Latest VA Loan News, 2008
When applying for a VA home loan, or if you are thinking about applying or refinancing sometime in the future, it is important to stay informed about the latest VA home loan news. The Veterans Administration is always trying to find new ways to improve their home loan program and make it easier and more accessible for veterans looking to buy a new home.
As part of our efforts to keep you up-to-date on changes with VA Loans, we suggest you check out this video that was recently released and is getting some buzz online - VA Home Loan Video. It was produced by a leading lender that specializes in servicing VA Loans. It offers up some good basic information about the program and its benefits. Also, be sure now more than ever to explore the benefits offered by these government-backed programs like the VA and FHA. The loan market is experiencing a crunch, and the government programs offer many their best shot at a good loan. Don't be put off by past assumptions on these loans. Check them out!
Some of the latest news from the Veterans Administration concerns the home appraisal process. An appraisal is done every time a mortgage loan is requested for the purchase of a home. The purpose of the home appraisal is to determine the value of the property so that the lender knows how much it is worth and can offer you a loan amount accordingly. This way you know that you are not paying too much for the home and the lender knows that the home is worth the value they are lending you in case it needs to be sold so they can recapture the money you borrow.
On May 17, 2005 the Veterans Benefits Administration at the Department of Veterans Affairs released news that new appraisal forms and a new appraisal report were required. The news release states:
- As of November 1, 2005 the newly revised appraisal forms must be used in order to obtain a VA home loan.
- The new appraisal forms are required for single family homes, condominiums, manufactured homes, and two to four unit income properties.
- The new form also requires all appraisals for VA home loans to comply with the VA requirements regarding completing the appraisals and turning them in.
The new appraisal forms can be found at http://www.efanniemae.com/singlefamily/forms_guidelines/selling_servicing/formlist.jhtml or http://www.freddiemac.com/sell/forms/.
When you are applying for a VA home loan, make sure you use a VA approved appraiser and lender in order to insure that your application meets with all the rules and regulations of the VA. If you have any questions about the new appraisal forms or for further information go to our VA Loans page.
Common VA Loan Questions
If I sell my property on an assumption, can I obtain another loan in order to buy a new home?
In most cases, no. You may not renew your entitlement until the assumer pays the rest of your VA loan. If the assumer is also a veteran who is willing to substitute his/her own entitlement for yours, then you could obtain a new loan.
Am I held responsible if a person who assumes my VA loan defaults on the loan?
While the VA will not hold you responsible, the VA does pay a claim to the mortgage company when the assumer defaults. You will not be able to obtain a new entitlement until that loss has been paid in full.