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California VA Home Mortgage Loan : California Veteran Home Loan
Are you an American Veteran looking to purchase your dream home in California? You have come to the right place. We can help you secure best terms on your California veteran home loan. California VA home loan programs are a special form of mortgage assistance provided to veterans to purchase home safely and securely. Read on to find how to secure best VA mortgage loan in California from a reliable lender.
California Veteran Home Loan
The U.S Department of Veterans Affairs (VA) guarantees California VA Home Mortgage loan issued to eligible veterans by the private lenders like banks, savings and loans and mortgage companies. The goal of issuing California VA home loan guaranty is to persuade lenders to offer more favorable terms to veterans. The amount of guaranty will depend on the loan amount and whether the veteran used any entitlement previously. California VA home loan guaranty helps and protects the California mortgage lender against loss if the borrower fails to make the payments. This in turn prompts lenders to provider flexible terms and lower interest rates on such loans.
California VA Home Mortgage Loan Helps a Veteran to:
- Buy, build, alter, repair or improve a home or condominium
- Buy a mobile home with or without the land
- Refinance an existing mortgage on a home owned and occupied by the veteran
Benefits of Purchasing California VA Loan
- No down payment is necessary most of the time.
- The interest rates can be negotiated with the lender.
- The veteran need not pay mortgage insurance premium on the California veteran home loan.
- Loan closing costs can be limited.
- The veteran can prepay the loan without penalty.
- The California veteran home loan is an assumable mortgage, subject to the VA's approval of the assumer's credit.
- The VA offers financial counseling for veterans so that they do not lose their homes during a financial crisis.
Steps to obtain a California VA Mortgage
- The VA has certain eligibility criteria for VA loan. The veteran must first apply for a certificate of eligibility.
- Once the veteran has decided on a home and signed the purchase agreement, an appraisal from the VA can be ordered.
- Choose a California mortgage lender who can either automatically process the loan without waiting for the VA's review of the credit application, or with any other institutional lender.
- California VA home loan amounts may not exceed $240,000 due to secondary market requirements. This again depends on the borrower's income level and the appraised value of the property.
- Close the loan and move in!
Costs associated with a California Veteran Loan Funding fee:
A basic funding fee has to be paid to the VA. It may be paid in cash or may be included in the California VA loan.
Other closing costs include:
- Credit report charges
- Loan origination fee: about 1 percent of the loan
- Discount points
- VA appraisal charges
- Title search and title insurance
- Recording fees
- State and/or local transfer taxes
- Survey charges
The above costs for acquiring California VA home mortgage loan may vary by area. Brokerage fees or commission must not be charged to a veteran buyer.
The VA acquires properties because of foreclosures on VA guaranteed loans. To buy a California VA acquired property contact a local real estate broker to see the property. The real estate broker may have a list of homes acquired by California VA foreclosure.
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