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

The loan process for a VA loan is fairly similar to the process for an FHA Loan or Conventional Fannie Mae or Freddie Mac loan, especially now that we’re back in a “Full Documentation” world. There are a few nuances associated with getting a VA loan, but with a little know how, the loan process will be fairly easy.

VA is a great program because it is just about the only 100% financing program available. The Orange County, CA VA loan limits are very high. A VA eligible home buyer in Orange County can purchase a home for $737,500 with $0 down payment! FHA is the closest competing loan type. The maximum FHA loan in Orange County, CA is $729,750 and requires a 3.5% down payment. For those that are eligible, VA does have advantages over the FHA program.

Orange County, CA Veterans Need to Determine Eligibility

The first thing a Veteran needs to do is determine eligibility. If you have a DD214 (Discharge papers) then an Orange County VA Direct Lender can quickly (in minutes) get your Certificate of Eligibility. Once you have the Certificate of Eligibility, it is time to get PreApproved for a VA loan.

Orange County Veterans Need to Get PreApproved for a VA Loan Prior to House Shopping

Mortgage PreApproval should happen before the home search begins. If you begin the search before knowing what you qualify for, the search can become discouraging if it turns out you are looking in the wrong price range. By getting PreApproved first, you will know ahead of time what home price range you should be looking in. It quite often turns out that a new home buyers qualifies for a higher price or payment than they are comfortable with. Finding this out first is very important. During the PreApproval process the lender will prepare several loan scenarios based on your goals. A loan application is completed, credit is run, and an Automated Loan Approval (hopefully) is issued. The underwriter also will need to review the following items.

Paystubs for the most recent 30 days
2007 and 2008 (most recent 2 years) tax returns, all schedules.
2007 and 2008 (most recent 2 years) W2’s or 1099’s.
Bank statements for the most recent 2 months, all pages.
Also, include investment and retirement acconts covering the most recent 2 months.
Copies of drivers license and social security card.
Explanation letter for any derog’s and inquiries on the credit report.

Once the Veteran is PreApproved, it is time to find a home and make an offer. Working with a good Orange County Realtor is important. Not all Realtors are created equal, and not all actually work with buyers. Finding a Home Buyer Specialist is important.

Getting an Offer Accepted on an Orange County Home has not Been Easy in 2009!

Once an offer has been accepted, the race is on. Most escrows are between 30 and 60 days. Since the lender has already PreApproved the Veteran, it is just a matter of updating a few paystubs and bank statments. The appraisal is ordered by the lender, and verifications of employment are performed. Also, the lender will receive the escrow instructions and preliminary title report. Once the appraisal is prepared, which can take between 1 and 2 weeks, the loan is submitted to the underwriter for the Full Underwritten approval.

Provided there were no problems with the title report or appraisal, an Approval should be issued within a few days. Typically there will be a few Prior to Loan Document conditions. These conditions need to be cleared before loan documents are prepsared and forwarded to escrow. Once the Prior to Doc conditions are signed off, loan documents are prepared and emailed to the escrow company. This is typically done within 48 hours of the signoff. At this point the Veteran is called by the escrow company to set a time to sign the loan documents. (The Veteran should bring a well rested signing hand, because there will be many signautures.)

Once loan documents have been signed, they are returned to the lender for funding. The typical turnaround time from funding is anywhere from 1 to 3 days. It can sometimes take a little longer if there are any funding conditions that need to be met. Once the lender has funded the loan, the title company will handle getting the Deed of Trust recorded at the Orange County Recorders Office. This is usually done on the day of the funding, depending on how late in the day the funding occurred. The whole process, from the start of escrow to the closing, can be done in 30 days if everything moves smoothly.

The Orange County, CA VA Home Buyer is Ready to Move in!

Once recorded, the new Orange County, CA VA Home Buyer can get the keys and move in, unless the purchase contract allowed extra days for the seller to move out.

That is the way to process is supposed to go. There are always roadblocks along the way that need to be navigated. This is why it is important to make sure you are working with lenders and Realtors who have experience with the VA loan program.

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

Orange County home buyers, both First Time home buyers and move-up home buyers, are finding out quickly that the days of 100% financing are in the past. However, there is still a program available that will allow for 100% financing. The catch is you need to be a Veteran.

Orange County VA Loan Limit for 2009

Most areas of California have a loan limit of $417,000 for 100% financing. Veterans are allowed to go with a higher loan amount, but a down payment is required. However, Orange County is considered a “high cost” county. VA eligible home buyers can purchase a home for $737,500 with $0 down payment. The limit is the same in Los Angeles. In San Diego the 100% financing limit is $593,750, while in San Bernardino/Riverside the limit is $417,000.

What is the VA NO NO?

Commonly referred to as the VA NO NO, this refers to when the VA homebuyer negotiates to have the seller pay all of the closing costs, including originations fees, title, escrow, recording, insurance, taxes, and interest. The VA buyer can literally buy a home with ZERO money out of pocket.

First time buyers can even get paid to buy a home if they are able to take advantage of the $8,000 Federal Tax Credit for First Time home Buyers. Anyone who hasn’t owned a home during the last three years is considered a First Time Buyer. There are certain limitations, especially in regards to income limitations (or maximums). This program is scheduled to end November 30, 2009, so anyone who is planning to take advantage if the tax credit needs to act quickly.

Where Does an Orange County Veteran go for a VA Loan?

You just need to find an Orange County VA Lender. It helps if they have the ability to actually fund the loan rather than just originate the loan and “broker” to another company for funding. You will also want to find a loan officer who is an Expert in VA Financing and can explain the benefits, as well as give accurate estimates of the payment and closing costs associated with a VA loan.

Orange County Borrowers are Taking Advantage of the IRRRL?

One of the best things about a VA loan is the VA Streamline Refinance program, also know as the IRRRL, or Interest Rate Reduction Refinance Loan. This program allows current VA borrowers to lower their interest rate with very little hassle.