What The VA Appraisal Can’t Do

If you are planning on using your VA certificate of eligibility to buy a house, or even refinance your current mortgage, your homework should consist of VA Fixed Rate, Adjustable Rate and VA Hybrid reviews to ensure that you pick the right mortgage for your situation. But as great as the VA loan program is, there are still some areas to pay attention to as you look at a VA Home Purchase.

  • Defects
  • Inspections
  • Negotiations


The VA, just like Fannie Mae and Freddie Mac cannot guarantee that the home you purchase is free of defects or that it will be free of defects in the future. When you work through the process of getting your mortgage you will have to get a VA appraisal. The VA appraisal is fairly rigid when it comes to what the appraiser is looking for when they evaluate the value of the home. But the appraiser and the appraisal are not an inspection of the home when it comes to safety, engineering, and pest related problems. The appraiser’s job is to determine the market value of the home.


You are not stuck however because it is very customary for home buyers to order inspections of homes as they go through the home buying process. It is in your best interest to get at the very least a home inspection. You could also get a roof inspection, a termite/pest inspection, and engineering inspection, a heating and cooling unit inspection to name a few.


With it being customary for these types of inspections, most sellers will permit you to arrange and pay for a variety of inspections. Sellers in most cases will also be willing to negotiate price variances if your inspections discover repairs.

It’s Up To You

If it isn’t clear already, not only with a VA loan, but with all conventional loan programs it is your responsibility as a buyer to order some type of property home inspection to assure to yourself that the home you are buying is all that it is cracked up to be.

Arizona: A Popular Place To Live For Veterans

Ok, so there are several hot spots in Arizona (literally) and pretty much everyone knows that.

But did you know that there are also several “hot spots” in the state for Veterans to live?

Let’s just pick a few – and all of them have homes that you can finance with an Arizona VA loan.

Gilbert is one of the fastest growing cities in the East Valley and is popular for many Veterans who have families. The population there is growing and you can easily find a home that meets the criteria for a Gilbert AZ VA loan.

Mesa has long been popular – and prior to the Gilbert growth explosion, Mesa was a hot area for many Veterans with the airfield so close as well as a major Boeing factory. And yes, there are also plenty of homes that you can easily finance with a Mesa AZ VA loan because home values are not through-the-roof.

Chandler is a sister city to Gilbert and is popular with Veterans who have retired – not to mention some of the Veterans who now work at any one of the high-tech facilities at companies like Intel. It is a little harder to find a home that meets guidelines of a VA loan in Chandler, but it isn’t extremely difficult.

If you are a Veteran and thinking about moving to Arizona or just moving from one city to another in Arizona, be sure to ask your loan officer about your Arizona VA loan options… it is one of the best ways to finance your home.

Self Employment and Veteran Home Loans, Exact Science or Judgement Call?

Self Employment and Veteran Home Loans, Exact Science or Judgement Call?

It does surprise me how much I have heard this topic yucked up around town. Yes, self employed vets can qualify for veteran home loans as long as certain guidelines are met. We’re going to cover the biggest guideline of them all – the 2 year rule.

First and foremost, directly from the VA Lender’s Handbook, VA Pamphlet 26-7 Revised, Chapter 4: Credit Underwriting, the VA states:

Income analysis is not an exact science. It requires the lender to underwrite each loan on a case-by-case basis, using: judgement, common sense and flexibility (when warranted)

With this said, if you are a vet or otherwise are eligible for a veteran home loan and are self employed then there are some requirements you need to know about if you plan to use your eligibility for a veteran home loan.

  • Stable Income
  • Uncertainties
  • The Kicker

Stable Income

The most general guideline for being self employed and veteran home loans is that an applicant needs to show stable income. Stable income is typically shown by the income received over a two year period. I like to call this the 2 year employment rule. If you pay attention to mortgage loan requirements you’ll see other 2 year rules in play for other loan requirements. What I am talking about in this post is only relavant to veteran home loans and places.

It is because of the broad and misunderstood interpretation of what stable income means that many people say that if you haven’t been self employed for 2 years or more then you won’t qualify for a mortgage as a self employed individual.


The VA stipulates that income from self employment is considered stable when the applicant has been in business for at least 2 years. But if we recall the earlier info from the VA Lenders Handbook from above that says that income analysis is not an exact science we get ourselves into the gray area about being self employed and qualifying for a veteran home loan.

The Kicker

The kicker to the steadfast rule about 2 years needed for self employment is that if you have been self employed for more than 1 year but less than 2 and you have previous related employment you may get an approval. You may also get an exception to the 2 year rule if you received extensive specialized training in your industry/profession.

The VA does state that self employment of less than one year rarely qualifies. They go on to suggest that more “in-depth development is required for a conclusion of stable income on less than 1 year cases.”

It’s Up To You

With both of these conditions in mind, and the idea that there is no exact science to analyzing income, it will be on you to prove to the VA loan underwriter why your income should be considered stable if you have been self employed for less than 2 years if and when you apply for a veteran home loan.

This site is for informational purposes only. It is not sponsored or in any way affiliated with the government. If you are in need of a mortgage loan, consult with a licensed mortgage professional. All fair housing and equal housing opportunity laws apply when applying for a mortgage or buying a home. Copyright 2012.