Veteran Affairs (VA) Loan California
If you are a veteran looking for financing in order to purchase a home, then you are likely eligible for a VA loan. VA loans are loans partially guaranteed by the U.S. Department of Veterans Affairs, which allows lenders like us to reward veterans with far more favorable loan terms. In most cases, eligible applicants will be able to receive a mortgage at a low interest rate without having to put forth a down payment. Over the duration of the loan, there are usually refinancing options available that also allow veterans to cash out some of their equity in the property in order to pay for other, more pressing expenses. If you are a veteran looking to purchase a home, please don’t hesitate to contact our team so that we can help put you on the fast track towards property ownership.
Why people get VA loans
VA loans are for individuals that have served in the military at some time or another and the BIG advantage to a VA loan versus that of a conventional is there is NO DOWN PAYMENT required. That is correct, 100% of the purchase price can be financed. In addition to the low down payment, another HUGE advantage is you don’t have to have great credit. In addition to that all VA loans are guaranteed by the Veterans Affairs.
No Down Payment – Qualified Veterans can buy a home without having to make a down payment. The no-down-payment benefit allows the Veteran to get into a home without having to spend years saving up to have enough money to put a 3.5% to 5% down payment on a home.
The VA does not make loans, it just guarantees them to private VA approved lender, of which Capstone is one of them. VA basically promises to repay a portion of the loan should the borrower default. This allows the lender a degree of confidence and allows them to finance a Veteran without the need for the down payment.
More relaxed credit parameters allow the Veteran the ability to get a home with limited or no down payment.
No private mortgage insurance
EVEN with no down payment, there is NO mortgage insurance. Typically on a conventional or FHA loan with less than 20% down, there is some type of insurance needed, but with VA loans, there is no mortgage insurance. The Veteran does pay an upfont payment which can be financed into the loan.
It’s not a one-time benefit
One of the most common misconceptions about this program is that it’s a one-time shot. That’s absolutely untrue. Once you earn this benefit, it’s yours for life. You also don’t necessarily need to repay your original loan in full in order to purchase again with a VA loan. What’s possible will depend in part on how much VA loan entitlement you have remaining.
VA loans are booming, now is the time to take advantage of a VA loan.