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

CalVet Loan or VA Loan | Which is Better for Orange County Veterans

September 26, 2011 by Tim Storm Leave a Comment

The CalVet loan program or the standard VA loan; which is better? It all depends on when the question is being asked and where you plan to buy a home. There are several distinct advantages the standard VA loan program has as of right now, September 2011, over the CalVet loan program. The biggest factor pushing most Veterans and active duty military personnel into the standard VA loan program is interest rate. But there are differences in loan limits which can sometimes favor the CalVet program depending on the California county the Veteran is purchasing in.

Low Interest Rates Favor the VA Loan Program

2011 has been a banner year for low interest rates. In September 2011, interest rates even hit all time lows. VA 30 year fixed rates are averaging 3.75% (3.98% APR)APR to 4.25% (4.48% APR) this year. VA interest rates have been consistently low for the last several years. CalVet loan program interest rates range from 5.5% (5.9% APR) to 5.95% (6.36% APR), which is a full 1.75% spread over the standard VA loan progam interest rates. To show what that interest rate spread does to the payment, lets compare a $300,000 loan. At 4%, the payment is $1,432. At 5.5%, the payment is $1,703. That is a $271 monthly payment difference, in favor of the standard VA loan program.

VA Loan Limit in Orange County is $700,000 | CalVet is $521,250

The VA loan limit for 2011 in Orange County, CA is $700,000, meaning a Veteran can purchase a home with Zero Down in Orange County (and Los Angeles) up to a $700,000 purchase price. A Veteran can even go with a higher priced home by bringing in a small down payment. The CalVet loan program caps out at $521,250. So for Orange County homebuyers looking at properties above a $521,250 price, who are undeterred by the higher interest rate a CalVet loan has, would still go VA because of the high loan amounts allowed.

VA vs CalVet | Homeowners Insurance

One advantage CalVet does over VA is a comprehensive homeowners insurance policy, which includes guaranteed replacement for your home, even in natural disaster situations like an earthquake or flood. Private insurance companies will charge extra for this type of coverage, and “guaranteed replacement” in California is very difficult to come by.

CalVet Does not offer a Refinance Program

CalVet requires that you apply for the loan before taking title to the property. Translated, this means it is only for a purchase, not a refinance. In contrast, VA offers the IRRRL program, or Interest Rate Reduction Refinance Loan. With this program you can lower your rate (if rates drop) without needing a full appraisal and without needing to qualify. It is a very “streamlined” process. However, it is only for current VA loan borrowers. For those Veterans who wish to refinance into a VA loan from a Conventional or FHA loan, they would need an appraisal and full income documentation. But the good news is they could refinance up to 100% of the properties value.

CalVet offers home Improvement loans up to $150,000 at competitive rates, which is a nice feature. VA does not currently have a home improvement loan program. However, another option is to use the FHA 203K Rehab loan program, which can later be refinanced into a VA loan.

VA Loan Versus CalVet Loan | Which is Better?

It depends. For most Orange County Veterans, the standard VA loan program is the way to go. Lower interest rates and higher loan amounts are two benefits that are hard to ignore. But it is important to keep abreast of changes. Who knows. VA could lower the 100% financing limit in 2012. Or interest rates, which change daily, could go up for the VA program. It is important to consult with an Orange County, CA VA loan expert who can prepare custom loan scenarios based on a Veteran’s qualifications. The VA loan expert can then help the Veteran get a VA Loan PreApproval.

Authored by Tim Storm, an Orange County, CA FHA and VA Loan Officer – Please contact my office at Emery Financial for more information about an Orange County, CA home loan. Direct: 949-829-1846 MLO 223456

www.OCFHALoans.com

Call our office today and see how we can help you and your family.

tstorm (at) ochomebuyerloans.com

Filed Under: VA Purchase Loans Tagged With: california va loan, calvet, orange county va loan, VA Loan, va loan program

2011 VA Loan Limits for Orange County, CA Good Through December

September 7, 2011 by Tim Storm 1 Comment

The 100% VA financing loan limit in Orange County, CA for 2011 is $700,000. The limit is typically changed, either up or down, at the end of September of each year. And while Fannie Mae, Freddie Mac, and FHA loan limits in Orange County will all be dropping from $729,750 down to $625,500, the Department of Veteran Affairs announced the VA loan limits will be extended through the end of 2011.

How Does This Effect the Maximum VA Loan Limit?

It is important to note that there is not a “maximum” VA loan limit. There IS a maximum “guaranty” provided by VA for loans meeting VA guidelines. In Orange County, a Veteran can still purchase a $700,000 home with no down payment. If the Veteran or Active Military wants to purchase a home for more than the 100% limit ($700,000), then a down payment is required. The down payment is equal to 25% of the difference between the $700,000 VA 100% financing limit and the higher purchase price. For example, if the purchase price will be $800,000, then the down payment required would be $25,000, or 25% of the difference between $700,000 and $800,000.

While there is not a maximum “loan limit”, most lenders will not lend above $1,500,000. Still, the VA program has provided a great way for Veterans to refinance their Convention loan to a low 30 year fixed rate, even when they have lost equity in their home. A “Jumbo” 30 year fixed rate is typically .75% to 1% higher than the going VA 30 year fixed rate.

Will the 100% Financing Limit in Orange County go Up, or Down, in 2012?

The Veteran’s Benefits Improvement ACT of 2008 provided a temporary increase in 100% VA financing limits for loans closed from January 1, 2009 through December 31, 2011. In 2008 the limit was only $417,000. In 2009 the limit increased dramatically to $737,000 in Orange County. In 2010 the limit dropped to $593,750, and in 2011 went back up to $700,000. Right now it is tough to tell what will happen with the VA loan limit. It most likely won’t go up. Based on what is currently happening with the Fannie Mae/FHA loan limits, the better guess is loan limits will drop. But how far? We should have a better idea within the next few months.

Veterans Purchasing Luxury Homes in Orange County Should Act Now

Because of the uncertainty regarding the Orange County 100% financing VA loan limit, Veterans who are considering a purchase of a home greater than $417,000 should get serious about finding a home before the end of 2011. The first step in determining eligibility and qualifications is to contact an Orange County Direct VA lender. The lender should be able to quickly retrieve your Certificate of Eligibility, as well as provide customized loan scenarios which will give the Veteran the details of a transaction that are needed when planning for a large financial event.

Authored by Tim Storm, an Orange County, CA FHA and VA Loan Officer – Please contact my office at Home Point Financial for more information about an Orange County, CA home loan. 949-640-3102. MLO 223456

Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.

tstorm (at) ochomebuyerloans.com

Filed Under: VA Mortgage Tagged With: 2011, jumbo VA, Orange County, VA Loan, va loan limits, va refinance

VA Loan Requirements & Eligibility for Orange County Veterans

July 26, 2011 by Tim Storm

(Updated for 2018) A common question among Orange County Veterans is “what are the VA loan requirements” and “am I eligible“. Because for several years in Orange County, the VA loan limits were too low to help a Veteran purchase a home, the VA program was seldom used. But now, with the $0 down loan limit in 2018 at $679,750, the VA loan program has become very popular. With low 30 year fixed rates, no down payment requirements, and flexible qualifying, any active duty military or Veteran thinking of purchasing a home in Orange County should learn about the VA loan program and the benefits it provides.

Eligibility Requirements for VA Loan Program

Orange County Veterans with active duty service (who were not dishonorably discharged) during World War II and later periods are eligible for VA loan benefits. World War II (September 16, 1940, to July 25, 1947), Korean conflict (June 27, 1950, to January 31, 1955), and Vietnam era (August 5, 1964, to May 7, 1975) veterans must have at least 90 days of service.

Orange County Veterans and active duty military personnel who served during peacetime must have had more than 180 days of active service. Veterans of enlisted service starting after September 7, 1980, or officers with service beginning after October 16, 1981, must in most cases have served at least 2 years.

The VA does not require that you have a certain credit score in order for approval. Mortgage lenders, however, are allowed to set their own standards for VA loan requirements. Most Orange County direct VA lenders require a minimum FICO score of 620 for loan amounts under $453,100. For loan amounts over $453,100, known as “high balance VA loans”, the FICO may need to be higher.

Since early 2010, most VA lenders in Orange County, and throughout the country, have tightened their lending and credit score requirements, making home financing harder to come by for those with credit issues or other criteria that makes their loan riskier.

To learn more about this, our article Credit Score Requirements For Orange County, CA VA Mortgages is a great place to start.

There are three specific pieces of documentation a lender will need to determine your eligibility:

A DD214 for discharged veterans.

A statement of service for active military personnel.

A Certificate of Eligibility (COE) to determine you have VA entitlement. Most Orange County VA lenders can quickly retrieve your Certificate of Eligibility on your behalf.

Because each VA lender has different qualifying guidelines, the next step is to contact your local Orange County VA loan expert to find out if you meet their VA loan requirements such as minimum FICO/credit scores, debt-to-income (DTI) ratios, and find out what your California county’s maximum loan amount is.

Lastly, if you have either had a divorce, filed bankruptcy, or had a previous home go into foreclosure, you are not immediately disqualified from a VA loan, although there are some additional restrictions.

You can find more information regarding these topics in our articles titled Divorce And VA Loan Eligibility, Does A Bankruptcy Mean I Can’t Get A VA Loan? and Can I Get A VA Loan If I’ve Had A Recent Foreclosure?

Call our office today and see how we can help you and your family.

tstorm (at) ochomebuyerloans.com

Filed Under: VA Mortgage Tagged With: california, Orange County, preapproval, VA Loan, va loan eligibility, va loan requirements

Are There VA Jumbo Loans Available in Orange County, CA?

April 23, 2011 by Tim Storm

If you’re looking at buying the Orange County home of your dreams then a Jumbo VA mortgage loan may be the best option for your financing.

In most VA loan scenarios, the VA guarantees up to 25% of the total amount of the loan up to the VA loan limit in your county – which, in much of the US, is $453,100 in Orange County, CA the 100% financing limit is $679,650. (2018 loan limit) That is a high limit and will surely purchase a beautiful home, but what if you can afford more?

But what happens when the value of the loan exceeds the Orange County $679,650 loan limit for 100% Financing?

This is where the Orange County, CA VA jumbo loan becomes a great option.

As an example, let’s say that you would like to live in Newport Beach, where home prices are easily higher than $1,000,000. You find the perfect house for you and your family, and it’s selling for $1,079,650, which is $400,000 over the Orange County 100% VA financing limit. You decide that you would like to use your hard-earned veteran benefits to take out a VA mortgage!

The U.S. Department of Veterans Affairs mandates that on jumbo loans above the 100% financing county loan limit, the borrower put down 25% of the difference between the cost of the loan and the applicable county VA loan limit.

Continuing on with our VA jumbo loan example from above, 25% of $400,000, $100,000 would be required as a down payment.

Not bad at all! In this example you’re buying your $1,100,000 Newport Beach home for only $100,000 down in addition to the required closing costs. Better yet, you are getting a low 30 year fixed rate. Your rate will be at least 1% lower than a non-VA borrower would get for a $1,000,000 loan.

The real value of VA jumbo loans is apparent when you compare it to the standard down payment requirement of a conventional or in this case, a Portfolio Jumbo loan mortgage, which is typically 20% down minimum. And again, VA offers a low 30 year fixed rate. Try finding a low 30 year fixed rate on a Portfolio Jumbo loan program.

This means that for the example of a $1,079,650 Orange County house, a conventional loan down payment would be $215,930 (at the minimum) while a VA loan down payment would only be $100,000. That’s less than half of the down payment required for the conventional loan in this scenario!

Please keep in mind while house shopping that VA county loan limits vary widely throughout the country and will be higher in areas with especially high property values. Once again, the Orange County VA county loan limit is $679,650, but it’s smart to check with your local VA mortgage agent prior to looking at houses. Many parts of California max out at $453,100 in 2018.

For example, as of 2018 the VA county loan limit for Marin County is $679,650! San Francisco County also has a loan limit of $679,650.

To check the Southern California VA loan limits, click on the blue link. To check what the VA county loan limits are for each county in the United States, you can visit the U.S. Department of Veterans Affairs at their loan limit website. For counties that are not listed on the website, the official California VA loan limit is automatically set at $453,100 in 2018.

Why is there such as large difference in county loan limits throughout the nation? In short, because the various housing markets across the country vary greatly.

In San Francisco a small single-family house may sell for $1,000,000, while in other places you might be able to find a similar house for $100,000!

Wherever you are, if you are in need of a substantial home loan, a VA jumbo loan is certainly worth checking out.

Authored by Tim Storm, an Orange County, CA FHA and VA Loan Officer – Please contact my office at Home Point Financial for more information about an Orange County, CA home loan. 949-640-3102. MLO 223456

tstorm (at) ochomebuyerloans.com

*updated January 3, 2018

Filed Under: VA Mortgage, VA Purchase Loans Tagged With: jumbo mortgage, va jumbo loan, va jumbo mortgage, VA Loan

Orange County VA Mortgage Loans

March 14, 2011 by Tim Storm

In Orange County, CA a VA (Veterans Administration) guaranteed home loan is the preferred loan program for active, non-active, Reserve, National Guard, and retired military of the armed forces. There are several reasons, including the fact that no down payment is required up to a $700,000 purchase price, and no private monthly mortgage insurance required.

Veterans and active duty military in Orange County are able to use a VA mortgage loan for purchasing a home, building a home, or refinancing an existing mortgage. And the existing mortgage does not need to be a VA loan. Many current Orange County homeowners are finding that being able to refinance out of a Conventional loan and into a VA loan at 100% loan to value is a great thing. And remember, no mortgage insurance, which FHA and Conventional loans will have.

We will discuss what role the VA plays in a VA guaranteed mortgage, the benefits of a VA home loan for Orange County Veterans and Active Duty personnel, who is eligible for a VA loan, and the documentation you will need to present to your Orange County VA direct lender in order to apply.

Did you know that more than 27 million veterans and service personnel are eligible for VA financing, yet many in Orange County aren’t aware it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement? The lack of realizing the benefits of a VA loan seems especially true for current homeowners who do not realize how high the Orange County VA loan limits currently are in 2011.

VA Does Not Offer Loans Directly to Orange County Veterans and Does Not Guaranty You Will Qualify

The VA does not actually lend the money to you directly. They offer a guaranty to a lender, in this case a local Orange County direct VA lender, that if you should default on the loan, they will pay the Orange County VA lender a percentage of the loan balance.

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

Primary Benefits of a VA Mortgage for Orange County Veterans:

100% financing, up to a $700,000 purchase price in Orange and Los Angeles counties.
No monthly private mortgage insurance is required. (Conventional financing requires this at over 80% loan to value. FHA requires this on all loans.)
There is a limitation on Orange County home buyers’ closing costs – costs are regulated by VA. Some costs cannot be paid by the Veteran.
The loan is assumable, subject to VA approval of the assumer’s credit. This is an awesome feature.
30 year fixed loan. VA also offers a great 5 year program, but with interest rates so low its hard not to take advantage of a 30 year fixed.
Seller can pay up to 4% of the Orange County veterans closing costs and even pay down they buyer’s debt to help lower their debt-to-income ratio.
Interest rates are similar to FHA interest rates.
You don’t need perfect credit. Typically, most Orange County VA lenders wants a minimum middle FICO score of at least 620. You can buy a home only two years after a foreclosure.

Frequently Asked Questions from Orange County Veterans about VA loans:

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 I served in the military?

You should have your DD214. Your lender will need this, along with a completed Request for Certificate of Eligibility. Your Orange County VA lender can help.

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 for Orange County homeowners and buyers?

In many cases, yes. VA guaranteed loans often offer a lower interest rate than conventional mortgages, especially for higher balance mortgages between $417,000 and $700,000, the Orange County 100% financing limit. Also, they do not require monthly private mortgage insurance when borrowing more than 80% of a home’s value, and they can be easier to get approved for because of the flexibility with credit and the allowance for higher debt to income ratios.

Q: How long does it take to get approved for a VA loan in Orange County?

It varies depending on the current workload of your lender, but it is typically the same as for Conventional and FHA mortgages – 3 weeks to 45 days. Much depends on your ability to quickly deliver the items required for loan processing. But if you’ve already been PreApproved by a local Orange County Direct VA lender, then closing in 3 weeks is a possibility.

Of course the first step is always to talk with a Orange County VA loan expert who can provide customized loan scenarios based on your qualifications and goals.

Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.

tstorm (at) ochomebuyerloans.com

Filed Under: VA Mortgage Tagged With: Orange County, VA Loan, va loan guaranty, VA Mortgage