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 because there is no down payment needed and no private monthly mortgage insurance required. In Orange County, the CalVet loan program is also an option, but lately not a very good option.
A VA home loan can be used to purchase a home or refinance an existing mortgage anywhere in Orange County, CA. The VA loan Orange County 100% financing limit is $668,750 in 2013. The limits will be announced shortly for 2014.
We will discuss what role the VA plays in a VA guaranteed mortgage, the benefits of a VA home loan for Orange County veterans, who is eligible for a VA loan, and the VA documentation you will need to present to your lender.
Did you know that more than 27 million veterans and service personnel are eligible for VA financing, yet most aren’t aware it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement? This is especially typical in Orange County, where VA loan limits have typically not been high enough to purchase a home.
VA Does Not Offer Loans Directly and Does Not Guaranty You Will Qualify.
VA does not actually lend the money to you directly. They offer a guaranty to a lender that if you should default on the loan, they will pay the lender a percentage of the loan balance. The word GUARANTY does not actually guaranty the veteran will qualify for a VA home loan.
Primary Benefits of a VA Home Loan:
- 100% financing, in Orange County, to $668,750 in 2013.
- No monthly private mortgage insurance is required
- There is a limitation on buyers closing costs
- The loan is assumable, subject to VA approval of the assumer’s credit
- 30 year fixed loan and 15 year fixed.
- Seller can pay the veterans closing costs and even pay down your debt to help lower your debt-to-income ratio
- VA Mortgage Interest rates are similar to FHA rates
- You don’t need perfect credit
Who in Orange County is Eligible for a VA Home Loan?
Veterans with active duty service, that was not dishonorable, 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.
Veterans with service only during peacetime periods and active duty military personnel must have had more than 180 days of active service. Veterans of enlisted service which began after September 7, 1980, or officers with service beginning after October 16,1981, must in most cases have served at least 2 years.
VA Documentation Needed:
The three specific pieces of documentation a lender will need to determine your eligibility is a DD214 for discharged veterans, a statement of service for active military personnel, and a certificate of eligibility (COE) to determine you have VA entitlement.
Because each lender has different qualifying guidelines, the next step is to contact your Orange County Direct VA lender to find out if you meet their qualifying criteria such as minimum FICO/credit scores, debt-to-income (DTI) ratios, and find out what your county’s maximum loan amount is. Your lender can help you attain your certificate of eligibility on your behalf.
Frequently Asked Questions:
Q: Are the children of a living or deceased veteran eligible for the home loan benefit?
No, the children of an eligible veteran are not eligible for the home loan benefit.
Q: How can I obtain proof of military service?
Standard Form 180, Request Pertaining to Military Records, is used to apply for proof of military service regardless of whether you served on regular active duty or in the selected reserves. This request form is NOT processed by VA.
Rather, Standard Form 180 is completed and mailed to the appropriate custodian of military service records. Instructions are provided on the reverse of the form to assist in determining the correct forwarding address.
Q: Is the surviving spouse of a deceased veteran eligible for the home loan benefit?
The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit.