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VA Loans in California

Getting a home loan in California can sometimes be a pain, especially if your credit is less than perfect. But if you are a California veteran and need a home loan, you have other options. As a veteran you have certain benefits that normal citizens don't have, one of these is veterans' loans. These loans are a way for the country to show the appreciation for what you've done, and can be very beneficial to ex-military personnel. Here are a few things you should know about these loans.

First off, your time in the military will be considered when you apply for the loan. If you've served an adequate amount of time, usually between ninety and one hundred and eighty days of active duty, depending on the situation, you can qualify for the loan. Your form of discharge will also be considered. If you have the black mark of a dishonorable discharge, you'll probably be declined in your loan request. 


The next important factor of any loan is your credit. With a traditional loan your credit score usually determines whether or not you can get the loan, and the rate of interest you'll be paying. Veteran's loans are a little bit different. Rather than looking at your overall score, they will look at the past twelve months of payments. If they were made in a timely fashion, chances are you'll get a better rate and qualify more easily for the loan. Veterans' loans are great ways to get the money you need if you've had financial difficulties in the past and are still suffering from the fallout.

Another benefit of veterans' loans in California is that you don't have to give money down. So if you're looking at a two hundred thousand dollar home and can't make the ten percent down payment, you won't have to. Also, you'll save money because you won't be paying a monthly insurance premium on the loan. Typical loans require this insurance because it enables the lending institution to get some of the money in the event of a default. As a veteran you are backed by the VA entitlement, which is simply a guarantee made by the Department of Veteran's Affairs on part of your loan. If you decide to get a Veteran's loan, make sure you ask about this guarantee.

Many veterans have benefited greatly from this type of loan. You may be next. Do a bit of research and compare the pros and cons of both loans, Veterans and traditional, you may just find that this will work better for your needs.

Veterans Loans in California Benefits

• Eligible homebuyers are not required to have a down payment in most cases - typically cited as the greatest VA loan benefit. Conventional loans generally require a 5 percent down payment, and FHA loans require 3.5 percent.

• No monthly mortgage insurance premiums or PMI to pay. FHA loans come with both an upfront and an annual mortgage insurance charge. Conventional buyers typically need to pay for private mortgage insurance unless they’re making a down payment of 20 percent or more.

• Limitation on buyer's closing costs. Sellers can pay all of a buyer’s loan-related closing costs and up to 4 percent in concessions.

• Lower average interest rates than other loan types. VA loans continue to have the lowest average interest rates of all loan types.

• No prepayment penalties. VA buyers can pay off a loan early without any financial penalties.

• Two refinance options. The VA loan program allows homeowners with existing VA loans the option to lower their monthly payment with a new interest rate. Eligible homeowners who financed their property with a loan other than a VA loan can refinance into the VA loan program.

• Second tier entitlement. 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.

• An assumable mortgage, typically subject to VA and/or lender approval. You may be able to have someone take over your mortgage payment, which can be a big benefit in an environment of rising interest rates.

• Foreclosure avoidance advocacy from the VA loan program. The VA has staff members who advocate on behalf of homeowners to find alternatives to foreclosure.

VA Loans Requirements in California

• The applicant must be an eligible veteran who has available entitlement.
• The loan must be for an eligible purpose.
• The veteran must occupy or intend to occupy the property as a home within a reasonable period of time after closing the loan. There are exceptions and workarounds in some cases. Talk with a lender about your particular occupancy situation.
• The veteran must be a satisfactory credit risk.
• The income of the veteran and spouse, if any, must be shown to be stable and sufficient to meet the mortgage payments, cover the costs of owning a home, take care of other obligations and expenses, and 
• have enough left over for family support.

To see if you qualify for a VA home loan in California please contact Nathan Rufty at 909-503-5600