Flotilla Real Estate Partners • Military Division
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Flotilla has your back when it comes to our active duty military and veterans looking to buy or sell their home. We know the VA loan process is complex, and working with an agent who knows the in's and out's of the program is of highest importance. We partner with your fellow veterans & professionals who've moved into the real estate industry, and have earned official Military Relocation Certification from the National Association of REALTORS®.
We've collected the information on this page as a resource to our military friends & family looking to make a move. Please use this page to answer your questions, and contact us when you're ready to buy or sell!
We've collected the information on this page as a resource to our military friends & family looking to make a move. Please use this page to answer your questions, and contact us when you're ready to buy or sell!
Your Team
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VA BUYERS • Myths & Misconceptions
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For military home buyers using their VA Loan benefits to purchase a home, we know there are plenty of questions and details about the process. Flotilla's Military Division Partners are here to help guide you and your family through the process.
We've compiled tools such as a Basic Housing Allowance calculator, frequently-asked questions, and tools to start your search, including a school ratings tool! We hope this site can be your one-stop resource for everything you need to know about the VA Loan home-buying process. If you're in the process of PCS-ing, just getting serious about purchasing a home, or just have a question that's not answered here, let us know. Contact Flotilla at (405) 977-0207, or email us at military@flotillarealty.com—we'll put you in touch with the right home-buying resource for you. |
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Basic Housing Allowance (BAH)
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The Basic Allowance for Housing (BAH) provides service members who are living in or permanently stationed in the United States with housing cost assistance. Military members serving overseas receive a different type of housing allowance called the Overseas Housing Allowance (OHA).
Military service members will see an average increase of 12.1% in the Basic Allowance in 2023. The increase is an average for all areas and actual rates will vary by military members’ duty station zip codes. Veterans using the Post-9/11 GI Bill receive BAH based on their school’s zip code. BAH covers 95% of housing expenses while service members pay the remaining 5% out of pocket. The out-of-pocket expense amounts incorporated in the 2023 BAH rates vary by grade and dependency status. The BAH calculated here works for all branches of the US military, including the Army, Navy, Air Force, Marines, and Coast Guard. |
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VA Buyer FAQs
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Does the VA require a minimum credit score?
NO. The VA does not have a minimum credit score requirement. Each lender may have a minimum credit score overlay depending on their acceptance of risk, however, credit score limits are not driven by the VA. If your credit score is marginal or too low, continue to shop lenders as they will all be different.
How do I apply for a VA-guaranteed loan?
You can apply for a VA loan with any mortgage lender that participates in the VA home loan program. At some point, you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.
How do I get a certificate of eligibility?
Complete a VA Form 26-1880: Request for a Certificate of Eligibility, and submit it to the Atlanta Eligibility Center along with proof of military service. In some cases it may be possible for VA to establish eligibility without your proof of service. However, to avoid any possible delays, it's best to provide such evidence.
Can my lender get my certificate of eligibility for me?
YES, it's called Web LGY. Most lenders have access to the Web LGY system. This internet-based application can establish eligibility, and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through Web LGY—only those for which VA has sufficient data in its records. However, veterans are encouraged to ask their lenders about this method of obtaining a certificate.
What is acceptable proof of military service?
How can I obtain proof of military service?
Standard Form 180: Request Pertaining to Military Records is used to apply for proof of military service regardless of whether you served on Regular Active Duty or in the Selected Reserve. This request form is NOT processed by VA. Rather, Standard Form 180 is completed and mailed to the appropriate custodian of military service records. Instructions are provided on the reverse of the form to assist in determining the correct forwarding address.
I have already obtained one VA loan. Can I get another one?
YES, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan, and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property.
In either case, to obtain restoration of eligibility, the veteran must send a completed VA Form 26-1880 to the Atlanta Eligibility Center. To prevent delays in processing, it is also advisable to include evidence that the prior loan has been paid in full and, if applicable, the property disposed of. This evidence can be in the form of a paid-in-full statement from the former lender or a copy of the HUD-1 Settlement Statement completed in connection with a sale of the property or refinance of the prior loan. I sold the property I obtained with my prior VA loan on an assumption. Can I get my eligibility restored to use for a new loan?
In this case the veteran's eligibility can be restored only if the qualified assumer is also an eligible veteran who is willing to substitute his or her available eligibility for that of the original veteran. Otherwise, the original veteran cannot have eligibility restored until the assumer has paid off the VA loan.
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My prior VA loan was assumed, the assumer defaulted on the loan, and VA paid a claim to the lender. VA said it wasn't my fault, and waived the debt. Now I need a new VA loan, but I am told that my used eligibility cannot be restored. Why?
OR…
My prior loan was foreclosed on, or I gave a deed in lieu of foreclosure, or the VA paid a compromise (partial) claim. Although I was released from liability on the loan and/or the debt was waived, I am told that I cannot have my used eligibility restored. Why?
OR…
My prior loan was foreclosed on, or I gave a deed in lieu of foreclosure, or the VA paid a compromise (partial) claim. Although I was released from liability on the loan and/or the debt was waived, I am told that I cannot have my used eligibility restored. Why?
In either case, although the veteran's debt was waived by VA, the government still suffered a loss on the loan. The law does not permit the used portion of the veteran's eligibility to be restored until the loss has been repaid in full.
Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don't own the property anymore. Can I still obtain a VA-guaranteed home loan?
YES, depending on the circumstances. If a veteran has already used a portion of his or her eligibility, and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought, and whether any down payment would be required.
Is the surviving spouse of a deceased veteran eligible for the home loan benefit?
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 home loan benefit. If you wish to make application for the home loan benefit as a surviving spouse, contact the Atlanta Eligibility Center. 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. For more information, contact the Atlanta Eligibility Center.
NOTE: Also, a surviving spouse who remarries on or after attaining age 57 and on or after December 16, 2003 may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003 and on or after attaining age 57 must apply no later than December 15, 2004 to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 16, 2003 that are received after December 15, 2004.
NOTE: Also, a surviving spouse who remarries on or after attaining age 57 and on or after December 16, 2003 may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003 and on or after attaining age 57 must apply no later than December 15, 2004 to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 16, 2003 that are received after December 15, 2004.
Are the children of a living or deceased veteran eligible for the home loan benefit?
NO. Children of an eligible veteran are not eligible for the home loan benefit.
Does the VA do an inspection of the home?
NO. The VA does not do a full inspection of the home, so it is highly recommended that the buyer hire a licensed home inspector prior to purchase. A VA appraiser will look for Minimum Property Requirements relating to safety, soundness, and sanitation. The appraiser can require repairs in order for the loan to be processed if they see a defect in any one of these three areas.
Is the seller required to accomplish repairs required by the appraiser?
NO. Either the buyer or seller may pay for the repair. Additionally, if the veteran disagrees with the requirement, and is willing to accept the home with the defect, they can request a waiver of the requirement from the VA regional loan center.
If the house doesn’t appraise, what are my options as a buyer?
If you and your REALTOR® disagree with the valuation, you can work with your lender to file a Reconsideration of Value with the VA. This typically takes a couple of weeks but can raise the value of the appraisal and the amount of mortgage you will be guaranteed. The other option is to renegotiate terms with the seller, and possibly bring cash to closing for the amount between the appraised value and the final sales price.
Can I roll my closing costs into the loan?
NO. Traditional closing costs can’t be rolled into the loan. If a funding fee (VA version of PMI) is required, it can be rolled in to the loan.
How much is the funding fee?
You can find that answer here: https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs
VA SELLERS • Myths & Misconceptions
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If you're a VA Loan home seller, we're prepared to guide you through the process. When it comes to appraisals, we know there are a lot of myths & misconceptions among sellers and even other real estate professionals.
Your Flotilla Military Division Partner can make sure you're taking full advantage all of your VA benefits when it's time to sell your home—such as VA loan assumption, using a VA Loan to purchase investment properties, knowing Tidewater and Reconsideration of Value processes when it comes to your home's appraisal, and closing cost requirements. If you don't find your question answered in the Seller FAQ, reach out to us at (405) 977-0207 or military@flotillarealty.com. |
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VA Seller FAQ
If I am a VA seller, can my VA loan be assumed?
Most likely YES. Before putting your home on the market, confirm with your mortgage service provider that it is assumable. If it is, it may be assumed by a VA or non-VA eligible buyer. However, if assumed by a non-VA eligible buyer, the VA seller’s eligibility stays tied up with the loan on the house you are selling. If a VA eligible buyer purchases the home, the VA seller can get their VA eligibility reinstated in full.
Are VA appraisals unfair and stringent?
NO. Actually, VA appraisals are one of the fairest appraisal processes of all of the loan products. They have a system called Tidewater which gives your listing REALTOR® 48 hours to provide data on comparable sales if the appraiser is not able to valuate your home at the sales price. Additionally, if the appraisal comes in below sales price, the veteran can contest the appraisal through the Reconsideration of Value process with the VA to bring the valuation closer to sales price if they so choose. The VA appraisal is the only process that allows this much input from the consumer and seller.
If my house under appraises, does it mean that I am stuck with that VA appraisal when I put it back on the market?
NO. Unlike FHA, the appraisal doesn’t stay with the home. It is tied to the veteran’s case number. So that particular veteran can’t get another appraisal on the same house. However, any other buyer, including a VA buyer, will need to have a new appraisal. https://www.benefits.va.gov/homeloans/documents/circulars/26_11_14.pdf
Will I have to pay for a lot of expensive appraisal repairs?
The VA does not require the seller to pay for any repairs. If Minimum Property Requirement Repairs are required, it can be negotiated between the buyer and seller. The buyer also has the right to ask the VA to waive the requirements. Appraisal Minimum Property Requirement Repairs should only apply to safe, sound, and sanitary defects.
Will I have to pay for the termite inspection?
NO. Oklahoma is one of nine states in which the veteran can pay for the termite inspection.
Will I have to pay for non-allowable VA closing cost for the buyer?
Typically, NO as long as the loan origination fees are below 1% which is the norm, although not required.
Since VA buyers are putting zero down, does that mean they are financially a weak buyer?
NO. VA buyers are typically one of the strongest and most stable buyers you can hope for. Job security is a major advantage with active duty buyers still serving, and many retired veterans have passive income with retirement and disability.
In 2021, the average FICO score for a VA loan was 722 which is considered a GOOD credit score. Most veterans put $0 down because it is a benefit they earned for serving their country. It doesn’t necessarily mean they don’t have the money, more likely they don’t want to take it out of investments to tie it up in a house.
In 2021, the average FICO score for a VA loan was 722 which is considered a GOOD credit score. Most veterans put $0 down because it is a benefit they earned for serving their country. It doesn’t necessarily mean they don’t have the money, more likely they don’t want to take it out of investments to tie it up in a house.
REALTORS® • VA Myths & Misconceptions
Did You Know?
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