1. VA Benefits Briefing This document contains U.S. Department of Veterans Affairs proprietary business information and may not be reproduced without permission. VA Benefits Briefing Transition Tools for a Brighter Future Loan Guaranty Service

2. VA Benefits Briefing What is a VA Guaranteed Home Loan? 2 VA-Guaranteed Home Loans are made by private lenders, such as banks, mortgage companies and credit unions. These loans are made to eligible Veterans for the purchase of a home for their own personal occupancy. VA guarantees the loan to protect the lender against loss if the payments are not made.

3. VA Benefits Briefing What can a VA-Guaranteed Home Loan be used for? 3 VA-Guaranteed Home Loans can be used to: Buy or construct a home Buy a condo Buy a manufactured home and lot Repair, alter, renovate and improve a home Refinance an existing lien Can be used for property located in the US, its territories or possessions X Cannot guarantee Business Loans (contact SBA) X Cannot guarantee Farm Loans (unless residence)

4. VA Benefits Briefing What are some advantages of a VA-Guaranteed Loan? 4 Advantages of VA-Guaranteed Home Loans Generally no down payment No Private Mortgage Insurance (PMI) Freely negotiable interest rate No prepayment penalty Benefit never expires - can be used more than once Entitlement may be restored VA assistance to Veteran borrowers experiencing temporary financial difficulty (877) 827-3702

5. VA Benefits Briefing Loan Limits 5 There is no maximum loan amount; however, there are maximum loan “limits” – loans above this limit will likely require a downpayment. Loan limits vary by county. Minimum guaranteed loan limit is $417,000 (assuming full entitlement) Find the county loan limit: http://www.benefits.va.gov/homeloans/

6. VA Benefits Briefing Native American Direct Loans 6 VA makes direct loans to Native Americans living on Trust Land (reservations, homelands) Maximum loan limit is the same as for guaranteed loans Veterans must meet credit and income qualifications

7. VA Benefits Briefing Funding Fee 7 The law requires a funding fee to be paid on VA loans Fee ranges from.5% to 3.3%, depending on loan type and if first-time or second-time user Fee can be included in the loan Fee is waived for Veterans entitled to VA disability compensation* and surviving spouses in receipt of Dependency and Indemnity Compensation

8. VA Benefits Briefing What are the steps to obtaining a home? 8 Here are the typical steps to obtaining a VA-Guaranteed Home Loan: Apply for a Certificate of Eligibility (eBenefits) Obtain pre-approval from a lender Find a property to buy Complete application process with lender Lender obtains a VA appraisal Close the loan and move in

9. VA Benefits Briefing Eligibility 9 Active Duty: Generally, must serve 24 months of continuous active duty or the full period for which called or ordered to active duty (at least 90 days) unless discharged for a service-connected disability. Guard/Reserve: Requires a total of 6 years of service unless activated or discharged for service-connected disability. Certificate of Eligibility (COE) shows Servicemember’s or Veteran’s eligibility for the benefit - COE must be updated upon separation/retirement

10. VA Benefits Briefing Requirements 10 Must satisfy eligibility criteria Loan must be for eligible purpose Must occupy or intend to occupy (spouse and dependent children may satisfy occupancy requirement) Income must be stable, reliable, and sufficient Must have satisfactory credit Must satisfy lender requirements

11. VA Benefits Briefing Useful Information 11 Loan Guaranty Service: http://www.benefits.va.gov/homeloans/ VA Pamphlet 26-7, VA Lender’s Handbook Title 38 – United States Code, Chapter 37 Regional Loan Centers: http://www.benefits.va.gov/homeloans/rlcweb.asp http://www.benefits.va.gov/homeloans/rlcweb.asp

12. VA Benefits Briefing Specially Adapted Housing/Special Home Adaptation Grants SAH grant programs improve the quality of life for severely disabled Veterans by allowing them to live more independently in their homes. Over the last two years, the SAH workload has increased significantly; the number of grants approved has increased over 50%. Legislative changes have expanded eligibility criteria, allowed for multiple grant uses, increased grant amounts and allowed for yearly adjustments based on a cost of construction index. 12

13. VA Benefits Briefing Specially Adapted Housing/Special Home Adaptation 13 Specially Adapted Housing (SAH)/Special Home Adaptation (SHA) Grants can be used to help accommodate home, purchase adapted home, purchase land to build home, build home on land owned by veteran. Temporary Residence Adaptation (TRA) Grants can be used to modify the home of a family member. CURRENT Maximum Amounts SAH: $64,960 SAH TRA: $28,518 SHA: $12,992 SHA TRA: $5,092

14. VA Benefits Briefing SAH Program Structure 38 USC §2101(a) Specially Adapted Housing (SAH) Grant Eligibility Loss or loss of use of both lower extremities Blindness in both eyes plus loss of one lower extremity Loss or loss of use of one lower extremity together with: 1. residuals of organic disease or injury, or 2. the loss or loss of use of one upper extremity Loss of both upper extremities, at or above the elbows Certain severe burn injuries 14

15. VA Benefits Briefing Specially Adapted Housing Public Law 112-154 changes Applies to Veterans who served and became permanently disabled after September 11, 2001 due to the loss or loss of use of one lower extremity, severely affecting the functions of balance or propulsion Expires September 30, 2013

16. VA Benefits Briefing SHA Program Structure 38 USC §2101(b) Special Housing Adaptation (SHA) Grant Eligibility Blindness in both eyes with 20/200* visual acuity or less Anatomical loss or loss of use of both hands Certain respiratory ailments Certain severe burn injuries

17. VA Benefits Briefing SAH/SHA Grants Can be used a maximum of 3 times Can be adjusted annually based on the Turner Index In FY2010, VA approved 1,421 §2101(a) grants totaling over $64.97M 128 §2101(b) grants totaling over $1.17M

18. VA Benefits Briefing Temporary Residence Adaptation Grant 38 USC §2102A Temporary Residence Adaptation (TRA) Grant Eligibility Based on eligibility for 2101(a) or 2101(b) grant Used to modify the home of a family member Can be used only once Is counted as one of the three allowable uses Is deducted from the total maximum grant amount*

19. VA Benefits Briefing Regional Loan Centers 5 Denver Phoenix Houston St. Paul St. Petersburg Atlanta Roanoke Cleveland Honolulu

20. VA Benefits Briefing Questions? You can find a list of RLCs and Specially Adapted Housing agents (and their contact information) at: http://benefits.va.gov/homeloans/ Betty Rhoades Chief, Specially Adapted Housing betty.rhoades@va.gov Thank you for your time!