FHA Loan Articles
News, updates, and explanations to keep you informed.
Is There an Age Limit on VA Home Loans?
The VA loan benefit is offered to all qualifying veterans who have met their time in service requirements and/or discharge requirements. Some military people use their VA home loan benefits as soon as they are eligible, while others wait until later in life to invest in a home.
Borrowers who buy early, pay off their VA mortgages and decide to purchase again later on may wonder if there's a time limit or even an age limit for VA home loan eligibility. Fortunately, VA home loan rules are clear on these subjects.
VA loan rules state that a borrower who has purchased and paid off a home with a VA insured mortgage can apply for another home loan--but the first requirement is that the borrower must apply for restored VA loan eligibility. This means showing proof that the original VA loan has been paid in full or otherwise satisfied.
Borrowers are required to sell the property before getting VA loan eligibility restored, but on a one-time basis the Department of Veterans Affairs does permit a new VA loan without requiring the borrower to sell the first property.
The VA requires the borrower to submit proof in either case, showing the property has been paid off (and sold, where applicable). VA loan eligibility must be restored before loan approval can be issued for a new VA mortgage. Your loan officer can help get the eligibility restoration process started.
Borrowers should know there is no time limit or "maximum age" limit on VA loans. As long as a borrower is otherwise qualified, age and time do not play a part in the loan approval process, except where legal minimum age and mental competency are concerned-a borrower must be of legal age and considered competent to sign a binding contract in the state where that contract is to be enforced.
FHA NEWS and RELATED ARTICLES
If a borrower is getting a divorce, for example, refinancing the property under a single person's name (removing the spouse) would make sense. The reverse is true for a single borrower who is refinancing and getting married.
When an FHA borrower applies for a loan and the spouse does not co-sign or co-borrow, are there situations where the spouse would be obliged to sign loan documents? It's a commonly asked question in states where community property laws exist.
FHA loans are available for condominiums--a fact that surprises some FHA loan applicants, but is a fairly common FHA insured mortgage option. A condo is a property with ownership titles for individual units within the property.
FHA rules include guidelines for how the lender must review an FHA loan applicant's credit data. The lender is given clear instructions on how credit scores are used in the loan approval process.
The FHA issued several press releases about contaminated drywall products imported from China which may have been used to construct homes later purchased with FHA insured home loans.