Starting in late 2007 the mortgage industry as a whole started a general tightening of guidelines that has continued in dramatic fashion over the last 2+ years. Yet through all of this, VA lending has stayed pretty much the same as it was before the all the problems in the mortgage market began.
For non-VA loans there is no more 100% financing, credit score minimums have gone way up, conventional loans require 10% down for the most part, and income ratio standards have gone tightened considerably. But VA loans have really not changed that much. You can still get a VA loan with 100% financing, your credit score can be as low as 600, and the qualifying debt-to-income ratios for VA remain much more flexible than conventional loans and sometimes even FHA loans.
Some other benefits of VA loans:
- VA borrowers can get a second VA loan, third VA loan, etc.. You just can’t have more than one VA loan at once
- VA loan limits in California counties can be as high as $962,500 for 100% financing jumbo VA loan
- VA loan interest rates remain at historic lows
- Sellers can pay all of a VA borrowers closing costs
So it is worthwhile to consider using your VA benefits to purchase. With California and other state home prices being down, many active military VA borrowers can buy a house for LESS than their BAH housing allowance! And on top of this you get a $8,000 check from the IRS if you haven’t owned in the last 3 years and $6,500 if you are a move up buyer if you buy by April 31st 2010. And on top of that you have the standard mortgage interest and property tax write-off of owning a house vs. renting.
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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