As we all are aware of, many homebuyers have gone through hard times the last few years with high unemployment rates and falling home values. And some former home owners have lost their homes to foreclosure in the last few years. The good news for VA eligible active military and veterans who are eligible to get a VA loan is that you get a 2nd chance.
To get a California VA home loan after foreclosure, you only need to wait two years from the date of the foreclosure and you are technically eligible to apply for a new VA loan. You will need to have the exact date of the actual foreclosure sale. It will be two years following this date that you are eligible. Generally this date will show up on your credit report next to the reporting of the foreclosure. So if you had a foreclosure in say the spring of 2008, you are now possibly eligible to buy a new home with a 100% financing VA loan.
You will still need to have at least a 600 credit score to qualify VA loan. And you will have to have reestablished your credit. Make sure you have absolutely no derogatory credit items following the foreclosure. Do not be late on anything or have a collection items, charge-offs, etc… The VA lender is likely to look more favorable on your situation if they see the foreclosure as an isolated event. Also, you will need to have an explanation of why the foreclosure occurred and why it is likely to not happen again.
And here are some of the incredible and unique advantages of VA Lending for California VA Home Loan applicants:
- The VA loan limit in many counties of California can go up to $700,000 and above. So you can still get a jumbo VA loan to buy in the more expensive coastal areas of CA such as San Diego, San Francisco, Los Angeles, San Jose, Orange County and more.
- VA loan interest rates are still hanging around their historic lows
- VA lending requires NO down payment. They are 100% financing loans. All other loan types such as FHA and conventional require down payments!
- VA homeloans have NO monthly mortgage insurance (unlike FHA loans and conventional that do)
- The guidelines are very flexible to qualify VA loan. For a VA loan credit does not need to be perfect and debt ratios are much more flexible than FHA or conventional
- VA loan streamline refinances allow you to easily drop into a lower rate if you currently have a VA loan
Give me a call (858-922-7899) or email (firstname.lastname@example.org) if you have any questions or want to apply for a VA loan.
Sr. Loan Officer (and VA specialist)