The Veterans Administration recently announced the VA 100% financing loan limits for Orange County, and the limit was reduced. In 2009 an Orange County VA eligible home buyer could purchase a home with $0 down up to a price of $737,500. In 2010 the limit has been reduced to $593,750.
The reduction on the loan limit should not have much of an effect for most Orange County VA home buyers. Since they are still eligible to purchase a home of almost $600,000 with no down payment, the decrease will barely be felt by 99% of buyers.
Orange County VA Home Buyers Can Still Get Loan Over $593,750
Although the limit has been reduced, Orange County VA home buyers will still be able to buy homes valued at greater than $593,750 with a VA loan. The high-balance VA Jumbo mortgage program started in 2008. VA eligible home buyers just need to come up with a down payment equal to 25% of the difference between the 100% financing limit and the purhase price of their home.
Example VA eligible Purchase for Placentia, CA
For example, if Mike Smith is looking to purchase a home in Placentia for $693,750 (for this example, $100K over the 100% financing limit), then Mike would need to have a down payment of $25,000. That is not bad. That works out to a 3.6% down payment, plus there is no Monthly Mortgage Insurance.
Example of VA Purchase in Tustin, CA
Just for another example, let’s assume that Jill Monroe, a VA eligible home buyer, is looking to purchase a home in Tustin, CA for $650,000. That is $56,250 over the 100% financing limit. 25% of $56,250 is $14,062. Jill would need to come up with $14,062 for the down payment, only a 2.1% down payment.
Southern California VA Loan Limits for 100% Financing
| County Name | Single Family Home
($0 DOWN AND UP TO)
|
|||
| LOS ANGELES | $593,750 | |||
| ORANGE | $593,750 | |||
| RIVERSIDE | $417,000 | |||
| SAN BERNARDINO | $417,000 | |||
| SAN DIEGO | $437,500 | |||
| SANTA BARBARA | $417,000 | |||
| VENTURA | $486,250 | |||
The first thing to do is check with an Orange County VA Expert Loan Officer who can put together multiple loan scenarios based on your goals and qualifications. Orange County VA loan PreApproval is very important, especially prior to making an offer.
Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Trust One Mortgage Corporation for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
*Trust One Mortgage Corporation is licensed and supervised by the California Department of Real Estate (“DRE”), License # 01087829
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