$0 down, lower interest rates, no mortgage insurance, low debt to income ratio requirements, no prepayment penalty, are just some of the benefits of using your VA loan.
Why use your VA loan with US?
I have a protective mentality for our Vets as someone served our country as well. The VA Loan is my Specialty in the Bay Area and California, and as someone who served in the military myself, we went through a lot to be “awarded” the VA Loan, and you deserve this.
I have observed many lenders that have overcharged and it is my passion to help our Veterans. If you have your financial ducks in a row, and many Veterans and families do, you can use your VA Loan up to whatever the lender qualifies you for per the 2020 VA Circular. I have helped an investor up to 2.5 million on a multi-unit but you can go much higher (depending on the investor) with a low interest rate- and even 0 down. Ask me how.
What changes took place in 2020 with VA Loan?
Blue Water Navy Vietnam Veterans Act of 2019 was very recently enacted on January 1st, 2020 so there is now no county limit for high cost counties in California. I recently helped a Veteran with a purchase of a 2.6 million, 4 unit property – we closed in 30 days. He was very happy.
About the VA Loan
The VA loan was designed to offer long-term financing to eligible American Veterans or their surviving spouses (provided they do not remarry). The basic intention of the VA direct home loan program is to supply home financing to eligible veterans and to help veterans purchase properties with no down payment.
The VA loan allows veterans 103.3 percent financing without private mortgage insurance or a 20 percent second mortgage and up to $6,000 for energy efficient improvements. A VA funding fee of 0 to 3.3% of the loan amount is paid to the VA to insure the loan; this fee may also be financed. In a purchase, veterans may borrow up to 103.3% of the sales price or reasonable value of the home, whichever is less.
Since there is no monthly PMI, more of the mortgage payment goes directly towards qualifying for the loan amount, allowing for larger loans with the same payment. In a refinance, where a new VA loan is created, veterans may borrow up to 100% of reasonable value, where allowed by state laws. In a refinance where the loan is a VA loan refinancing to VA loan (IRRRL Refinance), the veteran may borrow up to 100.5% of the total loan amount. The additional .5% is the funding fee for a VA Interest Rate Reduction Refinance Loan or IRRRL.
VA loans allow veterans to qualify for loan amounts larger than traditional Fannie Mae / conforming loans. VA will insure a mortgage where the monthly payment of the loan is up to 41% and sometimes 55% of the gross monthly income vs. 28% for a conforming loan assuming the veteran has no monthly bills.
Note: I advise having reserves in your bank account when submitting an offer in the Bay Area of California. There are many people that want to purchase and we will be competing with “all cash” buyers, 25-50% down payment conventional offers, etc. The VA Loan is an excellent product, BUT, the VA Buyer must be aware of competition and listen to advice of a VA Loan Realtor if one wants to increase chances of getting into a home.
| San Francisco, San Mateo, Alameda, Santa Clara, Contra Costa, Marin, County | VA ConformingLoan*** | VA JumboLoan*** | ConventionalConforming Loan * | ConventionalJumbo Loan |
| Loan Limit | $625,500 | $625,500+ | $417,000 | $417,000 |
| Down Payment | 0% | Based off purchase Price and county loan limit | 20% | 20%+ |
| Interest Rate | Best | Best | Best | Higher |
| Mortgage Insurance*** | Insured by Government$0/month | Insured by Government$0/month | Typically .7% of loan value | Can be higher |
| 3 year ARM | Yes | Yes | Yes | Yes |
| 5 year Arm | Yes | Yes | Yes | Yes |
*Conventional loans are those that can be sold to Fannie Mae or Freddie Mac and have limits for the High Cost SF Bay Area Counties as shown at this link
*** No mortgage insurance on VA loans typically saves the veteran hundreds of dollars in monthly mortgage payments and is sometimes a factor in loan qualification since the monthly payment is lower.
Other than this, the VA loan transaction process is similar to that of a residential or conventional real estate transaction. The “VA mortgage banking officers” typically guide Veterans through the process of determining the amount of a VA loan they are qualified for.
The VA loan also allows for more flexibility in regards to qualifying and has far less stringent guidelines than a jumbo loan. With the ability to get a much lower interest rate, and less money down, you have the ability to keep your mortgage payment the same, or less, than other programs while not tying up all of your reserves.
Without Dan we would’ve probably abandoned the idea of buying a home in the Bay Area. What he did for us to get the home of our dreams was nothing short of INCREDIBLE. He made sure we were clear on every step of the process, and his attention to detail was impeccable. He is one of the hardest working people we have ever met–period. Super efficient, responsive, honest, with the heart of a lion. He pulled MANY rabbits out of hats for us, and all the while he was very enjoyable to work with day to day. He always made us feel like we were his only client. You need Dan in your life if you are buying or selling. Our realtor for life!