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
Frequently Asked Questions:
Q: My parent is a veteran. Can I obtain a VA loan if I have not served in the military myself?
No, the VA loan benefit does not extend to a veteran's children.
Q: What is required to prove my record of military service?
Veteran or former National Guard, activated for Federal Active Service, your DD214; for active-duty, a Statement of Service from your commanding officer; discharged National Guard, never activated for Federal Active Service, either NGB Form 22 or 23.
Q: My spouse who has passed away was an eligible veteran. Am I eligible for the home loan benefit myself?
A surviving spouse is eligible if they have not remarried, and the eligible veteran died during active-duty service or as a result of a service-related disability.
Q: Is a VA loan better than a conventional mortgage?
In many cases, yes. VA guaranteed loans often offer a lower interest rate than conventional mortgages, unlike conventional and FHA loans, they do not require monthly mortgage insurance when borrowing more than 80% of a home's value, and getting approved can be easier than with other loan types.
Q: How long does it take to get approved for a VA loan?
It varies depending on the current workload of your lender, but it is typically the same as for conventional mortgages. An approval to purchase can come in as little as 2-3 days. Once you’re in contract to purchase, the closing process will take anywhere from 3 weeks to 45 days.