What is the maximum VA loan?
Although there is no maximum VA loan (limited only by the reasonable value or the purchase price), in Oregon lenders generally limit the maximum VA loan to $417,000. If you’re interested in purchasing a home over $417,000 using a VA loan we can explain how you can do this. Just call.
Why is a VA Loan a better choice than a conventional loan?
VA Loans have many benefits not offered by conventional loan programs in Oregon, especially for first-time home buyers with little or no money for a down payment. Unlike conventional loans, VA Home Loans do not have private mortgage insurance requirements. Additionally, VA Loans usually have more competitive rates than conventional loans and are not subject to the amount of closing costs associated with conventional loans. Also, there are certain fees that VA mortgage borrowers cannot be charged. VA Home Loans give you the ability to refinance to a lower rate without having to re-qualify for the loan, a process known as a VA Streamline Refinance, or IRRRL. Many Oregon Veterans take advantage of the VA refinance programs every year.
I lost my certificate! Where do I get a replacement VA Eligibility Certificate for a VA loan?
We will get an updated Eligibility directly from the Veterans Department if you’ve lost or misplaced your Certificate. Don’t worry if you can’t find yours.
Why is my local bank discouraging me from using a VA Loan?
In Salem, Portland, Eugene, and Bend a large number of local banks and credit unions are not approved to issue VA Loans or may only close a few each year. This lack of comfort in program can often be what guides this opinion. If your local bank is discouraging you from choosing a VA Loan, make sure it has the ability to issue VA Loans. For a majority of Veteran home buyers, a VA Loan is the best option due to the fact that no down payment is required.
Can I use a VA Loan to purchase a home with my Domestic Partner?
Yes, this is possible. The problem is VA makes it a little complicated. Here are the details directly from VA underwriting rules. As you might have guessed, they aren’t very supportive of Domestic Partnerships.
“When co-borrower is not a veteran or the veteran borrower’s spouse, VA will guaranty only the veteran’s portion of the loan – A down payment ≥ 25% of the non-veteran co-borrower’s portion of the loan is required – If there is one co-borrower who is not the veteran’s spouse and is also not a veteran, the veteran’s “portion” of the loan is half of the loan amount o Combination of veteran’s entitlement plus down payment must be ≥ 25% of the base loan amount, excluding the financed funding fee”
So if you’re a Veteran, and want to buy a house with your Domestic Partner who is not a veteran budget for a 12.5% down payment of the actual sales price.
How long is the process for getting a home loan?
Many factors go into the timing of the process. To be safe, you should allow at least 30 days from contract signing to closing date. However, it is possible to close much sooner depending on the circumstances. With the help of our VA Loan Specialists, the process is quick and easy, whether you are buying a home in the Salem or Portland areas we have closed VA loans in as little as two weeks.
How far in advance should I get pre-approved?
We recommend getting pre-approved as early as possible once you start looking into buying a home. The pre-approval lets you know you are qualified for a loan and gives you plenty of time to settle any disputes found on your credit report and anything else that could hold up the process. The earlier you complete these tasks, the smoother the process will be once you find a home. We are conveniently and serve clients throughout Oregon via our online loan interface.
I’m a Disabled Veteran; do I pay the VA Funding fee?
Generally the VA Funding fee is waived for disabled veterans. Contact our office for details on the additional benefits for disabled veterans.
My Credit Isn’t Perfect. Can I Get A VA Loan?
Yes, In Oregon you can get a VA loan even without “perfect credit”. Our VA Loan underwriters use aggressive underwriting to help people who are VA eligible receive loan approval, so you don’t need perfect credit or a high credit score to qualify for a VA loan in Oregon.
What does entitlement of $36,000 actually mean?
Your entitlement is the amount that the VA will guarantee for your loan with the lender. $36,000 is the maximum entitlement and with this entitlement the VA will guarantee a home loan up to the conventional county loan limit, which is $417,000 in Oregon.
I am a Veteran who purchased a home with my spouse utilizing my VA eligibility. I am now divorced and my spouse was awarded the home. How do I get my eligibility back?
When the property is awarded to the Veteran’s spouse as a result of the divorce, entitlement cannot be restored unless the spouse refinances the property and / or pays off the VA loan in full or the ex-spouse is a veteran who substitutes their entitlement. In the unfortunate event of a divorce it is always good practice to demand the person awarded the home refinance it into their own name.
I just got divorced; can I obtain another VA Loan for a new house?
You will still be eligible, but you must have remaining entitlement to take out a new VA Home Loan. Our VA Loan Specialist can help you run the math to determine if you have any first tier or second tier entitlement remaining and if so how much. From there we can give you a price range to stay within to avoid having to make a down payment.
My spouse and I are both eligible for a VA Loan, how does that affect us?
You can choose to use your Certificate of Eligibility or your spouse’s or a portion of both of them and it will have no impact on the details of the loan. One benefit of having an eligible partner is that you can avoid the increased funding fee for subsequent VA Loans. For your next home purchase you could use your spouse’s eligibility and not have to pay the increased fee. So it would be best to use only one eligible at a time or the one that hasn’t been used.
Can I get extra cash at closing to make improvements on my home?
In a purchase transaction if the improvements make the home more energy efficient you can request an energy efficient mortgage (EEM) which can allow you to finance up to an additional $6,000 on your mortgage. If you want to refinance a current mortgage you can pursue a cash-out refinance which would allow you to take out additional funds for certain allowable reasons such as home improvements. In Oregon all home owners should review the programs provided by the Energy Trust of Oregon and take advantage of any free benefits they provide home owners.
Am I eligible for a VA Home Loan as a widow?
The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the VA home loan benefit. In addition, a surviving spouse who obtained a VA home loan with the veteran prior to his or her death (regardless of the cause of death), may obtain a VA guaranteed interest rate reduction refinance loan.
Can I Use A VA Loan To Buy a Rental Property?
No, you cannot use a VA loan to buy a rental property. You can, however, use a VA loan to refinance an existing rental home you once occupied as a primary home. For home purchases, in order to obtain a VA loan, you must certify that you intend to occupy the home as your principal residence. If the property is a duplex, triplex, or four-unit apartment building, you must occupy one of the units yourself.
Are there costs to apply for a VA Loan?
No, we don’t charge any upfront application fees to get the VA Loan approval process started. For more information related to getting started with your VA Loan please contact us and we will go over what fees VA has and when they are to be paid.
What is a DD214?
Your DD214 is your proof of military service. It shows the nature of your discharge, dates of service, and current classification (Retired, Separated, Guard or Reserve status). This is often needed during the process to secure your VA Eligibility Certificate. Can I refinance my current conventional loan into a VA for cash out? Yes. You can refinance a conventional loan into a VA loan at 100% loan to value and get Cash Back at closing.
Rachel Cole, Loan Officer
Rock River Financial
388 State Street
Salem, OR 97301
Office: (503) 316-4322
Toll-Free: (877) 316-8202
Fax: (503) 316-8004
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