VA lending to active military and veterans remains the incredibly flexible, 100% zero down home loan it always has been as other types of home loans continue to significantly tighten their lending guidelines.
Here are some examples:
VA loan credit score:
You can still get a 100% zero down VA loan with a 600 credit score where FHA you need to be at 620 (in most cases) and sometimes 640. Conventional if you are putting less than 20% down you generally need a 720 credit score
VA loan cash out refinance
VA allows up to 90% loan-to-value on a cash out refinance where FHA and conventional loans do not allow you to go up this high on loan-to-value.
Debt-to-income ratios to qualify VA loan
VA is more concerned with a VA borrowers “residual income”, how much a VA borrower has left every month after paying income taxes, housing payment and other debt obligations. FHA and conventional home loans are more concerned with a borrower’s debt-to-income ratio. So a VA borrower can have a higher debt-to-income ratio than FHA or conventional loans would allow and still qualify for a VA loan.
So those are just three of many really significant areas where VA home loans have not changed and FHA and conventional loans have tightened substantially.
Some other highlights of VA lending:
- VA loan limits in many parts of California such as Los Angeles, San Diego, San Francisco, San Jose and Orange County can go all the way up into $900,000 range with zero down
- VA loan interest rates on 30 year fixed home loans are still ridiculously low historically
- VA loan streamline refinances allow VA borrowers to drop their rate easily once they have a VA loan
Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions or want to apply for a VA loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and VA specialist)
858-922-7899
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