Some Fast Facts About VA Home Loans
Who is eligible for a VA home loan? Active Military, Retired Military, Coast Guard, National Guard, and in some cases the Surviving Spouse.
What is the maximum VA Zero Down Home Loan Limit? The San Diego County VA Zero Down home loan limit for VA home loans closed through December 31, 2014, is $546,250. Samuel Scott Financial Group can fund VA home loans up to $1,500,000. VA has a special calculation for down payment for loan amounts exceeding the local Zero Down loan limit.
How is the VA Funding Fee determined? The VA Funding Fee is a percentage of the base loan (purchase price minus any down payment) and depends on the type of military service, down payment percentage, and whether or not VA benefits have been previously used.
Is anyone exempt from paying the VA Funding Fee? Yes. Veterans receiving VA compensation for service-connected disabilities and Surviving Spouses of veterans who died in service or from service-connected disabilities are exempt.
Can a veteran use their VA home loan benefits more than once? Yes! Veterans can re-use their VA home loan benefits provided that any previously used entitlement has been restored. In some cases, not all of a veteran's entitlement is completely used on a single transaction, and the remainder of the entitlement can be used to purchase a new primary residence.
What are examples of a VA home buyer's Non-Allowable closing costs? Loan closing, escrow or settlement fees, doc prep fees, notary fees, tax service fees, and lender origination fees that exceed 1% of the loan amount.
What are the options for covering these Non-Allowable closing costs?
- The borrower can pay a 1% origination fee to include all non-allowable fees and charges.
- The lender can give a closing cost credit to cover the non-allowable fees and charges.
- Traditional seller credit toward non-allowable fee.
What about PMI? There is no monthly mortgage insurance, ever!
Who takes care of the Pest Inspection and repairs? Veterans cannot pay for the actual pest inspection report. However, either the buyer or seller can pay for the actual repairs. Keep in mind that VA requires that both Sections 1 and 2 of the pest inspection report be cleared.
What are some of the VA Appraisal requirements? The home must be in decent condition with no health or safety issues. Lenders order the VA appraisal through the VA Portal (website) and the appraisals are then assigned by the VA to a VA approved appraiser. The VA appraiser then has up to 10 business days to return the report.
What is the waiting period for VA Home Loan financing after a major derogatory event, like a Foreclosure, Bankruptcy, or Short Sale?
- Foreclosure: 2 years from the date of the actual Trustee Sale
- Short Sale: 2 years from the date of the sale
- Bankruptcy: 2 years from the discharge date of a Chapter 7. For a Chapter 13, VA financing may be allowed after 1 year of timely payments with permission of the bankruptcy trustee.
Are you looking to purchase or refinance a home in San Diego County or any other part of California using your VA home loan benefits? Contact me today by calling 760-500-1919 and let's see what we can do!
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