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

Orange County VA Home Loans After Foreclosure or Short Sale

July 8, 2010 by Tim Storm

Orange County Veterans who have had a short sale are able to purchase a home with $0 down immediately after the short sale. Veterans who have had a foreclosure need to wait two years. VA is relatively flexible in how they look at foreclosures and short sales, compared to FHA and Fannie Mae.

Short Sale versus Foreclosure

A short sale occurs when a home owner sells their home, even though they owe more than the home is worth. Their Orange County home loan lender needs to sign off on the home sale, since it is the bank who will be taking a loss on the property if it is sold. A short sale can help to preserve a home owners credit compared to going through a full fledged foreclosure. FHA typically requires 3 years after a foreclosure or short sale, unless extenuating circumstances can be proved as the reason for the short sale. Fannie Mae requires between 4 and 5 years after a foreclosure, but will lend to 80% of the properties value only two years after a short sale. But VA, at least for those that are eligible, will lend to 100% of the properties value up to the county VA loan limits. The VA Loan limits in Orange and Los Angeles counties, the $0 down loan limit is $679,650 in 2018.

Veterans Need Perfect Credit After Foreclosure or Short Sale

The only catch is that the Orange County veteran will need perfect credit since the short sale or foreclosure. Especially over the most recent 12 months. Many times, leading up to the short sale, the seller may have multiple mortgage lates, possibly 90 or 120 day lates. This can really weigh the credit report down and hurt the FICO score. This is why it is important to reestablish credit immediately after the short sale, or foreclosure, and n0t have any more lates after the sale of the home.

Quick Way to Find if you are Qualified for a VA Home Loan in Orange County, California

It is always important to get PreApproved for a VA loan prior to make an offer on a home. It is probably even more important to do after a short sale or foreclosure. Find a reputable VA loan expert in Orange County, CA, and have them prepare personalized VA loan scenarios which will give a breakdown of the purchase price, loan amount, closing costs, and amount needed to close. The VA loan officer can get the Automated Loan Approval, which is an important step in determining early on whether you can get a VA home loan to purchase a home. The key is to make sure to find someone with experience to get them job done easily and quickly,

Authored by Tim Storm, an Orange County, CA 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 Purchase Loans Tagged With: california, Orange County, short sale, va home loan, VA Loan

Orange County, CA VA Loan Borrowers May Still Be Eligible for Federal Tax Credit

May 16, 2010 by Tim Storm

Orange County, CA VA loan borrowers may still be eligible for the $8,000 First Time Buyer Tax Credit. For everyone else the First Time Buyer tax credit expired if they did not have an offer to purchase a home accepted by April 30, 2010. But military home buyers may still have time provided they meet certain qualifications.

Who Qualifies for the Military Extension of the Tax Credit? Must be a member of the “uniformed” services?

A member of the “uniformed” services, or
A member of the Foreign Service of the US, or
an employee of the intelligence agency
a spouse of any of the above

Are the additional qualifications if an Orange County VA Loan Borrower is interested in the Tax Credit?

Yes, they must have had:

Extended duty outside the US for 91 days, or
Extended duty outside the US for 91 days and had to relocate more than 50 miles from principal residence, and
All this happened between the dates of January 1, 2009 and April 30, 2010.

How Long is the Tax Credit Extended?

Orange County, CA VA loan borrowers have been given an extra 12 months to get an accepted offer on a home. They must have an accepted offer by April 30, 2011, and then they must close escrow by June 30, 2011.

There are a few more items to keep in mind with this extension. To clarify the qualifications, an Orange County VA loan borrower is eligible for the tax credit if they had extended duty, which could be inside or outside the US and is longer than 90 days, and had to move more than 50 miles from their primary residence.

$0 Down for Orange County VA Loan Borrowers

The VA Loan Limits vary from county to county. The VA loan program is really about the only program available for Orange County home buyersto purchase a home with $0 down. While the max price allowed for most of the United States for 100% financing on a VA loan is $417,000, Orange County is considered a “high cost” county because of the high prices of homes. Because of this, an Orange County VA loan borrower can purchase a home for $593,750 with $0 down payment. Los Angeles has the same limit, while San Diego cap’s out at $437,500. The Inland Empire max is $417,000.

The Time to Buy an Orange County Home is Now

In addition to the Federal First Time Buyer Tax Credit, there is also a $10,000 California First Time Buyer Tax Credit. So VA loan eligible borrowers could actually get $18,000 just for buying a home (and with $0 down). With home affordability at an all time high, now is a great time for Orange County VA loan eligible first time buyers to take the next step and get PreApproved for a VA loan.

Authored by Tim Storm, an Orange County, CA VA Loan Officer MLO 223456– Please contact my office at Emery Financial Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.

www.OCFHALoans.com

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

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

Filed Under: VA Purchase Loans Tagged With: Orange County, tax credit for va loan borrowers, VA Loan, va loan preapproval

Orange County VA Loans | Seller Concessions vs Closing Cost Credit

April 1, 2010 by Tim Storm

Orange County VA loan borrowers need to understand the difference between Seller Concessions and a Seller Credit for Closing Costs. Most loan programs will allow for the seller to pay some or of buyers closing costs, but VA goes a step further. VA allows for Seller Concessions.

What is a Seller Concession?

According to the VA, a Seller Concession is anything of value added to a transaction by the seller or builder for which the buyer pays nothing additional and which the seller is not customarily expected or required to pay or provide. Below are several examples of Seller Concessions.

Payment of the buyer’s VA Funding Fee – this can be large for Orange County VA home buyers
Prepayment of the buyer’s property taxes and insurance. These are items included in “prepaid” expenses.
Gifts such as a television set or microwave.
Payment of extra points to provide permanent buydown of the interest rate. For example, if it is customary to pay 1 Origination and 1 Discount for a 5% rate, but the seller pay 2 additional Discount points to buy the rate down to 4.5%, that would be a Seller Concession.
Provision of escrowed funds to provide temporary interest rate buydowns – like a 2-1 Buydown program.
Payoff of credit balances or judgements on behalf of the buyer.

Seller concessions do not include:

Payment of the buyer’s non-recurring closing costs
Payment of points which are typical for the market

Imagine that. If an Orange County Veteran wants to purchase a home but first needs to pay off credit card debt, he or she could negotiate to have the seller pay off the debt as part of the purchase.

There cannot be more than 4% in Seller Concessions. But remember, you will not need to include normal discount points or buyer’s closing costs as part of the 4% limit.

Talking With an Orange County VA Loan Expert is the First Step

The first step is always to talk with a local Orange County VA loan officer. Your VA loan officer should be able to answer most questions, prepare detailed loan scenarios, and walk you through the VA loan PreApproval process.

www.OCFHALoans.com

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

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

Filed Under: VA Purchase Loans Tagged With: california, irvine va lender, Orange County, seller concessions, tim Storm, va closing costs, VA Loan, VA Loans, VA Mortgage

VA Home Loans Remain Unchanged for Orange County Borrowers

February 10, 2010 by Tim Storm

While other loan programs continue to go though multiple guideline changes, the VA loan program has been mostly unchanged for Orange County VA home loan borrowers. FHA and Fannie Mae have recently tightened their guidelines. VA has not.

FHA and Fannie Mae Tighten Condo Financing Guidelines

FHA and Fannie Mae recently tightened their guidelines for financing on condominiums. FHA, which has an extensive approved condo list in Orange County, recently started requiring that projects on the list be “recertified”, a costly and time consuming process. Also, projects that were not previously on the list will need to go through a full review and approval process, which will take even more time and more cost. Plus, there is no guaranty that a project will be financeable. Even Fannie Mae is requiring a much more thorough look at condo projects. Each lender has their own approved condo list for Conventional loans, making lending on condo’s very tricky. VA is the only program that continues to have a valid project approval list. This is a big advantage for Orange County VA home home buyers interested in a condo. If they specifically look at VA approved condo projects, they will have an advantage over FHA and Fannie Mae home buyers. The key is to know how to find Orange County condo projects on the VA approved list.

Fannie Mae Lowers the Debt to Income Ratios

In December 2009 Fannie Mae decreased the debt to income ratios used to qualify borrowers. Although the “guideline” ratios rae still 28/36, it was possible to get a home buyer approved with a debt ratio of 60% in some cases. Now, Fannie Mae will not allow ratios over 45%, unless there are strong compensating factors. In ases with strong compensating factors, they will allow a ratio of 50%. This dramatically effected the amount borrowers can qualify for. VA guidelines remain unchanged, with some borrowers getting approval with debt ratios as high as 60%.

FHA Increases the Upfront Mortgage Insurance Premium

FHA increased the Upfront Mortgage Insurance Premium to 2.25%. The UFMIP is similar to the VA Funding Fee, which on a typical transaction is 2.15%. The great thing about VA loans is there is no a Monthly Mortgage Insurance, which FHA has. Fannie Mae also requires Mortggae Insurance if the down payment is less than 20% of the property value. There is talk that FHA may increase the Monthly Mortgage Insurance beyond the current .55%. (versus VA, which is 0%).

So while all of these changes have taken place, the VA loan program has held steady. Orange County mortgage rates on VA loans are also very low, as are interest rates for most programs. Compared to Fannie Mae, VA is actually very competitive. Fannie Mae has “pricing hits” that begin when the loan to value is over 60% and when the FICO is less than 740. The pricing hits can really add up if the FICO score drops under 660, or if the property is a condo over 75% loan to value. If the loan is a cash out refinance, be prepared to pay extra for a high rate. VA does not have pricing hits and will even allow a VA cash out refinance to 90% of the properties value. Imagine the following scenario: cash out to refinance on a condo for a borrower with a 660 FICO score at 80% loan to value. (Fannie Mae won’t even go over 80% on a cash out refi, and FHA won’t allow over 85%.)

The first step an Orange County VA eligible home buyer needs to take is to talk to an Orange County VA lender who can answer questions and prequalify you for a loan before you begin looking at homes.

Authored by Tim Storm, an Orange County, CA Loan Officer MLO 223456– Please contact my office at Emery Financial Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.

www.OCFHALoans.com

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

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

Filed Under: VA Purchase Loans Tagged With: california, first time buyer, Orange County, santa ana, tim Storm, Tustin, VA Loan, VA Mortgage

How to Buy a Home in Orange County with $0 Out Pocket with a VA Loan

February 7, 2010 by Tim Storm

It is possible to purchase a property in Orange County with no money out of pocket if your eligible for a VA loan. Commonly referred to as a VA NO NO, with a little negotiating, it can be done.

What is a VA NO NO?

VA refers to the Veterans Administration, which offers 100% financing for eligible veterans and active duty military personnel. The first “NO” refers to the fact that no down payment is required on a VA loan up to the loan limits for each region. In Orange County, the VA loan Limit for 100% financing is $593,750. The second “NO” refers to negotiating to have the seller pay all the Veterans closing costs. Closing costs, depending on the purchase price, can easily be between 2% and 3% of the purchase price. During the offer/counteroffer stage of a transaction, the buyer needs to negotiate to have the seller pay the estimated amount needed to close and the Veteran can end up purchasing a home with no money out of pocket.

$8,000 First Time Buyer Tax Credit

If an Orange County VA eligible First Time Home Buyer plays their cards right, they can purchase a home with no out of pocket funds and the government will pay you $8,000 to do it. To qualify for the Tax Credit, a property must be in contract by April 30, 2010, and then escrow closed by June 30, 2010. The tax credit is equal to 10% of the purchase price, or $8,000, which ever is less. In Orange County, home buyers would be hard pressed to find a property for less than $80,000, so 99% of Orange County First Time Home Buyers should get the full amount.

The first thing to do is check with an Orange County VA Expert Loan Officer who can put together multiple loan scenarios based on your goals and qualifications. Orange County VA loan PreApproval is very important, especially prior to making an offer.

www.OCFHALoans.com

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

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

Filed Under: VA Purchase Loans Tagged With: california, first time buyer tax credit, First Time home buyer, Orange County, santa ana, Tustin, VA Loan, VA Loans, VA Mortgage