VA home loans are the very best available home loans anyone can get today. They are a tremendous benefit for active military and veterans. Below I list some of the factors that make VA home financing very unique and the best:
- Zero down 100% financing: There is no other loan type (other than rural property USDA loans) that allow a borrower to finance 100% of the purchase price with no down payment. This allows veterans and active military members to keep more cash in the bank as a cushion and as reserves.
- VA 30 year fixed interest rates are the lowest: VA interest rates are lower than conventional home loan rates. Even if a conventional borrower puts 20% down payment or more, they will not get an interest rate as low as VA loan offer.
- VA loans only require a one year wait after prior short sale: Yes this is correct. A veteran or active military member only has to wait one year after a prior short sale and they can apply for a VA home loan. Conventional home loans even with 20% down now require a four year wait after a prior short sale. FHA home loans require a three year wait.
- VA loans only require a two year wait after a prior foreclosure: Again this is a great VA benefit. Conventional home loans in comparison require a seven year wait after prior foreclosure. FHA home loans require a three year wait.
- VA home loans only require a two year wait after a prior Chapter 7 bankruptcy: In comparison conventional loans require a four year wait after a prior bankruptcy even with 20% down payment.
- VA loan do not have monthly mortgage insurance even with zero down: Conventional and FHA home loans have very high monthly mortgage insurance with low down payments.
- VA eligible borrowers can get partial eligibility even if they have had a prior short sale or foreclosure with a prior VA loan. Or if they own another property with a VA loan: Give us a call or email and we can check your current eligibility.
- Veterans that receive disability pay are exempt from the funding fee on VA home loans: This is a huge benefit. Even if a veteran has the minimum 10% disability they will still get the funding fee waived.
- VA allows for zero down payment on very large jumbo sized home loans: You can get a zero down VA loan for very large amounts in many counties in California. Here are some examples of California counties and the amounts you can go zero down up to. Alameda County, Contra Costa County: $1,050,000. Los Angeles County: $687,500, Napa County: $592,250, Orange County: $687,500, Placer County: $474,950, Sacramento County: $474,950, San Diego County: $546,250, Santa Clara: $827,500, Santa Cruz County: $681,250, Sonoma County: $520,950, Ventura County: $598,000. And with a very small down payment a VA borrower can go above these loan limits.
- VA home loans allow for a borrower to do a cash-out refinance to 100% of their property value: There is no other loan today that will allow this.
- VA lending offers an easy streamline refinance program to drop your payment to market rates if rates drop: This program requires no appraisal and no income documentation. Conventional financing does not offer anything similar to this.
- A VA borrower can be approved for a VA home loan without having perfect credit: In fact a borrower can apply for a VA home loan with a credit score in the 500’s and still get 100% financing.
So I hope this helps you understand the incredible niches of VA loans and why they are the best home loans available in the U.S. today. Don’t hesitate to call or email if you have any questions about VA home loans.