However, officers who have been issued a dishonorable discharge are not eligible for the loan. Loan proceeds can be used to purchase single-family homes, condominiums, multi-unit properties, manufactured homes, and new construction. The VA does not originate loans; however, the agency sets the rules for who may qualify and issues loan guidelines and requirements. As with FHA loans, the VA is not a loan servicer, but financially insures loans that qualify under the program. Many VA requirements are similar to the requirements for the FHA program; however there are significant differences. For example, the VA makes a final call on whether a home needs a heating system, even in locations where heating systems are not necessary. The VA also has minimum property requirements for the safety, sanitation, and structural integrity of the home. These requirements frequently change, so I keep up-to-date as best as I can with those fluctuating requirements. VA loans do have similar requirements to FHA loans for things like septic tanks and water tests when a home is on a private well or private water system. If a buyer is going to apply for a VA loan, I’ll do a quick check and make sure the property will not have issues with the minimum property requirements, just like I would for an FHA loan.
Jumbo Loan Programs
We previously went over jumbo mortgages in a previous chapter, but it’s worth going over them again in more detail. In case you don’t remember, a “conforming loan” is one that is under a certain price threshold as determined by the Federal Housing
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