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

Orange County Home Buyers Eligible for VA Financing Have Big Advantage Purchasing Condo’s

January 12, 2010 by Tim Storm

In 2010, VA loan eligible home buyers have a big advantage buying Orange County condo’s if the project is on the VA approved list. They have an advantage over other buyers because of the recent changes for FHA and Conventional Fannie Mae guidelines as they relate to Condominium Approved projects.

FHA Recently Changed their Condo Project Approval Guidelines

The recent FHA changes to their condo project approval guidelines will have an immediate affect on Orange County buyers who are looking to purchase a condo. FHA had a list of approved projects, but recently made significant changes to the list, essentially wiping the list out. Now, projects that were previously approved will need to be “recertified”, which, at least for now, will take some time since nearly 100% of the projects on the list will need to be recertified. The certification process will take time, and is not a sure thing. At the same time, Fannie Mae has also tightened their condo lending guidelines. Conventional Fannie Mae financing is already difficult to get unless the buyer has at least a 20% down payment. On a condo, 25% down is preferred. With only 20% down on a Fannie Mae loan, a condo buyer would need excellent credit and would have an interest rate increase for having such a “small” down payment.

VA Has Not Changed their Condo Lending Guidelines and Still Has a Condo Approval List that is Valid

This is where the qualified VA buyer steps in. If the condo project is on the VA Condo Approval List, no “extra” approval is necessary, and no “recertification” is required. Up until recently, VA accepted FHA approved projects for financing. On November 30, 2009, the VA released Circular 26-09-19 which states that they will no longer accept HUD (FHA) Approved projects, but if the projects have already made it on the VA list under the old FHA/HUD condo approval guidelines, then the project will remain on the VA list. This is key.

The first thing an Orange County VA home buyer should do is get PreQualfiied and then PreApproved for a VA loan. An Orange County Direct VA Lender can help them get their Certificate of Eligibility, but the buyer will also need to provide paystubs for the most recent 30 days, tax returns and W2’s for the most recent 2 years, and bank statements for the most recent 2 months. With the $8,000 First Time Home Buyer Tax Credit rapidly coming to an end, now is the time to act.

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: first time buyer, Orange County, santa ana, Tustin, va condo list, VA Loan, VA Mortgage

Orange County VA Home Loan Limits for 2010

December 22, 2009 by Tim Storm

The Veterans Administration recently announced the VA 100% financing loan limits for Orange County, and the limit was reduced. In 2009 an Orange County VA eligible home buyer could purchase a home with $0 down up to a price of $737,500. In 2010 the limit has been reduced to $593,750.

The reduction on the loan limit should not have much of an effect for most Orange County VA home buyers. Since they are still eligible to purchase a home of almost $600,000 with no down payment, the decrease will barely be felt by 99% of buyers.

Orange County VA Home Buyers Can Still Get Loan Over $593,750 * 2011 increased to $700,000

Although the limit has been reduced, Orange County VA home buyers will still be able to buy homes valued at greater than $593,750 with a VA loan. The high-balance VA Jumbo mortgage program started in 2008. VA eligible home buyers just need to come up with a down payment equal to 25% of the difference between the 100% financing limit and the purhase price of their home.

Example VA eligible Purchase for Placentia, CA

For example, if Mike Smith is looking to purchase a home in Placentia for $693,750 (for this example, $100K over the 100% financing limit), then Mike would need to have a down payment of $25,000. That is not bad. That works out to a 3.6% down payment, plus there is no Monthly Mortgage Insurance.

Example of VA Purchase in Tustin, CA

Just for another example, let’s assume that Jill Monroe, a VA eligible home buyer, is looking to purchase a home in Tustin, CA for $650,000. That is $56,250 over the 100% financing limit. 25% of $56,250 is $14,062. Jill would need to come up with $14,062 for the down payment, only a 2.1% down payment.

Southern California VA Loan Limits for 100% Financing

County Name	Single Family Home ($0 DOWN AND UP TO)

LOS ANGELES	$593,750

ORANGE	$593,750

RIVERSIDE	$417,000

SAN BERNARDINO	$417,000

SAN DIEGO	$437,500

SANTA BARBARA	$417,000

VENTURA	$486,250

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, Orange County, tim Storm, Tustin, VA Loan, VA Mortgage

VA Loan Cashout Refi for Orange County Borrowers

December 13, 2009 by Tim Storm 11 Comments

Orange County homeowners with a VA loan are finding there are big advantages to the VA Cashout refinance program. This program actually does not require the loan being refinanced to be a VA loan, as long as the borrower is eligible for a VA loan. The biggest advantage of this program over most other cashout refinance programs is that the borrower can borrow money up to 90% of the properties value, while a Conventional loan allows cashout up to 80% loan to value, and FHA allows cashout up to 85% loan to value.

What is the Difference between a VA IRRRL and a VA Cashout Refi for Orange County Borrowers?

Orange County borrowers need to keep in mind a few of the differences between the popular IRRRL, or VA Interest Rate Reduction Refinance Loan, and a VA Cashout refinance. The IRRRL program is strictly a “Rate and Term” refinance, and the current loan needs to be a VA loan. Also, income is not verified, and in most situations, there is no appraisal. (Although there have been some changes to the appraisal requirements and some lenders are tightening up this program.) The VA considers any refinance that is not an IRRRL to be a cashout refinance. This means that if an Orange County VA eligible borrower wishes to refinance from a Conventional (Fannie Mae or Freddie Mac) loan, then even if they will not pull cash out, VA still considers it a cashout refinance and it must be underwritten as such.

VA Loans Are Flexible with FICO Scoring

Another big advantage for a VA cashout refinance versus a Conventional cashout refinance is the relative flexibility towards FICO scoring. For VA eligible borrowers with FICO scores under 700, if may make more sense to go with a VA loan even you only plan to pull cash out to 80% loan to value. Fannie Mae and Freddie Mac have instituted pricing “addons” which increase the fees and rate for cashout refinances when the FICO scores drop below 740. If your score FICO drops below 700, the pricing hits really start to add up. With VA, the pricing hits for low FICO’s are minimal.

VA Guidelines Regarding a Cashout Refinance

The actual VA guidelines allow for cashout to 100% loan to value, but finding a lender who will allow this will be difficult. Lenders tend to stay with the 90% rule, although there is some flexibility if the borrower is not actually getting cashout and the loan to value is over 90%. This is something that should be reviewed by an experienced Orange County VA loan officer prior to paying for an appraisal.

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 Cash out Refinance, VA Refinance Loans Tagged With: Orange County, santa ana, tim Storm, Tustin, VA Cash out Refinance, VA Loans, VA Mortgage, va refinance

Orange County VA Loans | First Time Buyer Tax Credit Extended for Armed Forces

November 11, 2009 by Tim Storm

Orange County, CA First Time Buyers using VA financing will be pleased to know that the First Time Home Buyer Tax Credit has been extended. For most home buyers, the tax credit has been extended through June 30, 2010, as long as the purchase contract has been signed by April 30, 2010. But for members of the Armed Forces who meet certain criteria, the extension goes out an extra 12 months.

Expanded Rules for Members of the Armed Forces to Benefit Orange County Buyers

For those members of the “Uniformed” services, or members of Foreign Service of the United States, or employees of the Intelligence Community, the following exception will allow for the extended deadline dates. Extended Duty is defined as “Official Orders outside the United States for at least 90 days during the period from 12-21-2009 to May 1, 2009.

First Time Buyer Tax Credit Deadlines for Extended Duty Borrowers

The tax credit dates are extended to include the following:

Contract must be signed by April 30, 2009
The transaction must be closed by June 30, 2009

This extension will help a lot of people. The tax credit was set to expire on November 3o, 2009. Now, with the expanded and extended rules, Orange County first time buyers will have plenty of time to find a home and close escrow. The Tax Credit is good for up to $8,000 or 10% of the sales price, whichever is less. Since there aren’t many homes in Orange County priced less than $80,000, most Orange County home buyers will get the full $8,000.

Income Limits Are Increased

The new rules have increased the income limits to $125,000 for Single tax filers and $225,000 for Married tax filers. This is quite a bit higher than the previous limits, and will help those buyers looking in the higher price ranges. The purchase price must be less than $800,000.

Orange County Buyers Should Get PreApproved

Orange County First Time Home Buyers should get PreApproved for a VA loan prior to shopping for a home. It is important to know what you will qualify for before getting too far into the home buying process. Also, sellers will not even accept an offer from a buyer unless the buyer has been PreApproved by a lender. PreApproval is a quick and easy process. The first step is to contact an Orange County Direct VA lender.

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, first time buyer tax credit, Orange County, tim Storm, Tustin, VA Loan, VA Mortgage

Orange County, CA First Time Buyer Uses VA Loan for $0 Down Purchase

October 23, 2009 by Tim Storm

VA is one of the only programs currently available that offers 100% financing for Orange County home buyers. Last month, Michelle Tucker, a single VA eligible homebuyer, took advantage of her VA eligibility and purchased her first home in Santa Ana, CA for $375,000. She had no down payment, and the seller paid all of her closing costs.

What is a VA No No?

Michelle bought her home using what is commonly referred to as a VA No No. The “No No” stands for “No Down payment” and “No closing costs”. The seller paid all recurring and non-recurring closing costs for Michelle. Michelle did pay for the appraisal, which was $425 and needed to be paid at the beginning of the process. But other than that, she was able to purchase her home without depleting her reserves.

Michelle began the homebuying process back in May, 2009. After renting for the over 10 years and feeling like property values would never be affordable in Orange County, the real estate downturn hit. Homes that were once valued at close to $600,000 were suddenly worth less than $400,000. Also, creating the perfect storm, interest rates have been very low for most of 2009, and the First Time Buyer tax credit of $8,000 even made it better. First thing Michelle did was contact an experienced, Orange County Direct VA Lender. Her Orange County VA loan officer was able to explain how the program works and prepare several VA loan scenarios based on her qualifications. He even helped to retrieve her Certificate of Eligibility.

PreApproval for VA Loan

As part of the VA PreApproval process, she provided 2 years tax returns and W2’s, paystubs for the most recent month, 2 months bank statements, and copies of her drivers license and social security card. She also provided her DD214. A loan application was completed and credit report run. With FICO scores ranging from 661 to 679, she was good to go. PreApproval only took a few days to complete, and with no costs. Once PreApproved she was introduced to a Orange County Realtor who was familiar with VA financing and also very familiar with the Santa Ana, Tustin, and Orange market areas Michelle was most interested in.

Finding a Home in Orange County is Not Easy

Michelle quickly found that with the drop in home prices also came a flood of renters looking to buy their first home. Also competing for the properties she was looking at were “all cash” investors. While frustrating, she persevered. In June she made offers on 6 homes. In July she made offers on another 8 homes with still no results. Finally, after taking a few weeks off from the home search, she got an accepted offer in August. $375,000 purchase price with the seller paying all of her closing costs, including her “prepaid” expenses such as interest, insurance, and taxes. Escrow was set for a 45 days close. On September 28, 2009, the loan funded and the Deed was recorded. The property was hers.

While purchasing a home can be a frustrating experience at times, working with experienced real estate professionals can help to make it as smooth as possible.

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, santa ana, Tustin, VA Loans, VA Mortgage