What is a VA Loan?
The VA mortgage loans are one of the best and safest methods to use when buying a home. Now even active duty personnel can qualify. If you are a Disabled Veteran, you may qualify for additional benefits on a VA home mortgage loan.
The Veterans Benefit Act, signed recently increased the VA loan limit to $417,000 for a loan with no money down. It also increased the eligibility for Veterans and active duty personnel and increased the benefits to Disabled Veterans.
Benefits of VA Loans
- The VA Mortgage Loans is guaranteed for no money down up to $417,000
- No monthly Home Owner's Insurance is required
- Many VA Mortgage Loans are assumable
- It is easier to qualify for a VA Loan than a conventional loan
- VA Mortgage Loans can be refinanced
No Money Down Up to $417,000
You do not have to put any money down to qualify for a VA Home Mortgage Loan for up to $417,000. If the seller agrees to pay the closing costs, you may be able to purchase the home with no out of pocket costs. The loan and sales contract can be set up so that the VA Home Mortgage Loan cover 100% of the selling price and the seller covers the closing cost.
The VA Funding Fee
The Veterans Administration assesses a Funding Fee to all VA loans between .5% and 3. In an FHA mortgage the customer must put at least 3.5% of the loan amount. The fee is added into the amount of the loan to be paid over the life of your VA home mortgage loan. The VA Funding Fee replaces the much higher priced Mortgage Insurance required when you get a conventional home loan. If you are a Disabled Veteran, you may qualify to get the fee waived completely.
Assumable VA Mortgage Loans
VA loans are also assumable. If the person assuming the mortgage is a veteran with VA eligibility, the original veteran will not be giving up the amount of eligibility that they used to get the loan at the beginning. Veterans should use great care and closely investigate the terms of an assumption before allowing someone to assume their mortgage. It is too great a benefit to give up.
Qualifying for a VA Mortgage Loan
The VA offers excellent qualifying standards. The VA does not use credit scoring in their analysis of the loan. Even if you have experienced some financial difficulties in your life that caused your scores to be low but have maintained a good payment record over the past year or so, you may qualify for a VA mortgage loan. This can be a tremendous savings compared to the cost of conventional loans when the borrower's credit scores are low.
"Derric does beyond! When I started looking for my first home with a small budget and not sufficient credit score, he looked for all possible options. In addition, I was a picky buyer, (I still am today), I took about 2 years to get one. He was beyond helpful in my loooong home search! Even after the purchase is closed his support is continued and I got a great refinance few yrs later."
Virginia C. San Diego, Ca
"Purchased my first single family home with Derric's help in November 2015 with a VA 30 year fixed loan at a very low rate and great terms. The terms and rate were better than the USAA and Navy Federal loans I had been researching. It was refreshing to deal with someone honest and straightforward. Derric was always available and his turn around on paperwork is appreciated."
Jered S. San Diego, Ca
"As a real estate agent, it's important for me that my homebuyers and refi clients are taken care of. I've worked with other loan officers but nobody can match the kind of service Derric gives to my clients. He goes out of his way to make sure my clients understand the process and status so my clients can make better decision. On top of that, he is pretty honest and will tell you the truth of where your loan stands, no sugar coating."
Jane M. San Diego, Ca
"Derric helped with my home loan and did a great job. I had to do two separate loans and he coordinated them to perfection and the deal closed on time with no problems. I now own my very first home and am just thrilled. Dealing with big banks is a major hassle and Derric had it under control the whole time and dealt with every hassle that the bank threw at him. I would definitely use him again and highly recommend him. Awesome guy."
Stephen B. San Diego, Ca
C2 Financial - San Diego Home Loans
With over 65 years experience in the mortgage industry C2 Financial has some of San Diego's top mortgage consultants, and Derric is one of their best. In 2016, C2 closed more than 2.5 billion in home loans and is rated top 50 mortgage companies to work for by Mortgage Executive Magazine.