Purchase your dream home at a competitive interest rate in Orange County or Los Angeles County, California, often without requiring a down payment or private mortgage insurance. VA (Veterans Affairs) Home Loans help you purchase a home without needing a down payment or excellent credit. Already own a home? Use the funds to remodel or however you wish.
Have you served in the military? If you answered “Yes”, then continue reading for eligibility.
Let’s go over the VA Loan requirements. How to qualify for a VA Home Loan in Orange or LA County?
- You must have suitable credit and meet the requirements for the lender, in most cases is minimum FICO of 620.
- You must have a Valid Certificate of Eligibility (COE) to be eligible for a VA-guaranteed home loan. The new system, called Automated Certificate of Eligibility (ACE), should be especially beneficial for active-duty members and Veterans who are using their home loan benefit for the first time. The ACE system will not reject any veterans for home loans and lenders will not be involved in deciding any eligibility issues. After the veteran’s information is entered by the financial institution providing the loan, the lender will receive a certificate authenticating the veteran’s eligibility in seconds.
- You may be eligible if you have been on active duty for a minimum of 90 days, if you have been active in war time service for 90 days, or have been part of the Reserve or National Guard for six years.
- You may be eligible if you are the spouse of the deceased veteran who died while in service or of service connected issues.
- CalVet Loans require that Veterans are released from the military under conditions other than dishonorable.
*If you do not meet the minimum service requirement, you may still be eligible if you were discharged due to (1) hardship, (2) the convenience of the government, (3) reduction-in-force, (4) certain medical conditions, or (5) a service-connected disability
What are California VA Home Loan Benefits?
- No monthly mortgage insurance
- Low or no down payment
- Lower monthly payments
- Debt to income (DTI) can go up to 60%, despite it being recommended to be around 41%
- No prepayment penalties
- 100% Loan to Value (LTV) on rate and Term Refinances
- Can go up to 1.5 million
*General Rule: All clients on the previous loan must be on the new loan.
If Veteran is disabled the funding fee is ZERO.
Let’s get you pre-qualified, so you can place an offer on your dream home! Already own a home? Consider refinancing and lowering your monthly payments.
Interest Rate Reduction Finance Loan (IRRL)
A VA (Veteran Affairs) Loan program where a Veteran refinances an existing loan.
Who can apply for a California VA Home Loan?
- Only Veteran and spouse may be on the loan and title
- NO non borrower occupied borrowers allowed (ex:parents, siblings, etc.)
- Co-borrower must be married to Veteran (Same sex marriages are now allowed in certain states. VA (veteran Affairs) must approve prior to submission to underwriting.)
- Requires less documentation, simplified approval process
- Quicker turn time, can go up 100%
What is the California VA Funding Fee?
- The VA Funding fee is a one time payment that is paid by the borrower(s) and is calculated as a percentage of the loan amount.
How do I pay the VA Funding Fee?
- Roll the amount into your loan, also known as financing or pay the full amount at the time of closing your loan.
According to VA Gov, you won’t have to pay a VA funding fee if any of the below descriptions is true. You’re:
- Receiving VA compensation for a service-connected disability, or
- Eligible to receive VA compensation for a service-connected disability, but you’re receiving retirement or active-duty pay instead, or
- The surviving spouse of a Veteran who died in service or from a service-connected disability, or who was totally disabled, and you’re receiving Dependency and Indemnity Compensation (DIC), or
- A service member with a proposed or memorandum rating, before the loan closing date, saying you’re eligible to get compensation because of a pre-discharge claim, or
- A service member on active duty who before or on the loan closing date provides evidence of having received the Purple Heart
Do disabled veterans pay property taxes in California:
The Disabled Veterans’ Exemption reduces the property tax liability on the principal place of residence of qualified veterans who, due to a service-connected injury or disease, have been rated 100% disabled or are being compensated at the 100% rate due to unemployability. An unmarried surviving spouse of a qualified veteran may also claim the exemption.
There are two levels of the Disabled Veterans’ Exemption:
- Basic – The basic exemption, also referred to as the $100,000 exemption, is available to all qualifying claimants. The exemption amount is compounded annually by an inflation factor. For example, for 2018, the basic exemption amount was $134,706.
- Low-Income – The low-income exemption, also referred to as the $150,000 exemption, is available to qualifying claimants whose annual household income does not exceed a specified income limit. The amounts for both the low-income exemption and the annual income limit are compounded annually by an inflation factor. For example, for 2018, the low-income exemption amount was $202,060 and the annual household income limit was $60,490.
This Disabled Veterans’ Exemption is a more advantageous exemption than both the Veterans’ Exemption and the Homeowners’ Exemption. Thus, if a claimant qualifies, the Disabled Veterans’ Exemption should be claimed on the property instead of either of those two exemptions.
Form BOE-261-G, Claim for Disabled Veterans’ Property Tax Exemption, must be used when claiming the exemption, both for the initial filing and any subsequent annual filings required.
VA Home Loan Limits California 2020
Fannie Mae and Freddie Mac Maximum Loan Limits for Mortgages Acquired in Calendar Year 2020 and Originated after 10/1/2011 or before 7/1/2007
These limits were determined under the provisions of the Housing and Economic Recovery Act of 2008