VA home loans are for borrowers purchasing or refinancing a primary residence. Investment and second home purchases are not allowed under this program.
After you have found a home or decided to have a new one built, you will need to have it approved for a VA loan through a VA-approved appraiser.
Once the property is located a VA appraiser will need to go out and assess the value of the property This is done like on any other loan however the VA requires that a VA approved appraiser is used. This appraisal is especially geared towards reporting any defects involving safety or security of the home.
Here is a list of things to consider when shopping for a new home:
- The appraiser needs to inspect both the inside and the outside of the house. If the house in question is being constructed, the appraiser still needs to analyze the property and construction site.
- The official appraisal report will contain a list of “observable repairs that need to be completed.”
- This report will also contain a list of “customer preference items to be installed.”
- A few small issues with the property won’t immediately disqualify it, but a lot of small issues or a few big issues may.
VA loan limits are also an important factor when it comes to taking out a loan. Accross most of the US the limit is $417,000.
To check what the VA county loan limits are for each county in the United States, you can visit the U.S. Department of Veterans Affairs at their loan limit website. For counties that are not listed on the website, the official VA loan limit is automatically set at $417,000.
Now, if the value of the home you want to purchase is greater than your county loan limit, don’t worry. You can get what is referred to as a “VA Jumbo Loan,” which will allow you to take out a VA loan on a home valued above the applicable county loan limit
VA Jumbo Loans, the VA mandates that the borrower pay 25% of the difference between the cost of the loan and the VA county loan limit.