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VA Loans
More than 30 million veterans and service personnel are eligible for VA financing. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement. California Veterans may also be eligible for a Cal-Vet Loan. Before arranging for a new mortgage to finance a home purchase, veterans should check with us to review their options.
No down payment is required for most buyers.
Loan maximum up to 100 percent (plus the VA funding fee) of the VA-established reasonable value of the property. VA Loans may not exceed $417,000
No monthly mortgage insurance premium to pay.
Limitations on buyer's closing costs.
Traditional Fixed Rate loans
The VA loan is an assumable mortgage, subject to VA approval of the assumer's credit. The borrower may prepay loan without penalty.
VA performs personal loan servicing and offers financial counseling to help veterans avoid losing their homes during temporary financial difficulties.VA Loan Eligibility
Most veterans are eligible. Call us and we will arrange to get your "Certificate of Entitlement" for your VA home loan.
Purpose of VA loans
To buy a home, including townhouse or condominium unit, in a VA-approved project. A refinance loan may not exceed 90 percent of the appraised value plus the costs of the improvements. Check with a lender or VA for details. To refinance an existing home loan up to 90 percent of the VA-established reasonable value or to refinance an existing VA loan to reduce the interest rate.
Why use a VA loan
The more you know about our home loan program, the more you will realize how little "red tape" there really is in getting a VA loan. These loans are often made without any down payment at all and frequently offer lower interest rates than ordinarily available with other kinds of loans. Aside from the veteran's certificate of eligibility and the VA-assigned appraisal, the application process is not much different than any other type of mortgage loan.
We do not recommend a VA loan if you have a 20% down payment. The VA funding fee is an inefficient use of you money and if you can avoid it then we recommend that you use conventional financing.
APPLICATION
Contact us for an appointment. We usually fill out the application in our office and run the credit report immediately. Normally, we can tell you whether the loan will be approved during that meeting.
VA Funding Fee.
Purchase and Construction Loans
|
Type of Veteran |
Down Payment |
Percentage for First Time Use |
Percentage for Subsequent Use |
|
Regular Military |
None 5% or more (up to 10%) 10% or more |
2.15% 1.50% 1.25% |
3.35%* 1.50% 1.25% |
|
Reserves/National Guard |
None 5% or more (up to 10%) 10% or more |
2.40% 1.75% 1.50% |
3.35%* 1.75% 1.50% |
* The higher subsequent use fee does not apply if the veteran's only prior use of entitlement was for a manufactured home loan.
Cash Out Refinance Loans
|
Type of Veteran |
Percentage for First Time Use |
Percentage for Subsequent Use |
|
Regular Military |
2.15% |
3.35%* |
|
Reserves/National Guard |
2.40% |
3.35%* |
* The higher subsequent use fee does not apply if the veteran's only prior use of entitlement was for a manufactured home loan.
Other Types of Loans
|
Type of Loan |
Percentage for First Time & Subsequent Use |
|
Interest Rate Reduction Refinancing Loans |
0.50% |
|
Manufactured Home Loans** |
1.00% |
** VA definition of Manufactured Home Loan "is a mobile home (wheels) not permanently affixed to a foundation". Any other type of manufactured home permanently fixed on a foundation is classified as a SFR and would be subject to the funding fee percentage appropriate to the veteran's particular circumstances.
Funding Fee Exemption
The following persons are except from paying the funding fee:
· Veterans receiving VA compensation for service-connected disabilities.
· Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay.
· Surviving spouses of veterans who died in service or from service-connected disabilities (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using their own entitlement on the loan).
NEED MORE INFORMATION?
Call us, we're happy to help.
858 495-1888