Getting A VA loan after bankruptcy or foreclosure

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Getting a VA loan after bankruptcy or foreclosure is really not that difficult for Veterans in Orange County, CA.  But many Veterans do not realize how quickly the VA loan can become a viable option after a major credit event.

 

Foreclosure and bankruptcy are definite obstacles for many Veterans trying to buy a home, but with the VA mortgage program it is possible to maneuver around these obstacles more quickly than with other types of financing. Bankruptcy’s and foreclosures only require a two year waiting period before qualifying for a VA loan.

Waiting Period After Bankruptcy

There are two primary type of bankruptcy that an individual can file for. A Chapter 7 bankruptcy seizes an individuals assets and liquidates their value to satisfy the necessary debts. All debts are “discharged” through the bankruptcy. The VA program requires a waiting period of two years after a Veteran discharges a Chapter 7 bankruptcy. A Chapter 13 bankruptcy is a court-mandated process that restructures an individual’s debt and sets up a repayment plan. Chapter 13 repayment plans can take anywhere from three years to five years to complete. The VA loan program will allow a Veteran to qualify for  VA loan after only a 12 month wait period, starting from from the date of the filing. The Veteran will need to prove that they have been making their Chapter 13 payments on time, but this is still a very opportunity for a Veteran to purchase a home. A potential borrower with Chapter 13 bankruptcy must also get permission from the bankruptcy trustee before taking on an additional monthly payment. It’s also important to note that it is possible to refinance into a VA loan and pay off the Chapter 13 with proceeds from the loan.

FICO Score Requirements for the VA Loan Program

Many VA lenders will look for a credit score of at least 620 when qualifying for a VA loan, but there are lenders who will go down to a 580 FICO score. Still, it is important to begin working on credit restoration immediately after the bankruptcy is discharged. To minimize the damage, it is very important to put a lot of effort into repairing and strengthening your credit score during their waiting period prior to qualifying. And definitely do not have any late payments after the bankruptcy is discharged.

VA Loan After Foreclosure or Short Sale

A foreclosure or short sale are also significant derogatory credit events. Most loan programs require wait periods of up to 7 years before qualifying for a loan. But VA only requires a two year wait period from the date of the foreclosure or short sale. The “clock” can start earlier than the actual recorded date of the foreclosure if the mortgage for the property was included in an already discharged bankruptcy and the Veteran can prove they moved out of the property prior to the bankruptcy discharge date.

Not all lenders underwrite the same. It is beneficial to meet with a local Orange County VA lender to ensure you are on the proper path toward future qualification. The VA loan specialist you consult with should be able to prepare custom loan scenarios that will provide you with the numbers you’ll need to know about before you start the home buying process.

 

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loan. MLO 223456. – Please contact my office at the Home Point Financial. My direct line is 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

Do You Qualify for a VA Loan in Orange County Right Now?

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Do you qualify for a VA loan right now in Orange County, CA? Do you know what it takes to qualify? Orange County has one of the highest concentrations of military Veterans in the country and yet so many do not realize they are eligible for the VA loan program or even know what it takes to get qualified. First, it is important to understand the basics. What is the Debt to Income ratio and how high can it go? What are the FICO score requirements? What is Residual Income and how does it factor into qualifying for a VA loan? How long do you have to wait after a bankruptcy or foreclosure before qualifying for a VA loan? What are the VA loan limits in Orange County, CA?

Debt to income ratio

The Debt to Income ratio is a calculation that will compare a borrower’s monthly debts to their monthly gross income. The guideline that the Department of Veterans Affairs has set for VA lenders in regards to the Debt to Income ratio is 41%. This means that 41% of the borrowers’ gross monthly income can go towards the total payment (PITI), along with any car payments, installment loan payments, and credit card payments. VA also includes child care in the monthly debt calculation. It’s important to understand that 41% is only a “guideline”. VA does not have a max Debt to Income percentage. It is not unusual for a VA loan to get approved even if the Debt to Income ration is as high as 60%. However, the higher the DTI the more important compensating factors will be. What is more important on a VA loan that the Debt to Income ratio is “Residual Income.”

What is Residual income?

VA loans default at such a low rate partly because of the “Residual Income” requirement. Residual income is the monthly remaining income after a borrower has fulfilled all of their current credit obligations, including the mortgage payments, utility bills, childcare, car payments, etc. The amount of residual income required for a VA loan will vary based on the borrower’s family size and their geographical location. Your Orange County VA lender should take a close look at your Residual Income during the qualifying stage to make sure you qualify for the loan you are applying for.

FICO score requirementsFAQ on VA loans

The Veterans Administration is not a lender. The VA acts as an insurer on VA loans and sets the standard guidelines for underwriting a VA loan. How lenders interpret those guidelines varies from lender to lender. Credit score requirements definitely vary from lender to lender.  Most lenders have a minimum score benchmark of 620. Some require higher FICO scores on Jumbo VA loans. Some may even lend at a lower score (like 580). The bottom line is if a lender won’t approve your loan request based on your FICO score, it is worth looking at other lenders to see if you can find someone that will approve your request.

 

How long do I have to wait after a foreclosure/bankruptcy?

Many borrowers think that a foreclosure or bankruptcy will prevent them from being able to get a VA loan, which is not the case. With a little bit of effort put into credit repair after a major derogatory event, a Veteran can qualify for a VA loan only 2 years after a foreclosure or 2 years after a bankruptcy has been discharged. A 2 year wait period makes VA one of the most flexible loan programs available. Even better, there is no waiting period after a short sale.

VA loan limits

VA county loan limits in California vary from county to county and typically follow the limits set by the Federal Housing Finance Agency (FHFA). The VA will guaranty 25% of a VA loan amount for lenders up to the county limit,  which helps to reduce the risk of offering Zero Down home financing to Veterans. The VA county loan limit in Orange County is $679,650 (2018 Loan Limit). It is possible to get a VA loan with a loan amount higher than the county loan limit, but a down payment equal to 25% of the difference between the purchase price and the county loan limit will be needed. A VA loan that is above the 100% financing loan limit is known as a Jumbo VA loan. The Jumbo VA loan program makes it possible for Veterans in Orange County to purchase homes priced higher than $679,650 with a lower down payment than other types of financing. For example, if a Veteran in Orange County is purchasing a home for $1,000,000 in Irvine, which is $320,350 over the $0 down loan limit of $679,650, they would need a down payment of $80,087, which is 25% of $320,350. The VA loan would be $919,912. There is not currently another loan program that would allow for a $1,000,000 purchase with 8% down and have no monthly mortgage insurance.

 

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loan. MLO 223456. – Please contact my office at the Home Point Financial. My direct line is 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

Benefits of the VA Home Loan for Orange County Veterans

The benefits of the VA Home Loan for Orange County Veterans are numerous. The VA loan program is an amazing mortgage program that has less restrictive guidelines and underwriting flexibility compared to any other loan program. Some of these benefits include no down payment, no monthly mortgage insurance and competitive fixed interest rates.

VA Loan Benefits

https://www.youtube.com/watch?v=kwzuRd7vdLQ

No Down Payment Required

One of the biggest and most noticeable benefits to the VA loan program is that there is no down payment up to county loan limit. For example, in Orange County the VA loan limit is $679,650, which means a veteran is able to get a VA loan with zero down payment up to a $679,650 purchase price (2018 loan limit). Veterans are able to get a VA loan above the limit, but they would then have a down payment as a result. A loan above the Zero Down limit is called a Jumbo VA Loan and is also fairly common in Orange County due the the high cost of homes.

Competitive Fixed Interest Rates on VA Loans

VA Loans tend to have lower fixed rates than other types of loan programs. VA interest rates are typically .25% or more lower than comparable rates for Conventional financing. These lower rates also make it easier for the lender to offer a lender credit to help cover closing costs. By adjusting the interest rate slightly higher, a lender credit can save the Orange County Veteran thousands of dollars in out of pocket expenses when purchasing a home. Also, the VA loan does not have a prepayment penalty, making it easy to take advantage of the VA Interest Rate Reduction Refinance Loan (VA IRRRL) if rates drop.

The VA loan program is also one of the only programs that allows for loans to be assumable when purchasing a home. This means that when a home is purchased, the buyer can take over the sellers mortgage under the same terms. Besides FHA, no other loan program provides this benefit.

No Monthly Mortgage Insurance

No monthly mortgage insurance is one of the best benefits of a VA loan. For other types of financing, including FHA and Conventional loans, when the down payment is less than 20% of the purchase price there will be some form of mortgage insurance. With FHA, no matter what the down payment is there will be monthly mortgage insurance. for example, an Orange County home buyer purchasing a home for $600,000 would need a 3.5% down payment with FHA.  That is a $21,000 down payment. VA would have No Down payment. On the FHA loan the mortgage insurance would be calculated using a factor of .85% of the loan amount divided by 12. The monthly mortgage insurance would be approximately $417, paid every month. An Orange County Veteran purchasing the same home would have no monthly mortgage insurance, saving $417 per month versus the FHA loan.

Underwriting and Credit Flexibility

The VA loan program is also the most flexible home loan program when it comes to credit and debt to income ratios. Many lenders will close VA loans for borrowers with FICO scores as low as 580. Also, VA financing is allowed only 2 years after a bankruptcy or foreclosure. FHA requires 2 years after a bankruptcy and 3 years after a foreclosure.  Conventional loans require a 4 year wait after a bankruptcy and 7 years after a foreclosure.

Cash Out Refinance using the VA Loan

A great benefit of the VA loan is as a washout refinance. VA allows cash out up to 100% of the property value. For an Orange County Veteran looking to do home improvements, being able to pull cash out to 100% of the new appraised value means the home improvements can be completed much sooner than someone in another type of loan program. FHA allows cashout to 85% of the property value, and conventional financing only goes to 80%.

Understanding your loan options is important. A Veteran should always consider the VA loan as their first option. There are few scenarios where VA will not be better than another type of loan program. To see the numbers, have your Orange County VA loan officer prepare a Side by Side Analysis comparing the VA loan to other loan options, which will help the Veteran see the numbers and make the correct home financing decision.

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loan. MLO 223456. – Please contact my office at the Home Point Financial. My direct line is 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

VA Loan Calculators | are they accurate for California Veterans?

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Are VA loan calculators found on websites accurate? While a mortgage calculator can help in getting a quick idea of what a payment would be, in most cases they will not be accurate enough for what will be one of the biggest  purchases you will make in your lifetime.

PITI – Principal, Interest, Taxes, Insurance

The total monthly payment on a VA loan is made up of a combination of several factors, including loan principal, interest,  property taxes, homeowner’s insurance, and in the case of a condo, the Home Owners Association Dues.

Many mortgage websites contain a loan calculator that can be used to calculate an estimated monthly payment. Most of these calculators take into account most of the important values like purchase price, estimated down payment, and estimated loan term and interest rate. While these values play a big role in the calculation of your monthly payment, there are other factors that are involved in your monthly payment that these calculators either assume or don’t include.

Factors that can Affect the VA Loan Payment

Orange County VA Loan Approval

The first of these factors that play a role in shaping a VA monthly payment are the calculation of the VA Funding Fee. Knowing whether the Funding Fee is 1.25%, 1.5%, 3.3%, or 0 is something that most online calculators do not account for. Whether or not a veteran has previously had a VA loan or if they are a disabled veteran  factors heavily into the size of the VA funding fee, or whether there is a VA Funding Fee at all.

Other factors that play into determining a monthly payment include the property tax rate of the property (which will vary from one geographic region to the next) as well as the Homeowner’s insurance (earthquake insurance, flood insurance, rural area, etc). Each of these factors can vary by the area that you live in and may be different than the assumptions that the calculator is using.

What Does a California VA Loan Scenario Look Like?

With my clients I will always prepare a custom VA loan scenario, which will have a thorough breakdown of the Veterans payment, closing costs, and amount needed to close. Knowing these numbers in the early stages of the home buying process is crucial. I prepared a quick “screen capture” video which will show you what a VA loan scenario looks like. Click Here for the video.

VA Loan scenario

While researching loan options and gathering information it is extremely beneficial to get an accurate loan scenario from a California VA Loan Specialist. A loan scenario will provide a full breakdown of all the factors that will play into shaping a VA loan and the monthly payment as well as being customized to your specific situation. A complete loan scenario will also give the California Veteran an accurate estimate of the amount of money to close to close, if any.

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loan. MLO 223456. – Please contact my office at the Home Point Financial. My direct line is 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

CalVet Home Loan versus VA Home Loan | Which is Better?

California Veterans can choose between the CalVet home loan or the VA home loan. Both programs offer Zero Down Financing. But which program is better? It depends on several factors. The type of property you are purchasing, the purchase price of the home, and your long term plans with the home. A home loan is a major decision and it is important to select the right loan program for your situation. For California Veterans, the two primary programs are the Calvet and VA home loan programs. While both programs are very similar, there are important differences to consider before selecting the best program for you.

Eligibility for a CalVet Home Loan versus a VA Home Loan:

Both programs require a period of active duty service of at least 90 days as well as a discharge status other than dishonorable. CalVet is only available to veterans and active duty military living in California, while VA is available nationwide.

CalVet Home Loan:

When using the CalVet program, the desired home is purchased by CalVet and then sold to the veteran using a contract of sale. CalVet holds legal title, while equitable title is given to the veteran occupying the property. This process still gives veterans several ownership rights including property tax and mortgage interest deductions. Since CalVet holds the legal title, they can obtain a lower group rate for homeowner’s insurance. With CalVet holding legal title to your property, it can make it difficult to refinance or obtain a second mortgage in the future. CalVet does not refinance their loans, so if a Veteran wishes to takes advantage of lower rates or pull cash out based on increased equity, they will need to refinance out of the CalVet loan. The CalVet loan program is very flexible when it comes to purchasing manufactured homes, and is the better option if the manufactured home is on leased land.Orange County Veterans, home buyer

VA Home Loan:

With a VA loan, the veteran receives full ownership rights and legal title to the property, just like most other types of home loan programs. VA also allows for more flexibility in terms of occupying the property. With a VA loan the veteran must initially occupy the property, but after a few years they are able to live elsewhere and rent out the property. Compared to CalVet, which requires the purchased property to be the primary residence until the loan is fully repaid. Also, VA loans are much easier to refinance. VA offers the Interest Rate Reduction Refinance Loan (IRRRL), which allows the Veteran to refinance their loan to lower their interest rate and payment without doing a new appraisal and without supplying income documentation.  Also, while the VA loan program does allow for financing of manufactured homes there are not many lenders who will fund a VA loan on a manufactured home, especially if it is on leased land.

County VA Loan Limits and Loan Entitlements:

The size of the loan you need will likely influence which program better suits your needs based on which county you live in.  In Orange and Los Angeles counties the current VA loan limit is $625,500 whereas in Riverside County the current loan limit is $417,000. It is even possible to get a Jumbo VA loan that is above the county $0 down loan limit by coming in with a down payment. VA loans in the $800,000 to $1,000,000 range are not unusual.

Understanding your options are very important. Make sure to research both VA and CalVet to make sure you are choosing the right loan program for your needs.

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loan. MLO 223456. – Please contact my office at the Home Point Financial. My direct line is 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

Is An Earnest Money Deposit Needed for VA Financing?

is an earnest money deposit needed for va financingIs an Earnest Money Deposit needed with VA Financing? This is a question that comes up quite a bit with Veterans using VA financing to purchase a home in Orange County, CA. Since no down payment is needed for a home purchase up to a price of $625,500, some would wonder why a deposit is even needed. Especially in a situation where the loan will be a VA No No. With a VA No No, not only is there no down payment, but the closing costs and prepaid expenses are also paid, either by the seller, the real estate agent, or the lender through a lender credit. The answer is “Yes”, an Earnest Money Deposit is necessary. To understand why it is important to understand the true purpose of the Earnest Money Deposit, or EMD for short.

Purpose of the Earnest Money Deposit

By providing an Earnest Money Deposit as part of the initial offer you are showing the seller how serious you are. The EMD is held in an escrow account, not by the seller or real estate agent. Imagine if you owned a home and had three offers to purchase your home for $500,000. The first offer comes in with a $15,000, or 3% of the purchase price. The second offer comes in with an EMD of $7,500. The third offer comes in with a $1,000 EMD. As the seller you would most likely feel that the two offers with an EMD of $15,000 and $7,500 are more serious, and may have a better chance of closing than the offer with only a $1,000 EMD. Unfortunately, the offer with a $1,000 EMD may not even receive a counter offer. In order to let the seller know you are serious,  the buyer will need to include an Earnest Money Deposit. The amount needed will vary from transaction to transaction. The real estate agent will most likely be able to give advice on the amount needed.

Is the Earnest Money Deposit Refundable?FAQ on VA loans

The Earnest Money Deposit is money that is held in escrow and will go towards the funds needed by the buyer to close escrow.  Even with a VA loan with no down payment, there may be some funds needed to close. Let’s assume an Orange County Veteran is purchasing a VA approved condo in Mission Viejo for $600,000 with no down payment. Their EMD is $10,000. All closing costs and most of the prepaid expenses are covered by a lender credit, leaving just $2,000 needed from the Veteran to close escrow. Since they already have $10,000 deposited to the escrow company, they will received a REFUND of $8,000 when they close escrow on their new home.

Is the Earnest Money Deposit at Risk of Being Forfeited?

There is always a risk of the EMD being forfeited, especially of the contract is poorly written. By using an experienced real estate agent who is familiar with working with Veterans using VA financing, contingencies can be written into the contract that will protect the Veteran deposit from being forfeited. A contingency for inspections, loan approval, and the appraisal will all help to protect the EMD. The VA Addendum, which is included with the sales contract, will help to protect the Veterans deposit in the event that the VA appraisal comes in low.

Knowing and understanding how the EMD works is important for any home buyer. For Veterans, it just add’s to the importance in working with experienced real estate professionals who are very familiar with the Jumbo VA loan program in Orange County, where home prices and VA loan limits are higher than most parts of the country.

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loan. MLO 223456. – Please contact my office at the Home Point Financial. My direct line is 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

VA Loan after Bankruptcy | Only 2 Year Wait for Orange County Veterans

get a va loan after bankruptcyGetting a VA loan after bankruptcy is not as difficult as many think. While most loan programs require anywhere from a 3 year (FHA) to 4 year (Conventional) to even 7 year (some Jumbo programs) wait period after a bankruptcy, the VA program only requires a 2 year wait after the discharge of a bankruptcy.

VA Loan After Chapter 7 Bankruptcy

Depending on the type of bankruptcy, the wait period could even be shorter. For a Chapter 7 bankruptcy, which is total discharge of debts, 24 months must pass from the date of discharge to the loan approval. And while some VA lenders will have “overlays”, or their own guidelines which may be tougher than standard VA guidelines, an eligible Orange County Veteran who knows how flexible VA can be will have a better shot at buying a home sooner rather than later by working with a lender with minimal VA guideline overlays.

Another important thing to know is that many VA lenders will allow a two year wait for loans under $417,000. But for VA loans over $417,000 they will require a longer wait. For Veterans in Orange County, where home prices are high and where the 100% financing limit in 2016 is $625,500, working with an Orange County, CA VA lender who will allow only a 2 year will be the difference between buying a home and not buying a home in 2016. This means it is possible to purchase a condo, within a VA approved condo project in Orange County, only two years after a discharged bankruptcy.

VA Loan Immediately After Chapter 13 Bankruptcy

A Chapter 13 bankruptcy is a restructuring of debt. In most cases the debts are not “discharged”, but are instead paid off over a specified time period. For example, if a Veteran has $25,000 in credit card debt, the court may create a payoff plan over a 3 or 5 year time period. It is actually possible to get a VA loan before the Chapter 13 is even discharged. If a perfect 24 month payment history in the Chapter 13 is proven then the Veteran can get VA financing. It is even possible to use a VA cashout refinance to pay off a Chapter 13. For someone looking to buy a home, there is no wait period after the discharge of the bankruptcy if they were in the Chapter 13 for at least two years and had a perfect payment history. (If you are in chapter 13, do not miss a payment.)

VA Loan After Foreclosure

The VA guideline for getting a loan after a foreclosure mirror their bankruptcy rules. Only a 2 year wait period is required. Even for loans oner $417,000. This is important to know because a very common overlay for VA lenders to is require between 4 and 7 years wait after foreclosure on for loans over $417,000.

Jumbo VA Loans and Bankruptcy

Understanding what a Jumbo VA loan is and how it enables a Veteran to finance a high priced home even after bankruptcy or foreclosure can be beneficial for a Veteran who may have had a rough financial stretch a few years ago. While most Jumbo loan programs are very restrictive when it comes to prior bankruptcies and foreclosures, the VA Jumbo program follows the standard VA guidelines of only a 2 year wait. Again, not all lenders follow the standard guideline, so knowing the guidelines and finding a local Orange County VA lender who follows the guidelines is important.

FICO Score Requirements for VA Loans

Technically VA does not have an official guideline for a minimum FICO score. Most lender will not go below 620 for loans under $417,000 and 640 for loans over $417,000. However, there are lenders who will go down to a 580 FICO score.

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loan. MLO 223456. – Please contact my office at the Home Point Financial. My direct line is 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

Does a Condo in Orange County Need to Be VA Approved for a VA Loan?

does a condo in orange county need to be va approved for a va loanDoes a condo in Orange County need to be VA approved for a VA loan?

This is a question that comes up quite a bit for eligible California Veterans looking for a home to purchase. While detached Single Family Homes don’t need to be “approved”, the purchase of condo does need to be within a condo project that has been approved by VA.

The Veterans Administration wants to make sure that a condo being purchased by a Veteran is within a project that has solid financials, no lawsuits, and no unexpected assessments in store for the unsuspecting buyer. So while it may seem frustrating that not all projects are VA approved, it is nowhere near as frustrating as it would be if the condo you buy ended up costing much more monthly because of suddenly increased Home Owners Association Dues.

How Do I Find VA Approved Condos in California?

Depending on the county you live in, it may not be easy to find VA approved condos. But with a little knowledge and some work, you will find that there are a lot of VA approved condo projects in California. VA has a condo lookup site which is used to verify if a particular condo project is approved or not. It ends up being a tedious process since you are first finding condos that meet your requirements only to find out that many are not approved.

To make it even more tricky, many condo projects are not listed by name. Rather, they are listed by Tract number. But Tract number is not something most home buyers will be able to find for the condo they are looking at. For this reason it is important to work with a California VA loan specialist who can help with the condo search. Even better, the VA loan specialist can work with your real estate agent to narrow the search to just VA approved condo projects, saving time and frustration.

Shortcut to Finding VA Approved Condos in California

Some counties within California may have local VA specialists who have put together websites helping to quickly narrow down the search for VA approved condos. In Orange County, www.OrangeCountyVACondos.com provides links for VA approved condos for sales within each city. A Veteran looking for a VA approved condo in Irvine or a VA approved condo in Mission Viejo can quickly find homes by just clicking on the appropriate link.

Your local California VA Loan Officer will be able to provide custom VA loan scenarios based on your financial goals and qualifications.

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loan. MLO 223456. – Please contact my office at the Home Point Financial. My direct line is 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

Finding a VA Approved Condo in Orange County the Easy Way

Orange County VA approved condosFinding a VA approved condo in Orange County, CA  just got easy. While most homebuyers and their real estate agents will first search for a condo and then go through the tedious process of finding out if the condo is even in a project that is approved for VA financing, there is now a website that is specifically for VA approved condo projects in Orange County.

OrangeCountyVACondos.com – VA Approved Condo Search

At OrangeCountyVACondos.com an Orange County Veteran looking for a condo can quickly find VA approved condos in the city of their choice. The site is first broken up into four sections of Orange County. Each city is listed as well. For example, if a buyer wishes to find VA approved condos in Irvine, all they need to do is click on the appropriate Irvine link, and wallah, you are presented with the list of condos, including information on each condo along with photo’s.

Make Sure the Condo is VA Approved Before Making an Offer to Purchase

It is important to double check to make sure the condo you choose to make an offer to purchase on is still VA approved. An experienced VA lender will be able to quickly verify. It is also very important to talk with an Orange County VA lender who can quickly prepare custom VA loan scenarios and work on the PreApproval. By figuring out the financing before making the offer there is a far better chance of having success with not only getting the office accepted but also actually closing escrow.

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loan. MLO 223456. – Please contact my office at the Emery Financial. My direct line is 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

CalVet Loan or VA Loan | Which is Better for Orange County Veterans?

calvet loan or va loan, which is betterWhich loan program is better for Orange County, CA Veterans – CalVet or VA? It depends on the Veteran and the situation. It also depends on what is happening with interest rates. But in most cases the standard VA loan program will be the best option for a Veteran in Orange County, CA.

Important Differences Between the CalVet and VA Loan Programs

  • Max Loan Limit for 100% Financing.  The 100% VA Loan financing limit in Orange County for a standard VA loan is $625,500 in 2015. And there is are income limitations for VA. Also, it is possible to go even higher than the $0 down limit with VA. This is called a Jumbo VA Loan. Many VA lenders will lend up to $1,500,000.  CalVet will currently lender to $611,901 in “non-target” areas, and the Veteran must have income that is less than $108,360 for a 2 person household, or $126,420 for a 3 + person household. The fact that VA has no limitations just makes it easier to work with.
  • Interest rates.  CalVet has a few different interest rate offerings, depending on the “Mortgage Bond” the loan is based on. The QVMB program interest rate is 3.75% with a 4.09% APR. The QVMB has a max loan of $521,250. The QMB has a rate of 4.25% with an APR of 4.6%. The QMB is the program with income restrictions but the loan limit of $611,901.  As of this writing, standard VA 30 year fixed rates for loans under $417,000 are 3.25% with a 3.291 APR. For VA loans over $417,001 up to $625,500, interest rates are 3.5% with a 3.651% APR.  *Rates effective January 28, 2015. Subject to change.
  • VA Loan fees are typically lower than fees charged on the CalVet loan program. Also, many VA lenders will be able to offer a rate/fee option that would include a lender credit for all closing closing costs.  CalVet charges a 1% Origination Fee on all loans. There will be much more flexibility with a VA loan in helping the Veteran purchase a home with no money out of pocket.
  • Refinancing if interest rates drop. The CalVet loan does not have a refinance program for situations where interest rates drop. On the other hand, the VA program has what is by far the easiest refinance program. It is called the Interest Rate Reduction Refinance Loan, or IRRRL. With the IRRRL, there is no appraisal or income documentation required from the VA loan borrower to complete the refinance. A CalVet borrower would need to refinance completely out of the CalVet loan and into a VA loan in order to take advantage of lower interest rates. However, that is a tough way to go because since the CalVet borrower doesn’t currently have a VA loan, they would need to do a full refinance, with appraisal, termite inspection and clearance, income documentation, and VA Funding Fee. It would have been easier to just go VA in the first place.
  • Loan versus contract of sale. CalVet will actually hold legal title for the Veteran because CalVet us a Land Contract, or “Contract of Sale”. Basically, CalVet purchases the property and then sells it to the Veteran using a Land Contract. CalVet holds title, while the Veteran holds “equitable title”. With VA, the Veteran receives title immediately upon purchasing the home, which is like other standard types of financing.

How To Know Which Loan Type if Best for You

The best way to know which program is best for you is to contact an Orange County Military Lending Specialist, who can prepare custom loan scenarios based on your long and short term financial goals. Financing a home is the biggest investment most people will ever make, so making sure you’re research includes all your option can save thousands of dollars over the life of the loan.

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loan. MLO 223456. – Please contact my office at the Emery Financial. My direct line is 949-640-3102.  www.OrangeCountyVALoans.com. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.