VA loans have been in existence since 1994, following the end of World War II. First, veterans need to find a VA lender and prequalify. The criteria is based on the individual's income, credit entitlement and other financial factors.
Next , the veteran will get an estimate of how expensive a house they can afford. VA loans are primarily designed for “move-in-ready” single-family condo, modular home or some multi-unit properties.
Once the veteran is under contract, their lender will order a VA appraisal of the home and property. Underwriters evaluate the buyer’s income, financial information and other documents along with the appraisal, once it is finalized.
Hopefully the veteran receives pre approval and receives a letter from the lender that verifies the vet’s income and other financial information to show the realtor. When the vet finds a home they desire to buy they put in an offer and with the help of the realtor, negotiate a contract with the seller.
Following the approval, the veteran will be issued a “clear to close” and may complete the closing.
These loans don’t have mortgage insurance, but instead, a monthly fee that a borrower must pay of they have less than 20 percent down on a property.
VA loans are available despite foreclosure or bankruptcy, borrowers can still secure a VA loan.