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Certificate of Reasonable Value For a VA: How To, Templates & Examples

Writing to get a certificate of reasonable value for VA loan

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Looking for a loan to buy a house, you will need to consider a lot of things before applying for one. If you are a veteran planning to use your VA or Veteran Affairs, you will need to look into the VA loan facility and how to go about it. Read through the article to understand the process of getting a certificate of reasonable value for your VA loan.

Who is a veteran?

Any professional from the field of army, navy or air service has worked and served, and was discharged of released under conditions not dishonorable is considered to be a veteran. This definition of a veteran clearly states that he is a person having served his professional life and career for the country by serving in the armed forces, or in navy. He has retired honorably is a Veteran.

What is a VA loan and what does it comprise?

The mortgage loan issued to the veteran by the United States Veteran Affairs department is considered as a VA loan. As the name suggests, this facility is only available for the US veterans. As discussed in the previous section, a veteran is a person who has served his/her country through army, navy, or air force.

A VA loan was designed and intended for eligible veterans who can purchase properties without the hassle of having to pay a down-payment. This loan facility allows the veterans to get higher loan amounts than any traditional financial institute may issue. Also, when you opt for a normal loan, any financial institute would first look into your credit score. This is not the same with Veteran Affairs Loan. Here your credit score is not the primary source of getting you entitled to a loan. But a minimum credit score of 620 is what is expected.

There are different ways to calculate the entitlement for your VA loan. You can go through the given points below to understand it.

Have you purchased a previous home using your VA loan, and that very loan was paid off by the new owners of the house? Then the full entitlement of VA loan gets restored for you.

On the occasion where you have sold your house to someone else and have allowed them to pay off your VA loan, the entire entitled loan amount gets restored to you.

Lastly, if you are renting your home out to someone, then you may have partial entitlement available at your disposal to be used.

Writing a letter to get certificate of reasonable value for VA Loan with a pen

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Why is a VA loan so important?

Not everyone around you will be aware of the many benefits offered by opting for a VA loan. Here are a few benefits you can get and make use of while opting for a VA loan.

·        The basic need to make a down payment for your loan is not there when you apply for a VA loan. In conventional home loans, you would have noticed, the financial instituted ask for a minimum of 5-3.5% of down-payment and for mortgage too they require a down payment. While opting for a VA loan you tend to eliminate completely the need for any down payments.

·        One of the best part about VA loans is that there is no mortgage insurance involved. As you know, for conventional home loans, you have to take up annual mortgage insurance, and paying off the interest at times becomes more of a hassle. When opting for a VA loan, you do away with the hassle of an additional payment as there is no mortgage insurance to begin with.

·        Since the credit score for a VA loan has been set at 620, it is considered to be a fair credit score range. Other financial institutes have high credit benchmark.

·        The DTI ratios for a VA loan are comparatively higher than what you get while opting for a home loan from a financial institute. This means normally a lender would not want you to spend more than 41%$ of your monthly income for debts. But when it comes to VA loans, a lender will be willing to go higher up to 55% even. But then it is subject to your credit score and income benchmarks.

·        There is no hidden costs or fees involved in VA loan. The limit to different fees and closing cost are set to a limit for VA loans. This helps a lot when it comes to closing your VA loan as you are already aware of the closing cost.

·        A VA loan can even be secured in 2 years once your name is removed from short sale, foreclosure, or bankruptcy.

What does a certificate of reasonable value comprise?

When a veteran opts for a VA loan, there is a Certificate of Reasonable Value involved. This certificate of reasonable value helps in determining and understanding the real value of the property to authorize the loan. The United States Veteran Affairs department have set the upper cap for giving a VA Loan. And to understand and evaluate this value of the property, a Certificate of Reasonable Value is very much required.

Based on the Certificate of Reasonable Value, a veteran will get a VA loan to buy a property. This Certificate of Reasonable value shows the maximum value of the property in question and helps in determining the loan amount which needs to be disbursed to the veteran. The evaluation of the property however needs to be done by the Department of VA or Veteran Affairs only.

How to write a certificate of reasonable value for VA Loan?

Once you have found the property you want to invest in, you need to inform the Department of VA or Veteran Affairs to issue a certificate of reasonable value. This very certificate will help get the maximum loan for the property. The department will evaluate the property and based on the evaluation; the loan amount will be disbursed to you. All this will be possible when you write a certificate of reasonable value of VA loan letter to the Department of VA or Veteran Affairs.

While writing such a professional letter, you need to keep the below points in mind.

·        Always print the letter in A4 size paper.

·        Avoid lengthy sentences. Keep the letter short and informative.

·        Ensure to provide your contact information.

·        Do not forget to include the address of the new property you want to be evaluated.

·        Write the subject at the top of the letter so that it becomes easier for the recipient to understand the contents of the letter.

·        Mention the date in dd/mm/yy format only.

·        Look for grammatical errors, spell checks and typos.

·        Keep the letter professional.

·        Always type the letter so that it appears to be neat and presentable.

·        If you have any queries, address them in the letter which may be answered later on.

·        Keep your documents handy as they may demand to see and understand your Veteran status.

·        Always sign the letter in hand

Writing to get a certificate of reasonable value for VA loan

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Certificate of reasonable value for VA loan Templates

Following the above points can help you write a decent letter for certificate of reasonable value. You may also get confused as what should be the content of the letter. Here are a few templates which can be useful and handy for you. The templates are designed in a way you can directly copy and paste from them or you can make your own changes and get them printed directly.

Template 1

Requesting for Certificate of Reasonable Value for VA Loan (Subject on top)

Department of Veteran Affairs

(Address of the department)

Date: dd/mm/yy

Dear Sir/Madam,

I am, (your full name) a retired veteran from (Army/Navy/Airforce) looking for a VA loan to buy a property.

I would humbly request you to look into the property and help me get the Certificate of Reasonable Value so that I get an approval for my VA loan application.

The address of the property which needs to be evaluated is as under:

(provide complete address for evaluation).

Also, do let me know if you need any additional documents for the same. I have attached a copy of my ex-service status for your kind perusal.

I have also mentioned my contact information for your kind perusal. Please feel free to contact for any further concerns and queries.

Thanking you.

Yours faithfully,

(your full name)

(your current address)

(your contact number)

(your email id)

Sample # 1 How to Get a Certificate of Reasonable Value For a VA

Template 2

Dear Sir/Madam,

I, (your full name), an ex-Army veteran, regiment (mention your regiment name) would like to apply for a VA loan.

I have selected a property at (provide the property address to be evaluated) and would request you to do an evaluation. Also, kindly issue a certificate of reasonable value at the earliest so that my VA loan is approved.

I have attached a copy of my military service, along with the property documents for your kind perusal.

Kindly contact if you need any additional information or document. My contact information is provided as under.

Thanks and regards,

(your full name)

(your current address)

(your contact number)

(your email id)

Sample # 2 How to Get a Certificate of Reasonable Value For a VA

Template 3

Dear Sir/Madam,

I, (your full name), have served for the US Navy from (mention the years) as (your post). I am proud of have been able to serve my nation to the best of my abilities.

For now, I have found a property at (provide address of the property which needs to be evaluated) and would like to make a purchase. I will also need to apply for a VA loan to get the desired finances. Hence would request your team to go and evaluate the property and issue me a certificate of reasonable value for getting a VA loan. Would appreciate your patience and cooperation in this regards.

I have attached a copy of my service in the US Navy along with a copy of the property documents for your kind perusal. Do let me know if any additional documents are required for the same. My contact information is also listed as under.

Thanking you.

Yours faithfully,

(your full name)

(your current address)

(your contact number)

(your email id)

Sample # 3 How to Get a Certificate of Reasonable Value For a VA

Template 4

Dear Sir/Madam,

I, your complete name, am proud to have been a part of the US Army regiment (mention your regiment number) and to be able to serve my country to the best of abilities. Now I am a retired US veteran and would like to make use of the benefit of a VA loan.

I am grateful to the government to have given us such an opportunity where we can go ahead and take a VA loan for the property of our liking. I too have selected a property at (provide the complete address) and would request for you to evaluate at the earliest. Once you issue the certificate of reasonable value to me, I will forward the same to get my VA loan approval.

I would appreciate your patience and cooperation in helping me get the certificate of reasonable value. Please feel free to contact me for any further concerns and queries.

Documents attached with the letter,

a.     Property document

b.     US Army service official papers

Waiting for your response.

Thanking you.

Yours faithfully,

(your full name)

(your current address)

(your contact number)

(your email id)

Sample # 4 How to Get a Certificate of Reasonable Value For a VA

Template 5

Dear Sir / Madam,

I, (your full name) have served in the US Seals from (mention the years) as a (mention your designation). Now I am a retired veteran looking for a decent home to settle in.

I have heard of the benefits of a VA loan and would like to apply for the same.

The property address for evaluation is as under:

(Give complete address)

Kindly let me know what other documents besides my official service period and property documents are required to further the process.

Waiting for your response.

Thanks and regards,

(your full name)

(your current address)

(your contact number)

(your email id)

Sample # 5 How to Get a Certificate of Reasonable Value For a VA

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