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VA Home Loans

Veterans receive the best loan terms on the market: no down payment, no MI, flexible qualification standards, and a low rate.

Created in 1944 under the Servicemen’s Readjustment Act (also known as the GI Bill of Rights), the VA loan helps make housing accessible for veterans and their families. The VA streamline refinance, meanwhile, allows VA loan holders to refinance and lower their mortgage rate with minimal hassle.

The VA mortgage offers an unparalleled affordable mortgage opportunity for servicemen, veterans, and their families. Benefits of the VA loan include low interest rates, low (or no) down payment, no mortgage insurance, and a minimal financing fee.

The terms of qualification are determined by the Certificate of Eligibility issued by the VA Department. For more information, give us a call at 805.543.LOAN.

The Basics:

  • Down payment: as low as 0%
  • Credit score: as low as 550
  • Debt-to-income ratio: as high as 60%
  • Gift payments: allowed; gifts, grants, and seller concessions
  • Rate and Term: fixed and adjustable rate options
  • Ceiling: no purchase maximum, but must be “modest in size, design, and cost”
  • Occupancy: primary residence only
  • Mortgage Insurance: yes, upfront funding fee; no monthly fees

*Note: Spouses of deceased veterans are eligible for VA financing in certain situations. Click here to learn more.*

The VA-backed streamline refinance product, called the Interest Rate Reduction Refinancing Loan (IRRRL), allows vets to drop their VA mortgage rate WITHOUT a new appraisal, WITHOUT asset documentation, and WITHOUT income requirements.

Eligibility is simple and to the point:

  • Current: must be current on your mortgage; no more than one 30-day late payment in the past year
  • Lower rate: refinance must reduce rate (ARM –> fixed always eligible)
  • No cash-out: only covers existing loan balance
  • Previously occupied: property must be previously occupied by mortgage holder
  • VA loan eligibility: VA loan allowance must have been used on property of intended refinance

Click here for more information.

Loan Requirements

  • Credit: Minimum 530 FICO & including No Score
  • Loan Term: Fixed Rate Mortgage (FRM): 10 – 30 year terms
  • Max LTV: 100% LTV plus VA funding fee
  • Occupancy: Owner Occupied Only
  • Property Eligibility:
    • New Construction: 1 Unit Residential Property, Condominiums, Manufactured (double-wide or larger), and Modular Homes.
    • Condominium: Project must be accepted/approved by VA.
    • Manufactured Homes (off-frame only): Must meet all MPR-related requirements for proposed or under construction as per VA guides. Manufactured homes can be new or used, however Manufactured homes to be moved to purchaser’s lot to be affixed to permanent foundation require additional inspections.
    • Loan may include simultaneous purchase of the land/lot or loan can be guaranteed for the construction of home on land/lot already owned by veteran. (Read More)
Written by Central Coast Lending - Go to Central Coast Lending's Website/Profile