Posts tagged as:

Orange County

2011 VA Loan Limits for Orange County, CA Good Through December

by Tim Storm on September 7, 2011

The 100% VA financing loan limit in Orange County, CA for 2011 is $700,000. The limit is typically changed, either up or down, at the end of September of each year. And while Fannie Mae, Freddie Mac, and FHA loan limits in Orange County will all be dropping from $729,750 down to $625,500, the Department of Veteran Affairs announced the VA loan limits will be extended through the end of 2011.

How Does This Effect the Maximum VA Loan Limit?

It is important to note that there is not a “maximum” VA loan limit. There IS a maximum “guaranty” provided by VA for loans meeting VA guidelines. In Orange County, a Veteran can still purchase a $700,000 home with no down payment. If the Veteran or Active Military wants to purchase a home for more than the 100% limit ($700,000), then a down payment is required. The down payment is equal to 25% of the difference between the $700,000 VA 100% financing limit and the higher purchase price. For example, if the purchase price will be $800,000, then the down payment required would be $25,000, or 25% of the difference between $700,000 and $800,000.

While there is not a maximum “loan limit”, most lenders will not lend above $1,500,000. Still, the VA program has provided a great way for Veterans to refinance their Convention loan to a low 30 year fixed rate, even when they have lost equity in their home. A “Jumbo” 30 year fixed rate is typically .75% to 1% higher than the going VA 30 year fixed rate.

Will the 100% Financing Limit in Orange County go Up, or Down, in 2012?

The Veteran’s Benefits Improvement ACT of 2008 provided a temporary increase in 100% VA financing limits for loans closed from January 1, 2009 through December 31, 2011. In 2008 the limit was only $417,000. In 2009 the limit increased dramatically to $737,000 in Orange County. In 2010 the limit dropped to $593,750, and in 2011 went back up to $700,000. Right now it is tough to tell what will happen with the VA loan limit. It most likely won’t go up. Based on what is current happening with the Fannie Mae/FHA loan limits, the better guess is loan limits will drop. But how far? We should have a better idea within the next few months.

Veterans Purchasing Luxury Homes in Orange County Should Act Now

Because of the uncertainty regarding the Orange County 100% financing VA loan limit, Veterans who are considering a purchase of a home greater than $417,000 should get serious about finding a home before the end of 2011. The first step in determining eligibility and qualifications is to contact an Orange County Direct VA lender. The lender should be able to quickly retrieve your Certificate of Eligibility, as well as provide customized loan scenarios which will give the Veteran the details of a transaction that are needed when planning for a large financial event.

Authored by Tim Storm, an Orange County, CA FHA and VA Loan Officer – Please contact my office at Alpine Mortgage Planning for more information about an Orange County, CA home loan. 877-786-4243 x 7.  MLO 223456

www.OCFHALoans.com

Contact us for your Orange County VA Mortgage:

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

* Alpine Mortgage Planning is licensed and supervised by the Department of Corporations under the California Residential Mortgage Lending Act. NMLS 81395.

{ 0 comments }

VA Loan Requirements & Eligibility for Orange County Veterans

by Tim Storm on July 26, 2011

A common question among Orange County Veterans is “what are the VA loan requirements” and “am I eligible“. Because for several years in Orange County, the VA loan limits were too low to help a Veteran purchase a home, the VA program was seldom used. But now, with the $0 down loan limit in 2011 at $700,000, the VA loan program has become very popular. With low 30 year fixed rates, no down payment requirements, and flexible qualifying, any active duty military or Veteran thinking of purchasing a home in Orange County should learn about the VA loan program and the benefits it provides.

Eligibility Requirements for VA Loan Program

Orange County Veterans with active duty service (who were not dishonorably discharged) during World War II and later periods are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31, 1955), and Vietnam era (August 5, 1964 to May 7, 1975) veterans must have at least 90 days of service.

Orange County Veterans and active duty military personnel who served during peacetime must have had more than 180 days of active service. Veterans of enlisted service starting after September 7, 1980, or officers with service beginning after October 16,1981, must in most cases have served at least 2 years.

The VA does not require that you have a certain credit score in order for approval. The actual mortgage lenders, however, are allowed to set their own standards for VA loan requirements. Most Orange County direct VA lenders require a minimum FICO score of 620 for loan amounts under $417,000. For loan amounts over $417,000, known as “high balance VA loans”, the FICO may need to be higher.

Since early 2010, most VA lenders in Orange County, and throughout the country, have tightened their lending and credit score requirements, making home financing harder to come by for those with credit issues or other criteria that makes their loan more risky.

To learn more about this, our article Credit Score Requirements For Orange County, CA VA Mortgages is a great place to start.

There are three specific pieces of documentation a lender will need to determine your eligibility:

  • A DD214 for discharged veterans.
  • A statement of service for active military personnel.
  • A certificate of eligibility (COE) to determine you have VA entitlement. Most Orange County VA lenders can quickly retrieve your Certificate of Eligibilty on your behalf.

Because each VA lender has different qualifying guidelines, the next step is to contact your local Orange CountyVA loan expert to find out if you meet their VA loan requirements such as minimum FICO/credit scores, debt-to-income (DTI) ratios, and find out what your California county’s maximum loan amount is.

Lastly, if you have either had a divorce, filed bankruptcy, or had a previous home go into foreclosure, you are not immediately disqualified from a VA loan, although there are some additional restrictions.

You can find more information regarding these topics in our articles titled Divorce And VA Loan Eligibility, Does A Bankruptcy Mean I Can’t Get A VA Loan? and Can I Get A VA Loan If I’ve Had A Recent Foreclosure?

Authored by Tim Storm, an Orange County, CA FHA and VA Loan Officer – Please contact my office at Alpine Mortgage Planning for more information about an Orange County, CA home loan. 877-786-4243 x 7.  MLO 223456

www.OCFHALoans.com

Contact us for your Orange County VA Mortgage:

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

* Alpine Mortgage Planning is licensed and supervised by the Department of Corporations under the California Residential Mortgage Lending Act. NMLS 81395.

{ Comments on this entry are closed }

Orange County VA Mortgage Loans

by Tim Storm on March 14, 2011

In Orange County, CA a VA (Veterans Administration) guaranteed home loan is the preferred loan program for active, non-active, Reserve, National Guard, and retired military of the armed forces. There are several reasons, including the fact that no down payment is required up to a $700,000 purchase price,  and no private monthly mortgage insurance required.

Veterans and active duty military in Orange County are able to use a VA mortgage loan for purchasing a home, building a home, or refinancing an existing mortgage. And the existing mortgage does not need to be a VA loan. Many current Orange County homeowners are finding that being able to refinance out of a Conventional loan and into a VA loan at 100% loan to value is a great thing. And remember, no mortgage insurance, which FHA and Conventional loans will have.

We will discuss what role the VA plays in a VA guaranteed mortgage, the benefits of a VA home loan for Orange County Veterans and Active Duty personnel, who is eligible for a VA loan, and the documentation you will need to present to your Orange County VA direct lender in order to apply.

Did you know that more than 27 million veterans and service personnel are eligible for VA financing, yet many in Orange County aren’t aware it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement? The lack of realizing the benefits of a VA loan seems especially true for current homeowners who do not realize how high the Orange County VA loan limits currently are in 2011.

VA Does Not Offer Loans Directly to Orange County Veterans and Does Not Guaranty You Will Qualify

The VA does not actually lend the money to you directly. They offer a guaranty to a lender, in this case a local Orange County direct VA lender,  that if you should default on the loan, they will pay the Orange County VA lender a percentage of the loan balance.

*The word GUARANTY does not actually guarantee the Orange County veteran will qualify for a VA home loan.

Primary Benefits of a VA Mortgage for Orange County Veterans:

  • 100% financing, up to a $700,000 purchase price in Orange and Los Angeles counties.
  • No monthly private mortgage insurance is required. (Conventional financing requires this at over 80% loan to value. FHA requires this on all loans.)
  • There is a limitation on Orange County home buyers’ closing costs – costs are regulated by VA. Some costs cannot be paid by the Veteran.
  • The loan is assumable, subject to VA approval of the assumer’s credit. This is an awesome feature.
  • 30 year fixed loan. VA also offers a great 5 year program, but with interest rates so low its hard not to take advantage of a 30 year fixed.
  • Seller can pay up to 4% of the Orange County veterans closing costs and even pay down they buyer’s debt to help lower their debt-to-income ratio.
  • Interest rates are similar to FHA interest rates.
  • You don’t need perfect credit. Typically, most Orange County VA lenders wants a minimum middle FICO score of at least 620. You can buy a home only two years after a foreclosure.

Frequently Asked Questions from Orange County Veterans about VA loans:

Q: My parent is a veteran. Can I obtain a VA loan if I have not served in the military myself?

No, the VA loan benefit does not extend to a veteran’s children.

Q: What is required to prove I served in the military?

You should have your DD214. Your lender will need this, along with a completed Request for Certificate of Eligibility. Your Orange County VA lender can help.

Q: My spouse who has passed away was an eligible veteran. Am I eligible for the home loan benefit myself?

A surviving spouse is eligible if they have not remarried, and the eligible veteran died during active duty service or as a result of a service-related disability.

Q: Is a VA loan better than a Conventional mortgage for Orange County homeowners and buyers?

In many cases, yes. VA guaranteed loans often offer a lower interest rate than conventional mortgages, especially for higher balance mortgages between $417,000 and $700,000, the Orange County 100% financing limit. Also, they do not require monthly private mortgage insurance when borrowing more than 80% of a home’s value, and they can be easier to get approved for because of the flexibility with credit and the allowance for higher debt to income ratios.

Q: How long does it take to get approved for a VA loan in Orange County?

It varies depending on the current workload of your lender, but it is typically the same as for Conventional and FHA mortgages – 3 weeks to 45 days. Much depends on your ability to quickly deliver the items required for loan processing. But if you’ve already been PreApproved by a local Orange County Direct VA lender, then closing in 3 weeks is a possibility.

Of course the first step is always to talk with a Orange County VA loan expert who can provide customized loan scenarios based on your qualifications and goals.

Authored by Tim Storm, an Orange County, CA FHA and VA Loan Officer – Please contact my office at Alpine Mortgage Planning for more information about an Orange County, CA home loan. 877-786-4243 x 7.

www.OCFHALoans.com

Contact us for your Orange County VA Mortgage:

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

* Alpine Mortgage Planning is licensed and supervised by the Department of Corporations under the California Residential Mortgage Lending Act. NMLS 81395.

{ Comments on this entry are closed }

VA Loan in Orange County | Test Case | Lake Forest, CA

by Tim Storm on February 26, 2011

Lake Forest, Orange County VA Loan VA loan financing is going strong in Orange County cities like Lake Forest. With the 2011 VA loan limit for 100% financing in Orange County at $700,000, Veterans in Orange County, CA are able purchase very nice homes with no down payment.  Below is an example of a recent closing in Lake Forest where an Orange County first time home buyer bought a house using a VA loan with no down payment.

Zero Down VA Loan on $620,000 Lake Forest, CA Home

Not all first time buyers are looking for a $250,000 condo. In Orange County, first time home buyers are quite often very well qualified, high salaried, couples or individuals. In this case, Charlie and Suzanne Gunner (names have been changed to protect the privacy of the home buyers) were shopping for a home in the south Orange County cities of Mission Viejo, Lake Forest, Ladera Ranch, and Rancho Santa Margarita. There credit was excellent, with FICO scores of 731 and 745. They also had over $25,000 in the bank, along with a 401K.  The Gunner’s had talked to a few Orange County lenders who suggested that FHA financing was the best way for them to go. They were told that VA financing, even though they were eligible since Charlie had served in the Marine’s during Desert Storm, was too difficult and took too long to close. But then they found a local Orange County VA loan expert who was able to lay out a comparison of an FHA loan versus a VA loan for them.

FHA Loan Versus VA Loan

For those Orange County home buyers who are eligible, a VA loan has many advantages over FHA financing, which will save the VA borrower thousands of dollars over the life of the loan.

  • VA will finance up to $700,000 in Orange County with no down payment. FHA will finance up to $729,750 in Orange County, but requires a 3.5% down payment. On the Gunner’s $620,000 home, they needed $0 to buy their home, not counting closing costs. With FHA, they would have needed $21,700 for the down payment. Since they only had $25,000 liquid in the bank, the FHA loan would have cleaned them out, and they would have needed to have the seller pay all of their closing costs. With VA, if they were in a competitive offer/counter offer situation, they would be able to pay their own closing costs and still have money left over.
  • VA has a Funding Fee of 2.15% for first time user VA borrowers. On a $620,000 base loan, this equates to a $13,30 VA Funding Fee, which is added to the loan. So the total VA loan amount is $13,330. FHA actually comes out a little better here. FHA has an Upfront Mortgage Insurance Premium equal to 1% of the loan amount. After factoring the down payment requirement, the FHA UFMIP would be $5,983. While there is some savings, both the Funding Fee and the UFMIP are not paid out of pocket, they are financed into the loan. The result is minimal. Also, for Orange County VA Loan eligible home buyers who have a minimum 10% VA disability (you’ll know if you have it), the Funding Fee is waived. No Funding Fee.
  • FHA has a Monthly Mortgage Insurance added to the payment. The MMI is equal to .9% of the loan amount, divided by 12. On a $620,000 purchase price, the MMI would be approximately $465 per month. VA loans do not have any type of Monthly Mortgage Insurance. This resulted in a savings for the Gunner’s of $465 per month. $5,580 per year, or $61,000 over the 11 years that the FHA loan would have the MMI.

Typical Concerns about VA Financing in Orange County

The Gunner’s were still a little concerned about whether they could buy a home with a VA loan. They had been told that sellers didn’t likeVA financing and the Listing Agents tended to shy away from VA financing. Also, there was concern that the VA appraisal process would be more rigorous that on an FHA or Conventionally financed loan. But that is not the case. FHA and VA appraisals are very similar. The primary focus of an appraisal is to make sure the property is worth what the home buyer is paying for it. On Government loans, the appraiser will look a little more closely at safety issues, such as loose wires, peeling lead paint, broken windows, water damage, etc. But most home buyers, especially a first time home buyer, should be concerned about those issues as well. They typically will come up on the Home Inspection report, which is recommended for all home buyers. Also, VA requires a termite inspection report, with all items cleared. Again, this is something that most homebuyers should want anyway.

VA Loan PreApproval

Once the Gunner’s were comfortable with the fact that a VA loan was in their best interest, they moved forward with getting PreApproved. The process was quick, but thorough. They needed to provide two years tax returns and W2′s, one months paystubs, two months bank statements, copies of their drivers license and social security cards, as well as Charlie’s DD214. The Orange County VA lender was able to quickly retrieve the VA Certificate of Eligibility, run credit, and get the initial “Automated” loan approval. The Gunner’s annual gross income of $130,000 easily qualified them for a purchase price of $670,000, even with the $600 car payment they had.

The lender also had an in house VA Underwriter review the file, providing an underwritten loan approval. The whole process only took a few days. But now, the Gunner’s were ready to get serious about finding a home.

Time to Buy an Orange County Home

The Gunner’s also found a great Orange County Real Estate agent familiar with VA financing. Within weeks they had viewed several homes before finding a great home in Lake Forest, offered at $630,000. After a week of counter offers, they went into contract to purchase the home for $620,000 with the seller paying $10,000 in closing costs. The VA loan closed in 30 days. Closing was very smooth, primarily because the Gunner’s had done their research and had been PreApproved before making an offer on a home. The Gunner’s are now happily in their beautiful Lake Forest home. They are doing a few minor upgrades, which they are able to do because of the money they saved by choosing a VA loan.

Authored by Tim Storm, an Orange County, CA  VA Loan Officer – Please contact my office at Alpine Mortgage Planning for more information about an Orange County, CA home loan.  877-786-4243 x 7. MLO 223456

www.CaliforniaVALoanExpert.com

Contact us for your Orange County VA Mortgage:

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

* Alpine Mortgage Planning is licensed and supervised by the Department of Corporations under the California Residential Mortgage Lending Act. NMLS 81395.

{ Comments on this entry are closed }

← Previous Entries