is correct.

[jgbama]

Hi,

We have been in touch with a TV Bank to discuss buying now if we find just the right home. I plan to retire next end of July, 2011. . . . . The question is has anyone else gone thru the process of using an approved lender for a VA loan and what are your thoughts.
We are so much looking forward to moving down and we look at homes every single day on the TV site.

Thanks, Merle

Appreciate you bringing the VA Loan issue to TOTV. Would be interested on where you stand now in the process. Are you still looking at a VA Loan? We too are wanting to do a VA loan, but we have settled on going with a pre-owned, hopefully furnished, home. It will probably be this time next year before we start the process though.

I have learned a great deal from the numerous posts to your original question, which were really helpful. The lesson I learned is "get your ducks in a row".

Any update would be helpful to those of us who are considering a VA Loan, but have not started the process yet. That is why I decided to do a "post", rather than a PM to you.

Thanks again!!

[JeffBorn]

Final word on VA loans on new construction in TV. Will not happen. My mortgage broker provided all needed paperwork and offered to fill it out. The builder will not cooperate with the warranties and inspection process required by the VA. Not to be confused with the subcontractor that builds the house. The developer that oversees the process and from whom you buy the home does not cooperate.

[jgbama]

Final word on VA loans on new construction in TV. Will not happen. My mortgage broker provided all needed paperwork and offered to fill it out. The builder will not cooperate with the warranties and inspection process required by the VA. Not to be confused with the subcontractor that builds the house. The developer that oversees the process and from whom you buy the home does not cooperate.

I was told that too about new homes. We are interested in a pre-owned and will call our TV salesman to inquire about pre-owned listed through TV. I've gotten the impression we can use VA loan on properties listed by other realtors, but will find out about TV listed properties.

Thanks.

[billmar]

If you have the 20% down, I think you can find better interest rates with conventional. My husband and I are both veterans. We've bought several homes over the years, and only used our VA once (years ago) as we found the VA Loans take longer to get to closing. I hear this is one reason sellers don't prefer VA loans. IMO, if a seller gets multiple offers, all else being equal, they'll probably take the offer that has conventional lender financing. The VA has a reputation for making sellers jump through too many hoops.

[ladydoc]

I agree with Gracie...thank you for serving. My dear Hubs was career military and darn proud of it and I am so proud of him!

[ilvgolf]

Hi,

We have been in touch with a TV Bank to discuss buying now if we find just the right home. I plan to retire next end of July, 2011. Of course that temp loan comes with a 20% down payment and closing costs. I say temp loan because once our house would sell the funds would go to pay off the TV home.
However after contacting the VA Mortgage Center we learned that we could get the same for no money down and possibly no closing costs. Plus with my 10% disability the pot got sweetened even more.
The question is has anyone else gone thru the process of using an approved lender for a VA loan and what are your thoughts.
We are so much looking forward to moving down and we look at homes every single day on the TV site.

Thanks, Merle
GMAC and Chase both have VA loans. I have one!