VA Loan

Congress passed the Servicemen’s Readjustment Act in 1944 to provide a number of benefits to veterans or their surviving spouses. One of those benefits was the VA Loan program which was created to help American veterans with the purchase of a home. A VA Loan is a mortgage loan that is partially guaranteed by the U.S. Department of Veterans Affairs (VA). This guarantee gives Veterans access to very favorable loan conditions such as 100% financing. California is home to over 1.8 million veterans. CA Mortgage Pro is committed to serving all of our veterans in Lafayette and the surrounding San Francisco bay area.

Since the VA loan program was created, the Department of Veterans Affairs has guaranteed over 20 million loans. The majority of veterans, military, and spouses of deceased military members are eligible to apply for a VA loan. There are certain credit and income requirements will need to be met in order to qualify for the program. Borrowers will also need to acquire a Certificate of Eligibility (COE) before they can apply for a VA Loan. Veterans will find that the VA loan program offers a number of benefits.

Some of the many benefits to the VA loan include:

  • No private mortgage insurance (PMI) premium, loan is guaranteed by the government.
  • No prepayment penalty.
  • Closing costs are regulated by the VA, meaning what the veteran can pay for is limited.
  • VA funding fees (up to 3.3%) which can be financed or paid for by “rolling into” the loan, or offset with a slightly higher rate.
  • Allowable loan limits follow the same Fannie Mae and Freddie Mac guidelines, up to $679,650 in most counties in the bay area.
  • VA Jumbo loans are allowed all the way up to $1,500,000 in some cases.

Some types of VA loans include:

  • Cash Out Refinance Loans – This refinancing options is available for various needs such as home improvements, or debt consolodation.
  • Purchase Loans – Available to purchase a primary residence at a much reduced government subsidised interest rate.
  • Interest Rate Reduction Refinance Loan (IRRRL) – Also referred to as a Streamline Refinance Loans, IRRRLs allow veterans to refinance existing VA loans at a lower rate. Document is limited, and appraisal is not required.  VA Funding fees are reduced or waived in many cases as well.

At CA Mortgage Pro, we have been helping veterans obtain financing through the VA loan program for over 22 years.  Since it is such a great program for those that qualify, one of the first things we ask prospective clients is, “are you a veteran?”.  Whether you are looking to finance your first home, or are looking to refinance an existing VA loan for a more favorable rate, our experienced and dedicated staff can help.  For more information on the VA loan program and to see how we can help you, contact us today.