With Phoenix VA mortgage loans, you are allowed to borrow against either the purchase of an existing Phoenix home or for the construction of a new Phoenix home.
However, Phoenix VA mortgage loans are for primary residences only; you cannot purchase an investment property or second home with a Phoenix VA home loan as these property types are not eligible for VA financing.
Once you have found a home, you will need to have it appraised for a Phoenix VA home loan. Only a VA-approved appraiser is allowed to perform appraisals for VA home loans. A VA appraisal involves a thorough analysis of the home and property to determine what the current market of the home and property is. A VA appraisal is highly geared towards reporting any defects involving safety or security of the home.
Here is a list of things to consider when shopping for a new home:
• The appraiser needs to inspect both the inside and the outside of the house. If the house in question is being constructed, the appraiser still needs to analyze the property and construction site.
• The official appraisal report will contain a list of “observable repairs that need to be completed.”
• This report will also contain a list of “customer preference items to be installed.”
• A few small issues with the property won’t immediately disqualify it, but a lot of small issues or a few big issues may.
Our article The VA Loan Appraisal Process gives a fully detailed explanation of the process.
VA loan limits are also an important factor when it comes to borrowing for a home loan. In most veteran loan scenarios, the VA guarantees up to 25% of the total amount of the loan up to the VA loan limit in your county – which, in much of the US, is $417,000.
To check what the VA county loan limits are for each county in the United States, you can visit the U.S. Department of Veterans Affairs at their loan limit website. For counties that are not listed on the website, the official VA loan limit is automatically set at $417,000.
If the value of the home you want to purchase is greater than your county loan limit, you may still be eligible to utilize a Phoenix VA home loan. It is possible to get what is referred to as a “VA Jumbo Loan,” which will allow you to take out a VA loan on a home valued above the applicable county loan limit. However, with VA Jumbo Loans, the VA mandates that the borrower pay 25% of the difference between the cost of the loan and the VA county loan limit. At the same time, the VA would still guarantee 25% of the county loan limit.
For more information on VA jumbo loans, please read our article titled Are There VA Jumbo Loans Available?
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