Orange County, CA First Time Buyer Uses VA Loan for $0 Down Purchase

VA is one of the only programs currently available that offers 100% financing for Orange County home buyers. Last month, Michelle Tucker, a single VA eligible homebuyer, took advantage of her VA eligibility and purchased her first home in Santa Ana, CA for $375,000. She had no down payment, and the seller paid all of her closing costs.

What is a VA No No?

Michelle bought her home using what is commonly referred to as a VA No No. The “No No” stands for “No Down payment” and “No closing costs”. The seller paid all recurring and non-recurring closing costs for Michelle. Michelle did pay for the appraisal, which was $425 and needed to be paid at the beginning of the process. But other than that, she was able to purchase her home without depleting her reserves.

Michelle began the homebuying process back in May, 2009. After renting for the over 10 years and feeling like property values would never be affordable in Orange County, the real estate downturn hit. Homes that were once valued at close to $600,000 were suddenly worth less than $400,000. Also, creating the perfect storm, interest rates have been very low for most of 2009, and the First Time Buyer tax credit of $8,000 even made it better. First thing Michelle did was contact an experienced, Orange County Direct VA Lender. Her Orange County VA loan officer was able to explain how the program works and prepare several VA loan scenarios based on her qualifications. He even helped to retrieve her Certificate of Eligibility.

PreApproval for VA Loan

As part of the VA PreApproval process, she provided 2 years tax returns and W2’s, paystubs for the most recent month, 2 months bank statements, and copies of her drivers license and social security card. She also provided her DD214. A loan application was completed and credit report run. With FICO scores ranging from 661 to 679, she was good to go. PreApproval only took a few days to complete, and with no costs. Once PreApproved she was introduced to a Orange County Realtor who was familiar with VA financing and also very familiar with the Santa Ana, Tustin, and Orange market areas Michelle was most interested in.

Finding a Home in Orange County is Not Easy

Michelle quickly found that with the drop in home prices also came a flood of renters looking to buy their first home. Also competing for the properties she was looking at were “all cash” investors. While frustrating, she persevered. In June she made offers on 6 homes. In July she made offers on another 8 homes with still no results. Finally, after taking a few weeks off from the home search, she got an accepted offer in August. $375,000 purchase price with the seller paying all of her closing costs, including her “prepaid” expenses such as interest, insurance, and taxes. Escrow was set for a 45 days close. On September 28, 2009, the loan funded and the Deed was recorded. The property was hers.

While purchasing a home can be a frustrating experience at times, working with experienced real estate professionals can help to make it as smooth as possible.

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

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)



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