VA Mortgage Loans in California

Let's dive into some helpful info about VA Mortgage Loans in California. For those eligible, a California VA (Veterans Administration) guaranteed home loan generally provides the best loan options for active, non-active, Reserve, National Guard, and retired military of the armed forces.  Biggest reasons?  

• No down payment needed
• No private monthly mortgage insurance required

VA mortgage loans in California can be used towards purchasing a home, building a home, or refinancing an existing mortgage.

More than 27 million veterans and active-duty personnel are eligible for VA financing, yet many aren’t aware it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement?

VA Does Not Offer Loans Directly and Does Not Guaranty You Will Qualify.

The VA does not actually lend the money to you directly. They offer a guaranty (25% of the loan amount) to a lender that if you should default on the loan, they will pay the lender a percentage of the loan balance.  Think of it like an insurance policy you pay on your car:  When you get into an accident the insurance company reimburses you for fixing the car.  With the VA guaranty, instead of you being paid, the insurance pays the lender.

*The word GUARANTY does not actually guarantee the veteran will qualify for a VA home loan.

Primary Benefits of a VA Mortgage in California:

• 100% financing
• No monthly private mortgage insurance is required
• There is a limitation on buyers' closing costs
• The loan is assumable, subject to VA approval of the assumer’s credit
• 30 year fixed loan
• Seller can pay up to 4% of the veterans closing costs and even pay down the buyer's debt to help lower their debt-to-income ratio
• Interest rates are at least as good as—if not better than—other loan options
• You don’t need perfect credit