1. Honoring Our Nation’s Heroes
LenderSelect Mortgage Group
VA Advantage Series
Honoring Our Nation’s Heroes

2. What is a VA Home Loan?
The Department of Veterans Affairs (VA) helps Servicemembers, Veterans, and eligible surviving spouses become homeowners.
The VA provides a home loan guaranty benefit to help with the purchase or refinance of a primary residence.
VA Home Loans are provided by private lenders (banks and mortgage companies), not the VA.
If the borrower fails to repay, a portion of the loan is “backed” by the VA, offering loss-protection to the lender.
This enables lenders to provide more favorable loan terms and interest rates to borrowers.

3. What Can a VA Home Loan Be Used For?
Purchase of a primary residence
Stick-built, Modular, Manufactured (restrictions may apply), Townhouse, or Condo (VA-approved project)
Purchase new construction.
Simultaneously purchase and make energy-efficient improvements (EEMs).
Refinance of an existing VA home loan
Up to 100% cash-out (if still the primary residence)
Interest Rate Reduction Loans (IRRLs) do not require current owner occupancy. For example:
A Veteran is transferred to a duty station overseas. They decide to rent out their home while overseas. The Veteran may do an IRRL because they previously occupied the home.

4. Program Highlights Down Payment Requirement – ZERO!!!!!
Credit Score Requirement
600 minimum preferred
580 available (with credit overlays)
Loan Limits
$424,100* with no money down and full entitlement.
Loan amounts can be higher with a down payment.
*Some areas may have higher loan limits.
Gift Funds – Allowed (with documentation)
Cash Reserves – None required for single-family home
Loan Types – Fixed & ARMs

5. VA Eligibility – Who Can Do a VA Loan?
ERA
Dates
Service Time Required
WW II
90 days
Post WW II
7/26/ /26/1950
181 days
Korean
6/27/ /31/1955
Post Korean
2/1/ /4/1964
Vietnam
8/5/ /7/1975
Note: The Vietnam Era began 2/28/1961 for those individuals who served in the Republic of Vietnam.
Post-Vietnam
5/8/ /7/1980
5/8/ /16/1981
9/8/ /1/1990
10/17/ /1/1990
Enlisted days
Officers days
Enlisted - 2 years**
Officers—2 years**
Gulf War
8/2/ present
2 years
**Note: The veteran must have served 2 years or the full period which called or ordered to active duty (at least 90 days during wartime and 181 during peacetime).

6. VA Eligibility – Who Can Do a VA Loan?
Current Active Duty – 90 days
Members of the Reserves & National Guard must have 6 years of service.
Veterans with a service-connected disability.
Spouses of Veterans
Unmarried surviving spouse of a veteran who died from a service-connected cause.
If remarried, must be age 57+ and remarried after Dec. 16,
Spouse of MIA or POW active duty member.

7. VA Funding Fee & Mortgage Insurance
VA Funding Fees are financed into the borrower’s loan.
Putting money down may reduce the funding fee.
Veterans with disabilities may be eligible for funding fee waiver.
No monthly mortgage insurance!!!
Type of Veteran
Down Payment
% for First-Time Use
% for Subsequent Use
Regular Military
None %
10% or more
2.15%
1.50%
1.25%
3.30%
Reserves/
National Guard
2.40%
1.75%

8. VA Jumbo Loans
VA loans are a great way to purchase a luxury home with:
Low rates
Lower down payment
Lower fees
No Monthly Mortgage Insurance
For example:
$650,000 Purchase Price
Less VA loan limit of $417,000 = $225,900 difference
VA Jumbo Down Payment = 25% of difference
VA Jumbo Down Payment = $56,475 (only 8.69% of purchase price)
A substantial savings compared to Conventional Jumbo Loans!!!

9. Seller Contributions & Concessions
Sellers may pay ALL allowable closing costs and pre-paids!!!
Including up to 2% in discount points

10. Seller Contributions & Concessions
Sellers may also pay up to 4% of the purchase price to be used at the buyer’s discretion.
What’s Not Allowed:
Cash
Decorating allowances (including carpet & flooring)
Moving Costs
Payment abatements
More than 30 days of interest

11. Seller Contributions & Concessions
Sellers may also pay up to 4% of the purchase price to be used at the buyer’s discretion.
What’s Allowed:
Payoff of debt, collections, or judgments
Appliances
VA funding fee
Real estate taxes (advance payments)
Hazard insurance

12. Damaging Credit Events
BANKRUPTCY
Chapter 7
2 years from discharge date
1 year from discharge date, with extenuating circumstances*
Chapter 13
1 year payout completion; payment history must be satisfactory
*Extenuating circumstances are temporary events that are beyond a borrower’s control, such as the loss of a job, medical bills or death of a wage earner. Divorce does not qualify. These events must be verified and documented, and they are subject to review by the underwriter.

13. Damaging Credit Events
FORECLOSURE
2 years from discharge date (if related to a bankruptcy)
2 years from sale date (if not related to a bankruptcy)
1 year from sale date, with extenuating circumstances*
*Extenuating circumstances are temporary events that are beyond a borrower’s control, such as the loss of a job, medical bills or death of a wage earner. Divorce does not qualify. These events must be verified and documented, and they are subject to review by the underwriter.

14. Damaging Credit Events
SHORT SALE / DEED-IN-LIEU OF FORECLOSURE
No wait period!
Current on mortgage payments
Not taking advantage of declining market conditions

15. How can LSMG help you and your borrowers with a VA loan?