VA Purchase Loans | Orange County, California VA Loans - Tim Storm

Does a Condo in Orange County Need to Be VA Approved for a VA Loan?

January 10, 2016 by Tim Storm

Does a condo in Orange County need to be VA approved for a VA loan?

This is a question that comes up quite a bit for eligible California Veterans looking for a home to purchase. While detached Single Family Homes don’t need to be “approved”, the purchase of condo does need to be within a condo project that has been approved by VA.

The Veterans Administration wants to make sure that a condo being purchased by a Veteran is within a project that has solid financials, no lawsuits, and no unexpected assessments in store for the unsuspecting buyer. So while it may seem frustrating that not all projects are VA approved, it is nowhere near as frustrating as it would be if the condo you buy ended up costing much more monthly because of suddenly increased Home Owners Association Dues.

How Do I Find VA Approved Condos in California?

Depending on the county you live in, it may not be easy to find VA approved condos. But with a little knowledge and some work, you will find that there are a lot of VA approved condo projects in California. VA has a condo lookup site which is used to verify if a particular condo project is approved or not. It ends up being a tedious process since you are first finding condos that meet your requirements only to find out that many are not approved.

To make it even more tricky, many condo projects are not listed by name. Rather, they are listed by Tract number. But Tract number is not something most home buyers will be able to find for the condo they are looking at. For this reason it is important to work with a California VA loan specialist who can help with the condo search. Even better, the VA loan specialist can work with your real estate agent to narrow the search to just VA approved condo projects, saving time and frustration.

Shortcut to Finding VA Approved Condos in California

Some counties within California may have local VA specialists who have put together websites helping to quickly narrow down the search for VA approved condos. In Orange County, www.OrangeCountyVACondos.com provides links for VA approved condos for sales within each city. A Veteran looking for a VA approved condo in Irvine or a VA approved condo in Mission Viejo can quickly find homes by just clicking on the appropriate link.

Your local California VA Loan Officer will be able to provide custom VA loan scenarios based on your financial goals and qualifications.

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loan. MLO 223456. – Please contact my office at the Home Point Financial. My direct line is 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

Filed Under: VA Purchase Loans Tagged With: finding va approved condos, orange county va approved condo, va approved condos

Finding a VA Approved Condo in Orange County the Easy Way

June 30, 2015 by Tim Storm

Finding a VA approved condo in Orange County, CA just got easy. While most homebuyers and their real estate agents will first search for a condo and then go through the tedious process of finding out if the condo is even in a project that is approved for VA financing, there is now a website that is specifically for VA approved condo projects in Orange County.

OrangeCountyVACondos.com – VA Approved Condo Search

At OrangeCountyVACondos.com an Orange County Veteran looking for a condo can quickly find VA approved condos in the city of their choice. The site is first broken up into four sections of Orange County. Each city is listed as well. For example, if a buyer wishes to find VA approved condos in Irvine, all they need to do is click on the appropriate Irvine link, and wallah, you are presented with the list of condos, including information on each condo along with photo’s.

Make Sure the Condo is VA Approved Before Making an Offer to Purchase

It is important to double check to make sure the condo you choose to make an offer to purchase on is still VA approved. An experienced VA lender will be able to quickly verify. It is also very important to talk with an Orange County VA lender who can quickly prepare custom VA loan scenarios and work on the PreApproval. By figuring out the financing before making the offer there is a far better chance of having success with not only getting the office accepted but also actually closing escrow.

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loan. MLO 223456. – Please contact my office at the Emery Financial. My direct line is 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

Filed Under: VA Mortgage, VA Purchase Loans Tagged With: va approved condos

5 Myths about the VA Loan Program | Orange County, CA

January 22, 2015 by Tim Storm

VA loans are probably the most misunderstood mortgage program in Orange County, CA. Real estate agents, Loan Officers, home sellers, and even eligible Veterans often receive incorrect information when they inquire about the VA loan program. A recent VA survey found that approximately half of all military veterans do not understand the VA loan program and how they can benefit from it. With this in mind, below are 5 myths about VA loans that Orange County Veterans, and anyone involved in the sale of a home with VA financing, should know and understand.

Myth 1: The VA Loan benefit has a “one time” use.

Fact: Veterans and active duty military can use the VA loan many times. While there is a limit to the Veterans entitlement which determines the amount of VA loan the VA will guarantee, it is important to know that even if the entitlement was used on the previous purchase of a home, once restored, it can be used again. Also, if the borrower has an outstanding VA loan, it is possible to get another VA loan. If the entitlement available is exceeded with the new purchase then a down payment would be required. But the down payment, in many cases, would still be less than that required by other types of loan programs. In Orange County, where the 2015 VA loan limit is $625,500 for 100% financing, there is “bonus entitlement” available for Veteran because of the it is considered a “high cost” area.

Myth 2: VA home loan benefits expire if they are not used.

Fact: For eligible Veterans and active duty military, VA mortgage benefits never expire. This myth most likely comes from the confusion over the Veteran benefit for education. In most cases the Montgomery GI Bill benefits expire 10 years after discharge. But VA mortgage benefits do not expire. It is not uncommon for a Veteran 30 years removed from the military to use the VA loan program for the first time to purchase a home for $625,500 or more in Orange County. The down payment is less ($0 if the price is under $625,500), there is no mortgage insurance, and the interest rates tend to be better than other types of financing.

Myth 3: A Veteran can only have one VA loan at a time.

Fact: You can have two or more VA loans out at the same time as long as you have not exceeded your entitlement and eligibility. Although, as mentioned above, it is possible to exceed the entitlement by coming in with a down payment. It is not uncommon for someone who is moving to Orange County from out of state to purchase a home with a VA loan while already having a VA loan on their out of state property, which has been turned into a rental. Because Orange County has a higher VA loan limit (and bonus entitlement) than most counties throughout the country, Veterans moving from out of state, or even from a low limit California county, will be able to take advantage of their “Bonus Entitlement” that is available in high cost counties like Orange County.

Myth 4: If a borrower has a short sale or foreclosure on a VA loan, they cannot have another VA loan.

Fact: If an Orange County Veteran has a claim on their entitlement they may still be able to get another VA loan. But the maximum amount they would qualify for may be less. VA is actually more flexible than other types of mortgage programs when it comes to the waiting period required after a bankruptcy, short sale or foreclosure. VA only requires a two year wait period for any of these events. FHA requires 3 years after a foreclosure. Fannie Mae and Freddie Mac require 7 years after a foreclosure.

Myth 5: The seller has to pay all of the Veterans closing costs

Fact: The Veteran is allowed to pay most of the closing costs without any restrictions. There are certain costs that are known as “non-allowables”. Non-Allowables are primarily made of up the escrow closing fee and the lender fees. However, the VA borrower is allowed to pay up to 1% of the loan amount towards “non-allowables”. Since most VA lenders do not charge an Origination Fee and will waive lender fees on VA loans, the 1% allowance covers the other non-allowable costs, meaning that the seller does not need to help the Veteran with closing costs. Just like any real estate transaction, everything is negotiable. In Orange County, where a typical VA loan is higher than $300,000, and can easily be higher than $600,000, that 1% allowance more than covers the non-allowables. Also, in many cases the lender can use a “lender credit” to cover the closing costs for the buyer. So it is still possible for a VA buyer to have no down payment and pay no closing costs (a VA No No) without any help from the seller.

The most important first step in the home buying process is getting Prequalified for the loan. For Veterans in Orange County, working with a local VA Loan Specialist is important. The VA loan officer should be able to prepare custom loan scenarios and present them in a unique manner that makes it easy to understand the options available.

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loans. MLO 223456 – Please contact my office at the Emery Financial. Direct line at 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA IRRRL loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

Filed Under: VA Mortgage, VA Purchase Loans Tagged With: va loan myths

Orange County Home Sellers Who Don’t Accept Offers from VA Buyers are Losing Money

January 6, 2015 by Tim Storm

Home sellers in Orange County who don’t accept offers from VA buyers may be losing money. Not taking all offers seriously is a bad strategy in any situation, but avoiding offers from a Veteran using VA financing is just bad all the way around. There are several reasons why there is a perception that VA buyers may not make it to the closing table, but there are plenty of reasons why VA buyers actually do close, and most likely at a higher close rate than other types of loans.

Myths about the VA Loan Program

There are several myths about the VA loan program which seem to get in the way of common sense thinking. Below are a few of those myth’s.

Myth 1 – The seller is required to pay closing costs for the VA buyer. This is not true. While there are certain closing costs that are known as “non-allowables”, the VA buyer is allowed in many cases to pay those costs. In the old days, which for this article we’ll say is back in the 90’s, it was common for the seller to pay closing costs for the VA buyer. At the very least they would pay the “non-allowable costs”. The Non-Allowables include the lender admin fees (underwriting, processing, etc), escrow closing, notary, and a few other smaller fees. However, if Veteran is allowed to pay up to 1% of the loan amount in “non-allowables” if there is not a 1% Loan Origination Fee. In most cases lenders do not charge a loan origination fee on VA loans. Many lenders don’t even charge a lender fee. This means there is only the escrow closing fee, which in most cases is less than 1% of the loan amount. Even better, many lenders offer VA loan options where there is a lender credit going back to the VA buyer that will cover all closing costs and prepaid expenses. Other than typical termite clearance fees, which are common on any real estate transaction, a seller shouldn’t have to pay any closing costs for the VA buyer unless they want to.
Myth 2 – The VA appraisal process is stringent and the valuation is conservative. This also is not true. While the VA appraisal process is a little different than for Conventional financing, the valuation process is no different than any other type of appraisal. As a matter of fact, most VA appraisers are also Conventional loan and FHA appraisers. They will be looking at the same sales comparables and making the same adjustments no matter what type of appraisal they are doing. A VA appraiser will be looking for safety issues with the property (FHA does this as well). So if there are holes in the floor, loose wires hanging from sockets, broken windows, or peeling lead based paint, then the VA appraiser may call that out and require repairs. However, most buyers using any type of financing will have a Home Inspection Report completed, which would be calling out the same repairs. This should not be a concern.
Myth 3 – The VA buyer has no “skin in the game”, making their offer weak. This couldn’t be further from the truth. An interesting fact about the VA loan program is that it has the lowest default rate of any type of loan program, even though there is no down payment required in most cases. Veterans have character and have proven that they will stay within their budget and meet their obligations.In most cases, the VA buyer should have been Prequalified or PreApproved before making the offer on the home. The seller is going to get paid whether the Veteran buys the home with all cash or uses 100% financing. (I recently had a Veteran in Orange County make an offer on a home in the $600,000 price range. It would have been a 30 day escrow. The seller ignored the offer and accepted an offer with Conventional financing that was $10,000 under the VA buyers offer. Thus, this article.)

There was recently a great article in the LA Times titled “Sellers who ignore VA buyers are missing out” which makes several strong points about why sellers should take an offer from a VA buyer seriously.

The Truth About VA Loans in Orange County, CA

The truth is that the VA loan program in Orange County is very strong. The 2015 VA loan limit for Orange County is $625,500. This means an Orange County Veteran can purchase a home with no down payment up to that amount. But it is also possible to get a Jumbo VA Loan, which is what happens when a Veteran purchases a home with VA financing that is higher than the VA loan limit for 100% financing. Many local Orange County, CA VA lenders will lend as high as $1,500,000 on a VA loan. There is a down payment required, but not much. The down payment is equal to 25% of the difference between the $625,500 loan limit and the purchase price. For example, if a Veteran is buying a home for $825,500 (and even $200,000 above the limit) then the down payment would be $50,000 and the VA loan would be $775,500. That works out to only 6% down payment for the Veteran on an $825,500 price. Along with the other benefits to the Veteran of having no monthly mortgage insurance, competitive 30 year fixed rates, flexible qualifying when it comes to credit and debt to income ratios,this makes the VA loan program an excellent option for both the VA buyer and the seller.

The first step for the VA Buyer is to talk to an Orange County VA loan specialist who can prepare custom loan scenarios based on the Veterans long and short term financial goals. A VA specialist should be able to educate the buyer on how the numbers work and how it will fit in to their budget. By the time a VA Buyer is ready to make an offer on a home they should already know all they need to know about the financing.

Authored by Tim Storm, a California Mortgage Loan Officer MLO 223456 – Please contact my office at the Emery Financial. Direct line at 949-640-3102. www.OrangeCountyVALoans.com. I prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

Filed Under: VA Mortgage, VA Purchase Loans Tagged With: orange county va loan, va buyers, va sellers

Orange County, CA : Real Estate “Heading in the Right Direction”

September 25, 2014 by Tim Storm

After several years of most Americans having a low opinion of the Real Estate sector, it appears things are finally changing. Real Estate in Orange County, California has definitely made a nice comeback in the last couple of years as interest rates have remained low. Orange County real estate has benefited from the high loan amounts allowed by government loan programs, especially the VA loan. In 2014 a Veteran can purchase a home (in Orange County or Los Angeles county) for $687,500 with no down payment. And for a lesser down payment that required on other types of financing a VA loan can be as high as $1,500,000. As more military Veterans who realize how good the VA program is, and that they’re are probably eligible for it, the program has become very popular.

In a recent Gallup poll, Americans were asked to rate 24 different business sectors and industries on a five-point scale ranging from “very positive” to “very negative.” The poll was first conducted in 2001, and has been used as an indicator of “Americans’ overall attitudes toward each industry”.

For the first time since 2006, Americans had an overall positive view of real estate, giving the industry a 12% positive ranking.

Americans’ view of the real estate industry worsened from 2003 to the -40% plummet of 2008. Gallup offers some insight into the reason for decline:

Prices Dropped

“In late 2006, real estate prices in the U.S. began falling rapidly, and continued to drop. Many homeowners saw their home values plummet, likely contributing to real estate’s image taking a hard hit.”

Housing Bubble

“The large drops in the positive images of banking and real estate in 2008 and 2009 reflect both industries’ close ties to the recession, which was precipitated in large part because of the mortgage-related housing bubble.”

Bottom Line

“Although the image of real estate remains below the average of 24 industries Gallup has tracked, the sharp recovery from previous extreme low points suggests it is heading in the right direction.”

Authored by Tim Storm, a California Mortgage Loan Officer MLO 223456 – Please contact my office at the Emery Financial. Direct line at 949-640-3102. www.OrangeCountyVALoans.com

Filed Under: VA Purchase Loans