VA Loans

Veterans Administration (VA) loans are popular loans for homebuyers in Coronado, CA and greater San Diego. VA loans guarantee lenders against loss if a property is foreclosed due to default. These assumable loans are available to eligible veterans and may be used to buy, refinance, construct or repair a house. If the VA property appraisal is less than the sale price, the borrower pays the difference as a down payment. VA loans are guaranteed by U.S. Dept. of Veterans Affairs.

VA Loan Benefits

The guaranty allows veterans and service persons to obtain home loans with favorable loan terms, usually without a down payment. In addition, it is easier to qualify for a VA loan than a conventional loan. Lenders generally limit the maximum VA loan to $203,000. The U.S. Department of Veterans Affairs does not make loans, it guarantees loans made by lenders. VA determines your eligibility and, if you are qualified, VA will issue you a certificate of eligibility to be used in applying for a VA loan.

Interested in applying for a VA loan? Apply now at Home Services Lending.

Top 9 Reasons to Use a VA Loan for your Next Home Purchase

1. Purchase with $0 Down. The VA loan is one of the only loan programs that allows the borrower to finance 100% of the home’s value and purchase with $0 down. Compare this to 10-20% down for most conventional loans!
2. Lower Rates. Because the loan is backed by the government, banks do not require PMI (private mortgage insurance) which is an added monthly expense.
3. Lower Monthly Payment. In addition, interest rates for VA loans are significantly lower than conventional loans.
4. No Closing Costs. On a non-VA loan, you pay miscellaneous up-front fees, such as for processing or underwriting the loan. These fees can run around 3% of the loan amount—thousands of dollars. But on a VA loan, the seller frequently pays these fees for you.
5. Getting qualified is easier. Because the loan is backed by the government, banks have relaxed the strict lending rules for VA loan applicants.
6. No Prepay Penalty. For most non-VA loans (especially if you have less than stellar credit), if you pay the loan off early, which often happens if you refinance or sell the home, you pay a fee. Not with VA loans. You won’t pay that fee.
7. Assumable Mortgage. With a VA loan, you can transfer your mortgage to someone else. They would assume your mortgage. This can help sell your home, especially if the interest rate on your mortgage is less than the current interest rate.
8. Additional Benefits for Disabled Veterans. If you are 10% disabled or more, the VA waives the funding fee. Also, if you have a permanent and 100% service connected disability, you may be eligible for a $50,000 grant for adapting a home to accommodate your disability.
9. There is a great selection of VA Approved Homes for Purchase! Home inventory around San Diego County is extremely high, giving you more choices and options.

Department of Veterans Affairs home loans — VA loans for short — are a popular option with home buyers. In the past fiscal year alone, the government has guaranteed 489,418 VA loans totaling more than $63 billion. Loans are open to active and former members of the armed forces who meet specific criteria for length and time of service, as well as discharge conditions. Reservists and National Guard members could be eligible if they served at least six years and received an honorable discharge. Veterans discharged for a service-related disability are potentially eligible, as are some members of the Public Health Service and foreign veterans who served with the Allied forces during World War II, according to the VA’s field operations office.

Do you qualify? Contact us to get more info on qualifying for a VA loan.