VA Loan & buying a Bank owned house...?

Hi Violet,

Below are some information that I found on VA official website.

Other benefits of using VA's program (other than the 100% financing of the sales price) include:

Loans are assumable, provided the person assuming the loan is qualified.

~Veterans' closing costs are limited by VA.
~Additional assistance is offered by VA should veterans have problems making their home loan payments in the future.
~Prepayment of the loan without a penalty.

Here are some quick facts you may find useful concerning purchase transactions:

~VA does not have a maximum loan amount. However, lenders do sell loans on the secondary mortgage market, so they will generally limit loans to $417,000 ($625,500 in Hawaii, Guam, Alaska and U.S. Virgin Islands) with no down payment. With a down payment, loans may exceed these amounts.
~The veteran does have to qualify income and credit wise.
~The veteran does have to occupy the home as their primary residence.
~The veteran does not have to be a first time home buyer and may reuse his/her benefit.
~The lender, not VA, sets the interest rate and discount points, so they may vary from lender to lender.
~There is no private mortgage insurance, but VA does charge an up front VA funding fee, which may be financed. ~The exception to this is that if a veteran is in receipt of VA service connect disability payments each month, he or she does not have to pay a VA funding fee.
~The seller can pay for closing costs. There is a requirement that seller concessions do not exceed 4%, but only certain items are considered as part of the concession; i.e., payment of pre-paids, VA funding fee, payoff of credit balances or judgments on behalf of the veteran, funds for temporary buydowns (not discount points).
~The veteran is not allowed to pay for the wood destroying insect (termite) report; it is generally paid by the seller.
VA does not approve the majority of loans. The majority of transactions are handled directly by the lender with little VA intervention.