VA (Veterans Affairs) Loans
VA loans are a great option for military members and veterans, allowing eligible borrowers to buy a home with no money down. Loan limits vary by county, such as LA & Orange – (2025) $1,209,750 & Riverside $806,500, and the program can be used multiple times. Disabled veterans may also qualify for additional benefits.
What is a VA Loan?
The VA loan, created in 1944, helps veterans and their spouses buy homes. Issued by approved lenders and GUARANTEED by the Department of Veterans Affairs, it offers no down payment and competitive interest rates.
The fact that these loan are backed by a government agency makes lenders feel more comfortable in offering them, as they pose less risk. As a result, its possible to get a VA Loans in California with ZERO ($0) down payment and with sometimes-looser credit requirements. Borrowers don’t have to pay Private Mortgage Insurance (PMI) since VA loans are backed by the government.
Requirements
The VA offers flexible qualifying standards and doesn’t rely on credit scores. Even with a low score, a good payment record over the past year can help you qualify, offering significant savings compared to conventional loans.
Veterans must provide a Certificate of Eligibility, available on the VA website, to prove their status and eligibility for a VA loan. While there’s no income threshold, borrowers need to show reliable income to cover expenses, including the mortgage. Private lenders may have additional requirements, and our loan officers are here to guide you through the process
How to Qualify for a VA loan:
- Obtain a VA Certificate of Eligibility (COE)
- DD-214 – Discharge papers.
- There is NO minimum credit score.
- Have at lease 90 consecutive days of active service during wartime or at least 181 consecutive days of active service during peacetime.
- Have more than (6) six years of service in the National Guard or Selective Service.
- FICO 600 or under are accepted with Mortgage Brokers/Officers.
- Borrowers should have income to make mortgage payments and they shouldn’t have huge debt load.
- Surviving spouse of a service who die on active duty or from service-connected disability & have not remarried after age of 57 or Dec. 16,2003.
- Spouses of prisoners of war or service war members missing in action are also eligible.
Benefits
1. The biggest advantage of a VA loan is the ability to borrow a large amount with ZERO ($0) no money down.
2. Since VA loans are government-backed, there’s no need for private mortgage insurance (PMI), saving borrowers money each month. With competitive rates and flexible qualification standards, VA loans are an excellent option for eligible borrowers.
3. Closing costs for VA loans limits the lenders origination fee to no more than 1% of the loan amount and prohibit lenders from charging some other closing cost.
4. Mortgage rates lower for VA home loans. There is no pre-payment penalty.
5. You don’t need to be a first time homebuyer in order to get a VA loan. As long as you pay it off each time, you can use the benefit again and again.
6. Bankruptcy and foreclosure won’t permanently affect your chances.
More questions? Call Fred 714-583-6188
If you are interested in finding out if a VA loan is right for you, please contact us or fill out our pre-approval form so one of our experienced loan officers can help you evaluate your loan options.