Veterans Administration (VA) Program

Veterans Administration (VA) Mortgage Guarantee Program

Brief Description: The VA guarantee program provides lending opportunities to eligible veterans. The loans have no down payment requirements and partner well with most closing cost assistance in the MBOH regular bond and set-aside loan programs.

  • Borrower Eligibility Criteria:
    Income limits (click here )
    First-time homebuyer(s); waived for targeted area
    Home must be primary residence for the life of the loan
    No asset limitations
    Must be certified eligible by the VA
    Full guarantee only with no prior entitlements used and not restored

  • Property Criteria:
     Purchase Price Limit of $237,031
    Single Family home, townhouse, or condo, existing home or new construction
    Manufactured home on permanent foundation allowed if detitled and post -1976
    Limit of 15% use for Business
    Land limited to 35% of value of property
    Maximum parcel size of 40 acres, with no subdivision of land possible

  • Loan Criteria:
     Loan limit of $237,031
    Rates depend upon finance option
    30-year fixed rate loan
    IRS recapture potential depending upon program used
    Buy existing or build new home
    Hazard insurance $1,000 deductible all peril; escrow for tax and insurance

  • Underwriting Criteria:
    Per VA guidelines
    Need any multi-lot/repair issues on appraisal addressed before closing

  • Down payment Sources:
    Must be approved for use with VA financing

  • Mortgage Insurance Information:
    Requires VA Certificate of Eligibility

  • Lender Reservation and loan info:
    No origination or discount points, MBOH purchases loan at 102%
    Rate can be reduced 0.125% if buyer chooses to pay 2 points at closing and MBOH purchases loan at par
    Reservations valid 120 days for existing homes/ 180 days for new construction
    0.25% fee charged for extensions, 0.50% for cancellation
    Need any multi-lot/repair issues on appraisal addressed before closing

Reservations Process

PREFER
Input on Lender On Line web based reservation system

OR
Fax reservation to MBOH including:
Reservation cover sheet and required documentation listed

updated 5/10/2007

This is a summary of the MBOH program only. For a complete copy of the terms and conditions see Mortgage Purchase and Servicing Guide and the Terms and Conditions of the set-aside