VA LOANS and Title Insurance
By Mortgage Expert 16th Jan 2016
A VA loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs (VA). The loan may be issued by qualified lenders. Whenever anyone finance a home purchase either through a VA loan or through a mortgage lender, a person is required to buy TITLE INSURANCE as part of closing costs. SOLUTION TITLE AGENCY helps you in dealing with such title insurance and related services like CLOSING SERVICES, LENDER SERVICES.
- The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses.
- The basic aim for initiation of VA loans is to supply home financing to eligible veterans in areas where private financing is not generally available.
- Moreover, VA loans also to help veterans purchase properties with no down payment.
- To exemplify, Eligible areas are designated by the VA as housing credit shortage areas and are generally rural areas and small cities and towns not near shuttling areas of large cities.
- Solution title agency helps such veterans to buy title insurance as a part of closing services.
Title insurance provides protection to the lender for the time period of the loan in case there is any issue related to title.
Therefore, Title insurance offers protection before actually closing on a property and afterwards if issues later arise.
- Funding Fees: A funding fee must be paid to VA unless the veteran is exempt from such a fee because he or she receives a minimum of 10% VA disability compensation. If a veteran is awarded disability compensation after paying a funding fee, he/she can apply for a refund of this funding fee, so long as the beginning date of the disability is prior to the closing date of the home mortgage.
- The VA funding fee can be financed directly into the maximum loan amount for the country in which the home is located. If the sales price and the financed VA funding fee total is more than maximum loan amount for that county, the borrower or seller must pay for the fee out of pocket.
- The VA loan application is a standardized loan application form 1003 issued by Fannie Mae also known as Freddie Mac Form 65. It is a Federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements on a VA loan application under the provisions of Title 18, United States Code, and Section 1001, et seq.
- Paperwork required to apply:
Copies of your W2 statements for the past two years, so your gross household income can be confirmed,
Copies of your previous two pay stubs,
Documentation of other assets including checking accounts, savings accounts, financial investments, trust funds, etcetera.
If self-employed, two years of consecutive tax returns will be required.
***Buyers are not required to buy owner’s title insurance as home purchase often illustrates an important portion of their net worth.
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