When Does A VA Home Loan Make Sense?

When does a VA home loan make sense? – If a Veteran falls into any one of these four categories, the VA is probably your best bet.

1. Any Zero Down Payment Buyer:

This applies to borrowers who have no or limited savings. Who have savings but wish to keep their money in the bank. Typically First Time Buyers or move up buyers. It’s the same interest rate regardless of the downpayment.

2. High End Buyers:

VA buyers who need a jumbo loan, possibly as high as 1.5 million. Clients who have less than 20% down for a jumbo loan and want a great interest rate with easier qualification guidelines.

3. Buyers with Marginal Credit:

VA guidelines allow lenders to go as low as a 620 credit score and still offer the same interest rate for all approved credit. Veterans can also purchase 2 years after a Foreclosure/Bankruptcy/Short Sale.

4. VA Buyers Collecting Disability:

If a Veteran is collecting disability then the VA waives the Funding Fee for Disabled Veterans. It’s important to ask a Veteran if he’s collecting disability because the injuries may not be physically obvious.

Effective September 1, 2007, Ginnie Mae eliminated the $417,000 restriction on VA loans. This increase for VA loans was great news for all veterans. Now they can take advantage of their VA benefits and obtain a jumbo loan that has a great interest rate. Adding to the benefit, it is still easier to qualify for a VA loan since the credit and income standards are not as strict compared to conventional loans.

This information is brought to you by Lorraine Santirosa a San Diego Realtor specializing in helping Veterans and active duty military buy and sell homes. For more information or help with buying a home in San Diego call 619-248-5484 or visit http://www.sandiegomilitaryrelocationexpert.com

It’s important to work with an agent that has experience working with VA buyers and sellers.
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Want to schedule a showing to see homes listed for sale in San Diego? Would you like to schedule a FREE no obligation consultation with a veteran and active duty real estate professional, call 619-248-5484 or visit http://www.sandiegomilitaryrelocationexpert.com

According to the California Department of Veterans Affairs, San Diego County is home to approximately 265,000 veterans as of 2007.

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