VA Loans in California
A VA loan is a mortgage backed by the Department of Veterans Affairs, created to help veterans, active duty service members, and eligible surviving spouses buy a home with zero down payment.
If you have served, this is usually the best loan available to you. No down payment, no monthly mortgage insurance, and competitive rates.
Who it's a good fit for
VA loans are for veterans, active duty service members, National Guard and Reserve members, and eligible surviving spouses. If you have served at least 90 days of active duty during wartime, 181 days during peacetime, or 6 years in the National Guard or Reserves, you likely qualify. This is also a great option if you do not have money saved for a down payment, since VA allows 100 percent financing.
Who it's not a fit for
VA loans are not available to non-veterans. They are also for primary residences only, so you cannot use a VA loan to buy an investment property or a vacation home. If you already have a VA loan and have not restored your entitlement, you may need to sell your current home or refinance before using your benefit again, though there are options for second-time use.
Requirements
Minimum Credit Score
580 (lender overlay, VA does not set a minimum)
Down Payment
0 percent. Zero down payment required
DTI Limit
Typically up to 41%, but can go higher with residual income and strong credit
Reserves
Not typically required, but reserves help with compensating factors
Pros and cons, stated honestly
Advantages
Things to consider
Costs involved
The biggest cost on a VA loan is the VA funding fee, which is a one-time charge of 2.15 to 3.3 percent of the loan amount depending on your down payment and whether you have used your VA benefit before. The good news is the funding fee can be financed into the loan, so you do not pay it out of pocket. If you receive VA disability compensation of 10 percent or higher, the funding fee is waived entirely. There is no monthly mortgage insurance on a VA loan, which saves you significantly compared to FHA or conventional with less than 20 percent down. Closing costs are limited by the VA, and the seller can pay them on your behalf.
The process and rough timeline
Get Your Certificate of Eligibility
1 to 5 daysI help you request your COE from the VA. This proves you are eligible for the VA loan benefit.
Get Pre-Approved
1 to 3 daysWe verify your income, credit, and COE. I issue a pre-approval letter that shows sellers you are ready.
Find a Home and Make an Offer
Varies by buyerYou shop with your agent. Your VA pre-approval is strong, but some sellers need education on why VA is good for them.
VA Appraisal and Underwriting
10 to 14 daysThe VA orders an appraisal to check the value and condition. We work through underwriting together.
Close and Get Your Keys
30 to 45 days totalYou sign, the loan funds, and you move into your new home with zero down.