VA Loans: An Overview

Shashank ShekharCEO, Arcus Lending

About Arcus Lending

• Arcus Lending is Mortgage Lender based in San Jose, California

• Products Offered: Residential Mortgages- FHA, Conventional, VA, 203K, HARP, HomePath, Reverse Mortgage, CHDAP, 80/10/10

• Geography Served: California, Washington and Oregon

• What are they known for: Legendary customer service, quick closing and rates that are consistently better than the leading banks

Ab About Shashank Shekhar

• Shashank Shekhar is the Founder and CEO of Arcus Lending

• Amazon.com Best-selling Author and “Top 40 under 40 Mortgage Professional” 2 years in a row

• National speaker, and a blogger who is frequently tapped for his expertise by various national and local media including FOX, CBS, ABC and NBC

• The information contained within this document is for educational purposes only. Every attempt has been made to provide accurate, up to date, reliable and complete information. No warranties of any kind are expressed or implied. Readers acknowledge that the author is not engaging in rendering legal, financial or professional advice.

Disclaimer

Agenda

• What is a VA loan?• Who is eligible for a VA loan?• What are the loan limits?• What are the requirements?• What is the funding fees?• How can you get a VA loan?

What is a VA loan?

• Veterans Affairs (VA) home loans are mortgages that are guaranteed by Veterans Administration.

• The loans are made by mortgage lenders and banks.• Service members, veterans and eligible surviving

spouses may qualify for VA home loans.

Who is eligible?

• Eligibility is based on the veteran’s length and type of military service. Generally speaking, VA determines that veterans who fulfill the criteria below are eligible for the VA home loan benefit:– Veterans with two years of continuous active duty

and an honorable discharge– Veterans with six years of service in the Selected

Reserves or National Guard and an honorable discharge

– Veterans with 90 days active duty wartime service and an honorable discharge

Who is eligible?

– Veterans with 181 days of continuous active duty during peacetimes listed below and an honorable discharge:July 26, 1947 – June 26 1950February 1, 1955 – August 4 1964May 8, 1975 – August 1, 1990

– Un-remarried surviving spouse of a veteran– Eligibility determined by Veterans Administration (VA)– Veteran must have been totally disabled at the time of death

or died on active-duty or as a result of service connected injuries or illness (VA determines cause of veteran’s death)

Who is Eligible?

⁻ For Interest Rate Reduction Refinance Loans (IRRRL), the Certificate of Eligibility must be in the deceased veteran’s name and social security number

⁻ For purchase and cash-out transactions, the Certificate of Eligibility must be in the surviving spouse’s name

Obtaining Certificate of Eligibility?

• A certificate of eligibility is required for all VA home purchase loans. This can be obtained through VA’s website https://vip.vba.va.gov or by contacting VA’s eligibility center at 1700 Clairmont Road, Decatur, GA 30031 – Phone: 888-768-2132.

• Most regional loan centers also prepare certificate of eligibility for walk-in veterans.

VA Loan Amount Limits

• The Department of Veterans Affairs (VA) Loan Guaranty program does not set a maximum amount that an eligible veteran may borrow using a VA guaranteed loan. For 2013, the maximum loan limit can be as high as $1,094,625 in certain counties. However, most lenders don’t lend beyond $729,750.

• The minimum loan amount limit for all counties is $417,000.

Loan to Value (LTV) Ratio and Down payment Requirements

• You can borrow up to 100% of the purchase price (or appraised value whichever is lower).

• Funding fees can also be financed in the loan amount. No minimum down payment or cash investment is required unless:– Your available entitlement is less than 25% of the

total loan amount, including funding fee or– There is a Co-borrower on the loan who is not a

veteran or the spouse of the veteran borrower

Other Requirements

• Credit Score Requirements– Most lenders would require a minimum credit

score of 640.

Other Requirements

• Occupancy– Veteran must either occupy the home at the time

of closing or certify that he or she will occupy within 60 days of loan closing. The veteran’s spouse who occupies the home satisfies the occupancy requirement when the veteran cannot occupy the home due to overseas active duty assignment.

VA Loans Funding Fees

• See the chart below for funding fees. • Note: Funding fees can be added to the loan amount

and you do not need to pay this from your pocket at close.

How do I get a VA loan?

• Call (408) 615 0655• Email: Info@ArcusLending.com• Website: www.ArcusLending.com• Blog: www.LendingExpertBlog.com• FaceBook: www.facebook.com/ArcusLending

Licensing Info:Arcus Lending Inc, NMLS ID 1035734 and CA BRE #01857474Shashank Shekhar NMLS ID 8176

Shashank Shekhar NMLS 8176