VA Loans

 

 

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VA Purchase Loans - Ask Our Experts How to Structure Your VA

  • Purchase for Seller paid closing costs
  • Competitive interest rates that are routinely lower than conventional rates.
  • Sellers can pay up to 6 percent of closing costs and concessions.
  • Higher allowable debt-to-income ratios than for many other loans.
  • 0% down payment required on purchase.

VA Refinance Loans - Streamline IRRL

  • No Appraisal
  • No Income documentation
  • No Asset Documentation
  • Power of Attorney available
  • Easiest Loan Available

Conventional to VA loan Conversion – We’ll Show You the Benefits


VA Home Loan Guarantee

VA Guaranteed loans are made by Private lenders, Banks and Mortgage companies.

Rules:
  • Must be Owner Occupied for Purchase or Refinance.
  • Must move into property within 60 Days
  • No more than one VA Home loan can be active at a time.
  • Streamline Refinance Veteran is required to certify that they previously occupied the
    property as their primary residence.

VA Eligibility Requirements

Benefits and Types of VA Loans

Purchase:

Purchase loans up to 100% of the subject property’s county lending limit at very competitive
interest rates. (No money down)

Refinance:

Streamline refinance (IRRRL) available for Current VA loans. No Income documentation and
No appraisal is required

Cash Out Refinance:

Home owners that want to take cash out for home improvement debt consolidation etc.
Convert your conventional Loan to a VA loan. (Conventional to VA conversion is treated
as VA cash out and same rules apply)

Jumbo Loans:

$0 Down payment loans available for loans greater than 417,000 up to their county limit.
See lending limits for California counties.Purchases over the county lending limit can allow for
loans of up to 1,000,000. Contact us to determine Down payment requirements for loans exceeding
county limits:

Service Eligibility Requirements Are Defined As:

  • Veterans who served on active duty and have a discharge of other than dishonorable.
  • Wartime service: Minimum of 90 days
  • Peacetime service: Minimum of 181 continuous days
2 Year Requirement:
  • Enlisted: Began service after September 7th, 1980
  • Officer: Began service after October 16th, 1981
6 Year Requirement:
  • National Guard and Reservists
Special rules apply to eligibility of surviving spouses.

VA Credit Considerations

  • Late Mortgage Payments: 12 months current payments – No late payments for consecutive 12 month period.
  • No Credit History: Should not hinder a loan approval. Payment history on utility bills, phone bills, etc. can
    be used to establish credit history.
  • Chapter 7 Bankruptcy: O.k. 2 years after discharge date, not the filing date.
  • Chapter 13 Bankruptcy: will consider a borrower still paying on a Chapter 13 Bankruptcy if the payments
    to the court have been satisfactorily made and verified for a period of one year. In addition, the court trustee
    will need to give written approval to proceed. A full explanation of the bankruptcy will be required.
  • Foreclosure: A borrower whose previous residence or other real property was foreclosed on or given a
    deed-in-lieu of foreclosure within the previous two years since the disposition date is generally not eligible.
    After 2 years – Lenders will consider.
  • Collections and Judgements:If minor in nature, may not need to be paid off as a condition for loan approval.
    Judgments must be paid in full prior to closing. A borrower is not eligible if they are delinquent on any Federal
    debt, including tax liens, student loans, child support etc.

Closing Costs

VA Funding Fee is required by law and is applied to all VA Loans. It is a mandatory contribution from the
Veteran to pay for the benefit.

Exempt from VA Funding Fee:
  • Veterans receiving VA compensation
  • Veterans 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).
  • VA administration has final say on exemptions
VA Funding Fee Breakdown for Streamline Refinance Interest Rate Reduction Loan:
  • VAFF = .5%
VA Funding Fee breakdown for Home Loan Purchase:
Regular Service
  • First Time User: - VAFF = 2.15%: 100% Financing | No down payment
    VAFF = 1.5%: 90% - 95% Financing | 5% - 10% down payment 
    VAFF = 1.25%: 90% or Less Financing | 10% or greater Down payment
  • Second Use Or More: - VAFF = 3.3%: 100% Financing | No down payment  
    VAFF = 1.5%: 90% - 95% Financing | 5% - 10% down payment
    VAFF = 1.25%: 90% or Less Financing | <10% Down payment
Reserves / National Guard
  • First Time User: - VAFF = 2.4%: 100% Financing | No down payment  
    VAFF = 1.75%: 90% - 95% Financing | 5% - 10% down payment
    VAFF = 1.5%: 90% or Less Financing | 10% or greater Down payment
  • Second Use Or More: - VAFF = 3.3%: 100% Financing | No down payment
    VAFF = 1.75%: 90% - 95% Financing | 5% - 10% down payment
    VAFF = 1.5%: 90% or Less Financing | <10% Down payment

Fees and Charges

Allowable Fees: This is defined as closing costs that the borrower can pay.

  • Appraisal inspection and any compliance inspections (ex. Termite)
  • Title fees
  • Recording fees
  • Credit Report
  • Pre Paid Items – funding of new impound account, taxes, assessments
  • Hazard Insurance
  • Flood zone determination
  • Survey

NON Allowable Fees:Lender must cover these costs with a 1% Flat fee.

  • Loan Closing or settlement fees
  • Documentation Preparation fees
  • Interest rate lock fees
  • Postage and Mailing fees