VA is the Way
Loan programs are varied in their individual benefits, but
for veterans there is a clear choice that stands out among the others – the VA
loan. The VA loan offers the best rate,
the highest loan to value, and lower fees than other loan programs on a
veteran’s primary residence. We’ve had
the benefit of working with many veterans over the years and derive a lot of
satisfaction from getting them in homes.
The Servicemen's Readjustment Act, passed by the United
States Congress in 1944 created the VA loan as a benefit for all of the
veterans that were returning home from World War II. The VA is actually a guarantor of the VA loan
– not the actual lender. VA backs the
veteran to allow qualified lenders to issue a low interest rate/high loan to
value loan. A testament to VA’s success – over the
history of the program, 18 million VA home loans have been insured by the
government.
VA is true 100% financing.
Currently in Sacramento, El Dorado, and Placer Counties, VA allows 100%
financing up to $474,950. If a borrower
is buying above $517,500, then VA will allow 75% for the difference over this
amount. As an example of a $600,000
purchase, VA will allow 100% up to $517,500 and 75% of $82,500, for a down
payment of $20,625 – that’s only 3.4% down!
No other financing option can match a down payment that low.
VA has a lot more
flexibility with credit than most other loans.
They have shorter wait times after foreclosure and short sale than
conventional loans. They allow for lower
FICO scores and higher debt to income ratios.
VA has a unique qualifying
method. In addition to a standard debt
to income analysis, VA requires that the veteran and their family have a
certain amount of money left over each month to pay for expenses. This is one of the reasons that VA loans have
one of the lowest foreclosure rates.
Another great benefit to VA is that there is no mortgage
insurance, saving the veteran a lot of money over the life of the loan. There is a funding fee, but some veterans are
exempt. Just ask us.
VA requires that the home the veteran is purchasing is of
sound condition with no dry rot or termites.
They require a clear pest report before they will loan on the
property.
Veterans eligible for VA will have 90 consecutive days of
active service during wartime, or have served 181 days of active service during
peacetime, or 6+ years of service in the National Guard or Reserves. Also, if you are a spouse of a service member
who has died in the line of duty or as a result of a service-related disability
, you may qualify for a VA loan eligibility.
To start the process, you’ll need your Certificate of Eligibility. There are a few ways to obtain the C of E,
but the easiest way is to call us and have us access the VA portal for you. The Easterbrook Team makes the Loan Process
Easy.
