VA Mortgage California
The California VA Home Loan program is a popular option for citizens who have served. They are guaranteed a mortgage through the Department of Veterans Affairs program, which is backed by the federal government. California VA mortgages help eligible veterans meet their housing needs and have some of the best benefits of any mortgage program.
The majority of down payment grant programs in California will provide an additional 1% of assistance to qualified active members of the U.S. military and Veterans of the U.S. military.
California VA Home Loan Closing Cost Assistance
California VA Loans are almost always offered with 100% financing. This doesn’t necessarily mean buyers wont bring any cash to close. There are closing costs associated with the loan, as well as prepaid items such as interest, taxes and insurance. But California VA down payment assistance programs offer enough grant money to cover the majority of these costs so buyers can purchase with as little out of pocket as possible.
VA Mortgage California Highlights Include:
- No down payment requirement (100% financing).
- No upfront or monthly mortgage insurance premiums.
- Seller can pay closing costs up to 4% of the sales price. It is possible to buy a house with ZERO out-of-pocket costs.
- No prepayment penalties.
- Must pay one-time non-refundable funding fee at closing (waived for disabled veterans and some surviving spouses) but it can be financed.
VA Home Plus Loan Program
California VA loans reward those who have served by offer 100% financing. The grant money from the Home Plus program is instead used to cover closing costs. As such, there is no down payment required. They are a great way to buy a home in California with no money out of pocket. Home Plus VA Loan Programs are offered anywhere in California other than Maricopa and Pima Counties.
Program Highlights:
- Down payment assistance offered up to 2%.
- Minimum FICO score is 640.
- Maximum debt-to-income of 45%
Eligibility for a VA Mortgage
VA eligibility is based on continuous active service of servicemembers and veterans, and may be available to spouses of veterans who have died on active duty or MIA/POW. More VA eligibility details can be found here.
VA entitlement is documented in a buyer’s Certificate of Eligibility (COE). This guarantee is limited to 25% lesser of purchase price or established reasonable value. Veterans may generally purchase a home up to 4 times entitlement with no down payment. Annual loan limits are set by county, and most counties are set at $510,400. Remember, some down payment assistance programs in California limit the loan amount even if VA will finance more.
Waiting Periods – VA Mortgage California
Below are the standard VA waiting periods for the major derogatory credit events.
- California VA home loan after bankruptcy: The waiting period for getting a VA loan after a chapter 7 bankruptcy is 2 years. You can potentially qualify for a VA loan upon discharge of a chapter 13 bankruptcy or after 12 satisfactory payments during the plan.
- California VA home loan after foreclosure: The waiting period for getting a VA loan after a foreclosure is 2 years after the foreclosure.
- California VA home loan after short sale: If approved, there is no waiting period for getting a VA loan after a short sale.
FHA | USDA | CONVENTIONAL
