Explore the Advantages of VA Loans
As mortgage professionals, we are truly pleased to be able to provide VA-guaranteed home loans to clients in Lake Forest, Anaheim, and Santa Ana, CA. Known in short as VA loans, these nonconventional loans are available to qualified veterans, servicemembers, reservists, surviving spouses of veterans and others who meet VA-mandated approval requirements. When compared with conventional financing and other nonconventional loans, VA loans have some unique advantages, like no down payment requirement and easy credit qualifying. If you have more questions about VA loans or are ready to get a free quote, speak with a professional at West Coast Realty Services and get the answers you need.
VA Loan Background
VA loans are funded by private lenders and insured by the U.S. Veterans Benefits Administration. The VA guaranty program was established to help encourage private lenders to finance more veterans and others who have served the country. Because the federal government agrees to reimburse lenders if a VA borrower defaults, lenders take on less risk and thus approve a wider range of clients. VA loans are one of several nonconventional loans, each of which was created to help a different segment of the population secure financing.
VA loans can be used for purchase, for purchase and renovation, to purchase a lot or certain approved manufactured homes. If you have an existing VA loan, you can also refinance to a lower interest rate with the VA interest rate reduction refinance loan (VA IRRRL).
VA Loan Limits
While the VA does not limit the amount which you can borrow in a VA loan, it will only guarantee loans up to a certain value based on where you live. In Orange County, the limit is $679,650. You may still get approved for a VA loan that exceeds that amount, but you will be responsible a down payment of 20% of the difference between the limit and the value of your loan.
VA Loan Benefits
Consider the advantages of the VA loan guaranty program, including:
- 0% down payment
- No mortgage insurance required
- Limited closing costs paid by the borrower
- Financial counseling and help from the VA if you struggle to make payments
- Easy credit and debt-to-income (DTI) qualifying
VA Loan Approval
Before you can officially qualify for a VA loan, you’ll need to obtain a certificate of eligibility (COE). The following is a general list of VA loan eligibility requirements. This not is not inclusive and does not guarantee eligibility:
- Those who served during wartime for at least 90 days of active duty with other than dishonorable discharge or discharged less than 90 days as a result of a service-related injury
- Those who served during peacetime at least 181 days of continuous active duty or less than 181 days if discharged less than 181 days as a result of a service-related injury
- Those who served as a reservist or member of the National Guard for six years or longer
- Are an un-remarried spouse of a veteran who died during service or as a result of a service-connected disability, or who was declared POW or MIA
- Former spouses of veterans who died during service or from a service-related disability who remarried after age 57 or after December 16, 2003.
It’s Our Honor to Work with You
When you’re ready to learn more about home financing, contact West Coast Realty Services to learn more. After all that you’ve done for our country, we’d be so proud to guide you through the mortgage process. We have helped hundreds of clients in Lake Forest, Anaheim, and Santa Ana, CA, find great rates for VA loans, and we’re here to help you.