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Unformatted text preview: in dealing with a large government agency are disadvantages unless the lender is qualified to process DVA automatics, which are in– house approval programs. Property Standards – The property must meet strict clearance requirements, such as pest control inspection and code requirements. The DVA also requires repairs that it feels are necessary. In some cases, the DVA requires a certification from the city or county that the property meets current building codes. Lender Limits – DVA loans are usually not more than four times the guarantee, or $240,000 without a down payment. DVA itself does not prescribe a maximum, but lenders want saleable loans, hence their policy of limiting veteran loans to four times the $60,000 DVA guarantee, according to FNMA/FHLMC “market” requirements. 5-44 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 5: GOVERNMENT PARTICIPATION & BACKED LOANS CAL–VET LOANS
The Cal–Vet program is administered by the California Department of Veterans Affairs, Division of Farms and Home Purchases. Under the California Veterans Farm and Home Purchase Act, the state sells bonds to raise funds to help veterans purchase a “farm or home,” including mobile home, townhouse, or condominium (but not income properties, multiple units, or prefab or modular homes). Applicants may appoint their own real estate agent to act on their behalf, or apply through a Cal–Vet certified mortgage broker and pay a one–point loan origination fee (which can go to the mortgage broker). The money that funds the loans is obtained from the sale of general obligation bonds and revenue bonds. There is also a program using what are designated as “unrestricted funds” for qualified veterans with wartime service. This can be used only as funds are available. ADMINISTRATION
The program is administered by the California Department of Veterans Affairs. DVA appraises properties (may accept FHA or DVA appraisal...
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- Spring '10