Q: What is a VA streamline Loan?
A: A VA streamline loan is a special VA refinance loan for borrowers who currently have a VA Loan and want to reduce their VA interest rate. VA borrowers with existing VA loans use it to lower their current VA interest rate and payment in an easy, quick fashion. A VA streamline loan does not require income documentation, asset documentation and often does not require a property appraisal. A VA streamline loan also has a reduced VA funding fee and does not require a termite report and clearance. A VA streamline is also called a “VA IRRRL”.
Q:Does a VA home loan in California require a termite report and clearance?
A:Yes in every type of VA loan (except a VA streamline refinance), requires a full termite report and clearance of section 1 items.
Q:What is the minimum VA loan credit score?
A: The minimum VA loan credit score can change based upon the lenders appetite for risk, but right now VA borrowers generally need a 620 credit score to get approved for a VA home loan in California.
Q: What are the VA loan limits for California?
Below are the 2011 VA loan limits for 100% financing in California:
§ Alameda $1,000,000
§ Contra Costa $1,000,000
§ Los Angeles $700,000
§ Marin $1,000,000
§ Monterey $431,250
§ Napa $530,000
§ Nevada $431,250
§ Orange $700,000
§ San Benito $843,750
§ San Diego $537,500
§ San Francisco $1,000,000
§ San Luis Obispo $528,750
§ San Mateo $1,000,000
§ Santa Barbara $710,000
§ Santa Clara $843,750
§ Santa Cruz $706,250
§ Sonoma $478,750
§ Ventura $562,500
Any other county not listed here has a 100% financing VA loan limit of $417,000. You can get a VA loan above these limits in any county, but the VA borrower generally has to put down 25% of the difference between your purchase price or refinance amount and the county loan limit. So if you wanted to purchase a $900,000 house in San Diego County for example, your down payment would be: ($900,000-$537,500)=$362,500 and then $362,500X25%=$90,625. So you would have to put down $90,625 on a $900,000 purchase in San Diego County to get a VA loan.
Q: Can I have a co-borrower on a VA home loan?
A: VA financing only allows for you to have a spouse as a co-borrower or another VA eligible borrower. You cannot have a co-borrower on a VA loan that is not either your spouse or VA eligible themselves.
Q:Can I get a VA loan after a short sale in California?
A: Yes you can get a VA loan two years after your short sale closes. There is a special circumstance where you can get a VA loan immediately after a short sale if you did not miss any mortgage payments leading up to the short sale and you had an extenuating circumstance for having to short sell (relocation for job for example).
Q: How long do I have to wait after a foreclosure to get a VA loan in California?
A: You have to wait two years from when the deed transferred out of your name back to the banks name to get a VA loan in California after a foreclosure.
Q: How long do I have to wait after a Chapter 7 Bankruptcy in California to get a VA loan?
A: You have to wait two years from the date the bankruptcy 7 was discharged to get a VA loan in California. You also cannot have late payments on any items on your credit or any derogatory credit AFTER the bankruptcy 7.
Q:Can I get a VA loan if I am in the National Guard or Reserves?
A:Yes you can get VA financing if in the National Guard or Reserves. You have to have been with the National Guard or Reserves generally for six years, or if you have been called up to active duty this six year requirement is waived.
Q: What is the VA Funding Fee?
A: The VA Funding Fee is a fee charged by the VA itself to insure VA loans against default. The funding fee is not an out of pocket cost, it is rolled into the balance of the new loan. The VA funding fee can also be paid up front by the borrower if they choose. Veterans that have any disability rating (even as low as 10%) do not have to pay ANY funding fee.
Q: What are the VA loan documentation requirements to apply for a VA loan?
A: To apply for a VA loan, the basic documentation you will need is the following:
* Last 30 days job paycheck stubs, last two years W-2′s, last two years federal tax returns
* Last two months bank statements for your savings
* DD214 if you are a veteran
* Certificate of VA eligibility
* Loan application and credit check
Q: If I’m a veteran and I receive disability pay do I have to pay the VA funding fee ?
If you receive any VA disability pay at all the VA funding fee is waived. This is a huge benefit with VA financing and can save you thousands of dollars.
Q: Can I do a VA refinance loan from a non-VA loan to a VA loan ?
Yes you can do a VA refinance from a NON-VA loan to a VA loan. Sometimes you can go all the way up to 100% of the value you of your property and receive cash out refinancing from a non VA loan to a VA loan. This is especially a smart move if you have VA disability pay and the VA funding fee is waived for the refinance.
Q: Can I do a VA refinance loan on an investment property with a VA loan on it?
Yes you can do a VA streamline refinance loan on a property you formerly occupied as a primary residence that still has a VA loan on it. You cannot do a VA refinance loan on an investment property without a VA loan currently on it.
Q: Do I need a down payment to buy a house with a VA loan in California?
No VA loans are 100% financing! This is one of the very best aspects of obtaining VA financing to buy a home in California.
Q: Is my spouses credit report checked even if they are not going to be a co-borrower the loan when I apply for a VA loan in California?
California is a community property state, so even if a spouse is not going to be a co-borrower on the loan their credit report must be checked. However, their credit score is NOT a factor in getting VA loan approval. But any debt obligations (car payments, credit card payments, student loans) they have will also be counted in VA loan qualification.
Q: What are VA loan closing costs and how much are they?
The term “closing costs” refers to all the costs that are part of closing a VA loan. These costs generally range from 2.5%-3.5% of the purchase price. Many times they are paid by the seller in a purchase transaction. Below is a list of common closing costs on a VA home loan in California:
- Escrow fees
- Title insurance
- Property tax impounds (generally 6 mos)
- Home insurance impounds
- One year of home insurance
- Lender underwriting and processing fees
- Credit report fee
- Recording fee
Q: How do I get my VA loan certificate of eligibility?
We can pull your VA loan certificate of eligibility for you. Just email us and we will send you the VA loan request for certificate of eligibility form and we will pull your eligibility.
Q: Can I get a second VA loan?
In most cases you can only have one VA loan at a time. Unless your first VA loan was very low and did not use up all your VA loan eligibility and then you may be able to get a second VA loan. But if you have had a VA loan before and have sold or refinanced the property, you can absolutely re-use your VA loan eligibility. Give us a call and we can pull your VA loan certificate of eligibility for you.
Q: Can I get a VA loan even if I have bad credit?
Your credit may be good enough to get a VA loan even if you think you have bad credit. Give us a call and we can do a VA loan credit check for you and counsel you on how to raise your VA loan credit score. Or you may be surprised and we can do the VA loan with your current credit score.
Q: Is there a way to quickly raise my VA loan credit score?
Yes. We have a tool that we use that can help you quickly raise you VA loan credit score. First we work with you to analyze your current VA loan credit report. They if there are any items you can have removed or accounts you can pay off or pay down, we have a way of quickly reporting these changes to the credit bureaus so your VA loan credit scores are updated immediately.