This article is about the basics you need to get started in applying for a VA home loan. First of all, VA home loans are a tremendous benefit for active military, veterans and reservists. VA home loans are 100% financing home loans with no monthly mortgage insurance and very low 30 year fixed interest rates. So if you are active military, veteran, or reservists and you are looking at buying a home, this loan should be the first loan you look at. Now for the steps needed to get started with a VA loan in San Diego.
- First you want to contact a loan officer that is very familiar with VA home loans to go over your income and credit to see if you have the basics to qualify, and what home price you can quality for.
- Below is a list of documentation you will need to provide the loan officer for the process of qualifying you for a VA home loan:
- Certificate of VA eligibility (ask your loan officer for this form to fill out and return the form to your loan officer and they will pull your eligibility for you)
- Last 30 days paycheck stub
- Most recent two years w-2
- Most recent two years federal tax returns all pages
- Last two months bank statements to show cash reserves in the bank
- Photo copy of driver’s license and social security card
Those are the basic items you will need to get started with a VA loan in San Diego. Once you speak with a loan officer, complete the loan application and provide all the documentation above, the loan officer can provide you with a pre-approval letter and you are good to go to look for a new home! If you have any questions at all about VA home loans or any other types of home loans in California don’t hesitate to call 858-922-7899 or email .
Sr. Loan Officer (and VA specialist)
We have a special niche in the market where we are able to qualify borrowers for a VA jumbo home loan only one year after a short sale in San Diego (this applies to all of California). You only have to wait for 12 months to pass before you can once again fully qualify for a jumbo VA loan.
What is a VA jumbo loan? A VA jumbo loan is a VA loan that is over $417,000. Many lenders will require you to wait 3-7 years after a short sale to apply for a VA loan if it is over $417,000. We do not have this restriction.
You want to make sure that your credit has no derogatory items in the 12 months following your short sale. Make sure everything has been paid on time and there are no issues.
VA loan limits are very high across the state of California. Below are some examples of VA loan limits in high population counties:
-Los Angeles and Orange County:$668,750
-San Diego County: $500,000
-Alameda, Contra Costa, Marin, San Francisco, San Mateo: $987,500
You can go above these loan limits you just have to put down 25% of the difference between the purchase price and the VA loan limit for you county. Please call or email if your county is not listed above.
So I hope this is exciting news for you that you can qualify for a VA jumbo loan only one year after a prior short sale. Don’t hesitate to call 858-922-7899 or email email@example.com if you have any questions regarding getting a VA home loan in California.
Sr. Loan Officer (and VA specialist)
Many VA eligible home owners in California have what are called Cal Vet home loans on their homes. These loans are similar to VA loans and are many times insured by the VA. Cal Vet does not offer a streamline refinance for these owners to lower their interest rates. But the great news is that for many Cal Vet loans, the owners can do a streamline refinance from a Cal Vet loan to a VA loan. Streamline loans are a tremendous way for VA eligible borrowers to dramatically lower their interest rates and payments in a very easy painless fashion. Below are some benefits of the Cal Vet to VA streamline refinance:
- No income documentation required
- No asset documentation required
- No appraisal required
- Even if you no longer live in the home as your primary residence we can do a streamline refinance for you to lower your rate
- Many times the Cal Vet to VA streamline refinance can be done at no cost to the borrower
- VA 30 year fixed interest rates are still hovering around all time lows
- Low credit scores are OK
The best way to get started is to give me a call (858-922-7899) or email (firstname.lastname@example.org) and I can check your VA eligibility to see if you are eligible for the Cal Vet to VA streamline refinance.
When an active military member or veteran has not used their VA loan eligibility before or has had their VA loan eligibility fully restored that have what is called “full entitlement”. This means they can get a VA home loan for 100% of the VA county loan limit of whatever county they are purchasing in. San Diego County’s VA loan limit is $500,000, so a VA borrower with full entitlement could go zero down to $500,000. This article is about partial entitlement. Partial entitlement is a calculation that comes about when a VA borrower has used some or their VA loan entitlement, but not all. This calculation determines how much loan a borrower is entitled to with zero down payment when they have partial entitlement.
Partial entitlement can come about for a few reasons below:
- VA borrower has previous purchased a home with a VA loan they have not sold yet and would like to purchase another home with a VA loan
- VA borrower has a previous short sale, bankruptcy, foreclosure in which a previous VA home loan was not fully paid back upon sale
So the good news is even if one of the above situations has occurred, you may still be eligible for a 100% financing VA home loan. Below I will give some examples:
- Veteran has used $42,000 in entitlement that can’t be restored because he/she still owns the home with a VA loan on it. Veteran wants to buy a home to live in Los Angeles County with a VA loan limit of $668,750. Here is the calculation for the maximum home they can buy with zero down. $668,750 X .25% = $167,187 maximum guarantee. $167,187 – $42,000=$125,187 entitlement available. $125,187 X 4 = $500,784 max VA home loan with 100% financing. So you could have used $42,000 of your entitlement but STILL be able to buy a $500,187 home in LA County with a VA home loan. And you can always go above $500,784 if you put down the difference
- Veteran has used $33,000 in entitlement that can’t be restored because he/she had a short sale on a prior home they bought with a VA loan. Veteran wants to buy a home in San Diego County with a VA loan limit of $500,000. $500,000 X .25 = $125,000 maximum guarantee. $125,000 – $33,000 = $92,000 entitlement available. $92,000 X 4 = $368,000 max VA home loan with 100% financing. So even if a VA borrower had a former short sale with a previous VA loan using $33,000 in entitlement they could still qualify for a $368,000 purchase with a zero down VA home loan in San Diego County.
- Veteran has used $25,000 in entitlement that can’t be restored because they declared Chapter 7 bankruptcy and included a previous VA home loan in the bankruptcy. Veteran wants to buy a home in Riverside County with a VA loan limit of $417,000. $417,000 X .25 = $104,250 maximum guarantee. $104,250 – $25,000 = $79,250 entitlement available. $79,250 X 4 = $317,000 max VA home loan with 100% financing. So even if a VA borrower had a Chapter 7 bankruptcy with a previous VA loan using $25,000 in entitlement they could still qualify for a $317,000 purchase with a zero down VA home loan in Riverside County.
So those are three different examples of how partial entitlement works for getting a VA home loan. As you can see this calculation can be different for each California County depending on that counties VA loan limit and also how much of a veteran or active military members previous entitlement has been used. The first step is to get you most recent VA eligibility form that will tell you how much entitlement you have left. Please don’t hesitate to call or email us as we can get this for you. The second step is to run the partial eligibility calculation. Don’t hesitate to call us at 858-922-7899 or email us at email@example.com for assistance with this calculation.
The great news is that even if you still own a home with a VA loan or had a distress sale in the past with a VA loan, you still may be eligible to buy a sizable home with zero down using your VA benefits.
Sr. Loan Officer (and VA specialist)