VA Loan Cashout Refi for Orange County Borrowers

Orange County homeowners with a VA loan are finding there are big advantages to the VA Cashout refinance program. This program actually does not require the loan being refinanced to be a VA loan, as long as the borrower is eligible for a VA loan.  The biggest advantage of this program over most other cashout refinance programs is that the borrower can borrow money up to 90% of the properties value, while a Conventional loan allows cashout up to 80% loan to value, and FHA allows cashout up to 85% loan to value.

What is the Difference between a VA IRRRL and a VA Cashout Refi for Orange County Borrowers?

Orange County borrowers need to keep in mind a few of the differences between the popular IRRRL, or VA Interest Rate Reduction Refinance Loan,  and a VA Cashout refinance.  The IRRRL program is strictly a “Rate and Term” refinance, and the current loan needs to be a VA loan. Also, income is not verified, and in most situations, there is no appraisal. (Although there have been some changes to the appraisal requirements and some lenders are tightening up this program.) The VA considers any refinance that is not an IRRRL to be a cashout refinance. This means that if an Orange County VA eligible borrower wishes to refinance from a Conventional (Fannie Mae or Freddie Mac) loan, then even if they will not pull cash out, VA still considers it a cashout refinance and it must be underwritten as such.

VA Loans Are Flexible with FICO Scoring

Another big advantage for a VA cashout refinance versus a Conventional cashout refinance is the relative flexibility towards FICO scoring. For VA eligible borrowers with FICO scores under 700, if may make more sense to go with a VA loan even you only plan to pull cash out to 80% loan to value. Fannie Mae and Freddie Mac have instituted pricing “addons” which increase the fees and rate for cashout refinances when the FICO scores drop below 740. If your score FICO drops below 700, the pricing hits really start to add up. With VA, the pricing hits for low FICO’s are minimal.

VA Guidelines Regarding a Cashout Refinance

The actual VA guidelines allow for cashout to 100% loan to value, but finding a lender who will allow this will be difficult. Lenders tend to stay with the 90% rule, although there is some flexibility if the borrower is not actually getting cashout and the loan to value is over 90%. This is something that should be reviewed by an experienced Orange County VA loan officer prior to paying for an appraisal.

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.

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

 

Orange County VA Loans | First Time Buyer Tax Credit Extended for Armed Forces

Orange County, CA First Time Buyers using VA financing will be pleased to know that the First Time Home Buyer Tax Credit has been extended. For most home buyers, the tax credit has been extended through June 30, 2010, as long as the purchase contract has been signed by April 30, 2010. But for members of the Armed Forces who meet certain criteria, the extension goes out an extra 12 months.

Expanded Rules for Members of the Armed Forces to Benefit Orange County Buyers

For those members of the “Uniformed” services, or members of Foreign Service of the United States, or employees of the Intelligence Community, the following exception will allow for the extended deadline dates.  Extended Duty is defined as “Official Orders outside the United States for at least 90 days during the period from 12-21-2009 to May 1, 2009.

First Time Buyer Tax Credit Deadlines for Extended Duty Borrowers

The tax credit dates are extended to include the following:

  • Contract must be signed by April 30, 2009
  • The transaction must be closed by June 30, 2009

This extension will help a lot of people. The tax credit was set to expire on November 3o, 2009. Now, with the expanded and extended rules, Orange County first time buyers will have plenty of time to find a home and close escrow. The Tax Credit is good for up to $8,000 or 10% of the sales price, whichever is less. Since there aren’t many homes in Orange County priced less than $80,000, most Orange County home buyers will get the full $8,000.

Income Limits Are Increased

The new rules have increased the income limits to $125,000 for Single tax filers and $225,000 for Married tax filers. This is quite a bit higher than the previous limits, and will help those buyers looking in the higher price ranges. The purchase price must be less than $800,000.

Orange County Buyers Should Get PreApproved

Orange County First Time Home Buyers should get PreApproved for a VA loan prior to shopping for a home. It is important to know what you will qualify for before getting too far into the home buying process. Also, sellers will not even accept an offer from a buyer unless the buyer has been PreApproved by a lender. PreApproval is a quick and easy process. The first step is to contact an Orange County Direct VA lender.

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.

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

 

Orange County, CA VA Streamline Refinance

VA IRRRL in orange countyOrange County, CA VA borrowers can take advantage of the VA Streamline Refinance program, also known as the IRRRL, or Interest Rate Reduction Refinance Loan. With rates still low in 2018, borrowers have been lowering their payments without needing an appraisal or even needing to qualify for the loan.

How Does the IRRRL Help Orange County, CA VA Borrowers?

The IRRRL was created to help those who have served our country be able to finance their homes at the best terms possible. With this program there is none of the following.

  • No Appraisal
  • No termite inspection
  • No credit qualifying

The loan must be current with no more than 1 30 day late within the most recent 12 months. This program is available to Veterans who purchased their home with a VA mortgage or refinanced into a VA loan at some point. There is more than one way to do a VA Streamline Refinance. You can either go for the lowest rate possible and add closing costs into your loan amount, an option that may make sense when you are planning to stay in your home long term. The other option is to go for an interest rate that would allow for the lender to cover some or all closing costs on your behalf. The best idea is to review all options and decide which scenario works best for your individual situation.

Rates are Low. Should I Definitely do a VA Streamline Refinance?

Just because the rate you can get with a VA Streamline is lower than your current rate doesn’t mean it refinance to va loanautomatically makes sense to refinance. You need to look at the monthly savings a refinance will create and make sure the costs involved in the streamline refinance do not outway the savings. For example, if you’re being told it will cost more than 3 points to get that great, low, advertised rate, the costs may end up being too high that they defeat the whole purpose of refinancing. Also, when a lender tells you that you will “skip” a payment or two, understand that you never “skip” mortgage payment. VA does not allow lenders to advertise “skipping” payment, and yet many VA IRRRL mailers still advertise it. What is actually happening if you feel like you are skipping a payment is that the interest for the payments not being made is added to the new loan. This may be something some VA borrowers want to do, but it is important to understand all of your options. Make sure that the lender you are working with has your best interests in mind.

 

Authored by Tim Storm, an Orange County, CA Loan Officer specializing in VA Loans. MLO 223456. – Please contact my office at Fairway Independent Mortgage Corporation NMLS #2289. My direct line is 714-478-3049. I will prepare custom VA loan scenarios that will be matched up to your financial goals, both long and short-term. I also prepare a Video Explanation of your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

Orange County, CA VA Loans | Can’t Find Your DD214? Here’s How to Get it.

It is important for Orange County, CA Veterans who are looking to take advantage of the VA loan programs 100% financing option first get their Certificate of Eligibility. But how do they do that? First, you must be able to provide your DD214- Report of Separation.

What if an Orange County, CA VA Loan Borrower has lost their DD214?

If you cannot find your DD214 (because you put it in a very safe place?), there is an easy way to get a new copy. You could go to a local VA office, but the best and easiest thing to do is go to Archives.Gov/Veterans/Evetrecs. Veterans will be able to request a copy online.  This service is even available to next of kin of deceased military members.

I have my DD214. Now What Do I do to Get my Certificate of Eligibility?

The easiest way to get your Certificate of Eligibility is to go to an Orange County, CA Direct VA Lender who has access to the Veterans Information Portal (VIP), that only an approved VA lender can access.  Your lender will be able to get the COE with minutes. (That’s why this is the easiest way to do it.) Also, using the a lender to get your COE does not mean you are forced to used that lender. You are still able to go to another lender at any time. If the lender is not able to get the COE online, then the Veteran will need to complete Request for a Certificate of Eligibility Form (form 26-1880), which the lender can provide. Also, the Veteran will need to provide their DD214 as disucssed above. Current Active Duty Service Members will need to provide a Statement of Service from their commanding officer. With this informtion the lender will be able to request the Certificate of Eligibility through a slightly different process on the VIP portal.

The alternative is the Veteran can request their COE by regular mail by sending the 26-1880 and DD214 to: VA Eligibility Center, P.O. Box 20729, Winston-Salem, NC 27120.

Once the Veteran has their COE, they are ready to begin the home search process. There has not been a better time in many years to buy a home in Orange County. Orange County First Time Home Buyers who are taking advantage of the FHA and VA loan programs are finding out quickly that they are able to buy a home and have a very reasonable payment as compared to what they could get for the same rental payment. The VA loan limits in Orange County, CA are higher than ever before at $737,500 for 100% financing. (Orange County, CA FHA loan limits are also very higher at $727,750) The most important thing an Orange County, CA home buyer can do is get PreApproved for a mortgage before making an offer on a home.

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.

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

 

VA Loan Limits for Orange County, CA and Surrounding Southern California Counties

The VA Mortgage loan limit in Orange County, CA for $0 down payment financing is $737,500 for 2009. This is as high as the limit has ever been. Technically, VA guaranteed loans do not have a maximum limit, but lenders who sell their loans in the secondary market  need to limit the size of the loans as prescribed by Ginnie Mae. Not all lenders will even go this high, with many cutting it off at $417,000, but there are lenders that will exceed the $417,000 limit. Below are the limits for southern California counties.

These limits are for loans that close between January 1, 2009 and December 31, 2009.  These limits are available to Veterans who have never used their VA Entitlement before, or their full entitlement has been restored. If the full entitlement has not been restored then the full loan amount will not be available. The first thing an Orange County, CA Veteran should do to determine the amount they are eligible for is contact an Orange County Direct VA Lender.

What if an Orange County, CA VA Home Buyer Purchase a Home for More Than $737,500?

The table below shows the $0 down VA loan limit for each county and also shows the actual VA loan limit for each county. For example, if an Orange County, CA Veteran purchases a home for $$837,500, or $100,000 above the $0 down limit, then the Veteran would need to come in with a $25,000 down payment, or 25% of the difference between the purchase price and the $0 down limit.

County Name Single Family Home 

($0 DOWN AND UP TO)
Max Guaranty
LOS ANGELES $737,500 $1,000,000
ORANGE $737,500 $1,000,000
RIVERSIDE $417,000 $1,000,000
SAN BERNARDINO $417,000 $1,000,000
SAN DIEGO $593,750 $1,000,000
SANTA BARBARA $656,250 $1,000,000
VENTURA $650,000 $1,000,000

***The 2010 VA loan limits for Orange County and the rest of Southern California were announced in early December 2009.

Authored by Tim Storm, an Orange County, CA Loan Officer MLO 223456– 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.