VA home loans for veterans and active military are probably the best home loans available today. Here are some of the highlights:
- 100% financing – so you need zero down
- No monthly mortgage insurance (unlike FHA and conventional loans with less than 20% down)
- You do not need perfect credit, in many cases 100% VA loans are still possible with credit scores below 600
- Flexible income qualifications
- Active military can “gross up” their BAH and BAS pay because it is not taxed. Grossing up means we can multipy it by 125% and it allows you to qualify for a larger loan
- Veterans can gross up VA disability pay because it is not taxed
- Sellers can pay for all of a VA buyers closing costs (so you can technically buy a house with almost no money out of your pocket)
Here are some miscellaneous items to remember when applying for a VA loan:
- In California (and other “community property” states) even if your spouse is not going on the loan, we will have to factor in their debt obligations (but not their credit score)
- Be prepared with your last 2 years w-2, last 30 days paystubs (or LES for active military) for qualification. We can obtain your certificate of eligibility for you
- Please have an explanation for any major derogatory items on your credit (late payments, collections, charge offs)
- If you are thinking of buying a car, it’s best to put that on hold until you buy your house. The car payment will factor into the purchase price of a house you can qualify for, so it’s best to put this off until AFTER you buy your house
- Please explain any allotments on your LES
- You’ll need 2 years after discharge of a bankruptcy 7 to qualify for a VA loan
- If you receive child support we can count this as income, if you pay it we must count it as debt
So if you are not a home owner and you are active military or a veteran, I highly encourage you to look into using your VA benefits to purchase a home. You have an advantage over every other home buyer out there in that you can obtain 100% financing!
Please don’t hesitate to call or email with any questions you might have regarding VA home loans.
Warm Regards,
Rob Chomentowski
Sr. Loan Officer (and VA specialist)
858-922-7899 (direct)
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