The CRV (Certificate
of Reasonable Value) is based
on an appraiser's estimate of the value of the property to be purchased.
Since the loan amount may not exceed the CRV, the first step in
getting a VA home loan is usually to request an appraisal. Anyone
(buyer, seller, real estate personnel or lender) can request a VA
(Veteran's Administration) appraisal
by completing VA Form 26-1805, "Request for Determination of
the form, it can either be mailed to the Loan Guaranty Division
at the nearest VA office for processing, or an appraisal can be
requested by telephoning the Loan Guaranty Division for assignment
of an appraiser. The local VA office may be contacted for information
concerning its assignment procedures.
will send a bill for his or her services to the requester, according
to a fee schedule approved by VA. To simplify things, VA and HUD/FHA
(Department of Housing and Urban Development/Federal Housing Administration)
use the same appraisal forms. Also, if the property was recently
appraised under the HUD procedure, under certain limited circumstances,
the HUD conditional commitment can be converted to a VA CRV. The
local VA office can explain how this is done.
It is important
to recognize that while the VA appraisal estimates the value of
the property, it is not an inspection and does not
guarantee that the house is free of defects. Homebuyers are encouraged
to carefully inspect the property themselves, or to hire a reputable
inspection firm to inspect the property.
VA Home Loan
process for VA financing is no different from any other type of
loan. In fact, the VA home loan application form is the same as
that used for HUD/FHA and conventional loans. The mortgage lender
verifies the applicant's income and assets, and obtains a credit
report to see that other obligations are being paid on time.
If all is well,
and the appraised value of the property is enough to cover the loan
needed, the lender, in most instances, can close the loan under
VA's automatic procedure. Only about 10 percent of VA loan applications
have to be submitted to an office for VA home loan approval before
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