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. It very well may be that a home without a heating system in Phoenix, AZ — where the average low temperature is only 63 degrees Fahrenheit — could be rejected for a loan by the VA. 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 you are 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 Finance Agency (FHFA), and a “jumbo loan” is a mortgage that
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