Our VA lender specialists can provide a complete list of minimum war-time service requirements
This list is an overview; if you do not fall into one of the categories listed above, we can check further to see if you may qualify for one of the less common groups eligible for VA benefits.
In order to sustain the home loan guarantee program, the Department of Veterans Affairs collects a Funding Fee for each transaction.
*The higher subsequent use fee does not apply if the veteran’s only prior use of entitlement was for a manufactured home loan.
chargeable to the borrower and the initial deposit for the tax and insurance account.)
Resale SFR: | Automatically approved | New SFR: | Check for builder VA Approval | Resale Condo: | Check for complex VA approval |
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New Condo & Conversions: Check for complex VA approval
The VA requires that a condominium complex be VA approved before they will guarantee a VA loan. Many properties in San Diego are already approved and on the VA list. However finding out if your listing is approved is a complex process. If the listing is not approved, we can help them get approved if the HOA is cooperative.
If you’d like to search properties on your own, the VA site to do that is:
However, if you can’t find the approval that does NOT mean it’s not approved. Most of the complexes are difficult to find because they’ve been listed under alternate names.
Property Condition
Appraisers:
• Appraiser assigned by VA
• ‘supposed’ to be completed in same time
• Has a max of 10 business days to complete
Property must be:
• SAFE
• SOUND
• SANITARY Any problem cited by the VA appraiser must be corrected prior to the loan closing.
Termite Report:
• Termite Clearance is always required
• Section 1 work must be completed
CalVet Difference from VA
• Max loan is $521,250
• • Rates
• Interest Rates change only after significant market movement, Last change 6/26/08
• Rates are sometimes better, sometimes worse
• • Less liberal income & credit guidelines
• • DTI guidelines are nearly 20% lower
• Generally more “it depends” driven, with Pre-Approvals being difficult unless it’s a solid buyer.
• Zero Refinance opportunities
• Must remain Owner Occupied
• Longer Turn Times (45-60 days)
• Not as User friendly or proactive as VA
CalVet Niches
Manufactured Homes on Leased Land CalVet is probably the only lender that will even do these as real property, and not personal property
Times when Rates climb rapidly, CalVet rates will be better
VA JUMBO
• Loans up to $1,000,000
• • Some Down Payment Required
• Formula, not a fixed percentage
• (Purchase Price -$593,750) / 4
• Similar Interest Rate as normal VA loans
• Same Rules as normal VA loans
JUMBO Example
Purchase Price $1,000,000 Down Payment Required: $101,562 ( roughly 10%) VA Loan: $898,437
Summary
•Why use VA?
• Zero Down
• No PMI
• Lower Rates
• Reasonable qualification guidelines
•When to use VA?
• Zero Down
• Marginal Credit
• Disabled Vet
Yes, you can use it for refinancing as well, but the math is different.
VA Myths & Reality
VA purchases take longer: NOT TRUE
The VA does include extra work on the Lending side, but purchase can be closed in 30 days
Sellers lose money on VA purchase: NOT TRUE
There is a misconception that because the buyer cannot pay certain costs that the seller must shoulder them. In reality the lender or seller can pay these costs.
VA appraisals are slower: Partially true
VA appraisals are supposed to take as long as a regular appraisal. However, VA appraisers are given a maximum of 10 days to complete the appraisal. In today’s slow appraisal market we’ve had zero problems with appraisal being done quickly.
VA appraisals come in below market: NOT TRUE
VA appraisers are encouraged to help the buyer complete the transaction. If the appraisal comes in below the offer, they actually have to do a bunch of extra paperwork.
VA appraisals call for unnecessary repairs: NOT TRUE
VA appraisals require the home to be Safe, Sound, and Secure. If something does not meet these guidelines it will be called out for repair. These issues will be typical of any appraisal, VA or not, so the VA is no different in that regards. There is no restriction on who pays for these repairs.
You don’t get to choose the VA appraiser: TRUE
VA appraisers are chosen by The Appraisal System (TAS). Whatever appraiser is assigned is the only appraisal you can get. There are about 50 VA appraisers in San Diego, and they just had a class to add about 12 more.
Eligibility is a pain to determine: NOT TRUE
Lenders have an automated certificate of eligibility system, that allows instant access to most military members COE. This is something that should be taken care of along with the pre-approval.
I can get a VA loan from anywhere: TRUE
Nearly all loan brokers and direct lenders have access to VA loans. However, not all are VA approved and most don’t have the VA experience you need to know the deal will get done.
Frequently Asked Buyer Questions
How do I get my Certificate of Eligibility?
Our online approval system can get your Certificate in minutes! If the veteran is not in the database, we can order it online and typical VA turnaround times are 2 weeks. However, if we know the veteran will be eligible and just don’t have the certificate yet, we will still issue a Pre-Approval letter, and this should not delay shopping, or putting in offers.
How do I qualify for a VA Loan?
There is an array of compensating factors that will qualify you for your loan. The primary information is income, and credit. If that documentation can be provided we can qualify a buyer in about 1 hour.
How do I get my Pre-Approval Letter?
As your full service Lender, we will provide this for you and your Realtor. We actually will provide the pre-approved amount via email, and only produce the actual pre-approval letter once a contract is initiated. That way we can ensure our pre-approval matches the offer, and doesn’t undermine any negotiating options.
Am I limited to buy a property under the VA Maximum Limit of $417,000?
NO! Many lender have stayed with the old $417,000 limit, but you are not limited to that despite what they tell you. You can actually go to $593,750 in San Diego, and if you have a small down payment, the VA can go up to $1,000,000.
Is it true that I can do 100% financing with no money down?
ABSOLUTELY!
What is the Funding Fee about and for?
The Funding Fee enables the VA to guaranty your loan. In turn, the guaranty protects the lender against loss if the payments are not made; therefore encouraging lenders to offer veterans with more favorable terms.
Does the VA Guaranty also guarantee the condition of the house on contract?
NO! VA only guarantees the Loan. A proper inspection performed by a qualified residential inspection service is highly recommended.
Our thanks to Military Home Assistance for providing much of the information provided above.