VA Home Loans

Among the many pleasures we have at Gold Star Mortgage is helping Veterans! It is our way of thanking them for their incredible service and dedication. Perhaps our most prominent way we help our Veteran clients is through VA loans, plus we can also assist Veterans with other options, such as conventional loans!

VA loans can be used for either purchasing or refinancing a home, as they are government-secured and regulated by the Veterans Administration. Renovations, manufactured home procurements and energy-efficient installations can also be supported. This funding program is exclusive to Veterans, however, qualified spouses, widows and widowers may also obtain funding by meeting certain criteria. Other types of military personnel can also qualify for VA loans, whose qualifications are largely based on a Veteran’s duty status while serving in the military.

VA loans are popular for many reasons, including their reduced credit requirements. Borrowers can receive funding from a purchase loan that features an attractive interest rate, or a cash-out refinance that allows them to secure cash through the equity in their home. Furthermore, regarding refinancing, non-VA loans can be refinanced into VA loans.
VA loans consist of a guarantee of a property’s value of up to 100%. The Veteran’s Administration refrains from becoming directly involved, as it is private lenders who process VA loans. A portion of the loan is guaranteed as a representation of protection for the private lender in the event a borrower fails to repay the funding provided to them. In this scenario, the VA therefore provides the remaining financial losses sustained by the private lender.

Borrowers are able to easily entice lenders at the result of the prior-mentioned guaranty, as lenders present them with loans possessing more favorable terms and conditions. Among the accommodations lenders make for borrowers includes a 0% down-payment requirement, as long as the price of the property not exceed its appraisal value. Also, borrowers fail to encounter premiums for private mortgages.  

Another reason VA loans are great for borrowers stems from their capability to support closing costs, as well as overall limits on the total amount borrowers can be asked to pay. Lenders are restrained from penalizing borrowers who pay off their loan early, plus the loan can become assumable if the borrower who assumes the loan fits the required criteria. A person does not need to be a first-timer to use the VA loan program, as these loans may be re-used.

General qualification requirements are imposed by the VA regarding these loans.  Any home used via a VA loan must be approved by the Veterans Administration, and must be the borrower’s primary residence. Borrowers must show they have adequate income and the means to repay the loan, as well as obtain a Certificate of Eligibility. COE’s need to be verified, which can be done by a Veteran presenting their DD Form 214. Borrowers are advised to speak with their lenders for more information on how to complete the COE application.

While no cap is present on how much funding a borrower can receive via a VA loan, there are applicable loan limits enforced by the Veterans Administration on how much liability is assumed. Therefore, the total sum of the funding allotted to a borrower from a lender is indeed impacted.

Loan limits consist of the total a Veteran who has a full entitlement can receive, sans the need of a down payment. Lenders typically give up to a maximum of four times an entitlement, which usually is $36,000. Factors that affect the determination of a Veteran receiving the maximum allotment include credit, income verification and if the home’s sales price and appraisal are equal. Loan limits vary by county, as a main influence in determining a property’s value is its location. Gold Star Mortgage takes pride in serving Walnut Creek, CA, which is in Contra Costa County.

The loan limits for the county of Contra Costa are as follows:
 

County One-Unit Two-Unit Three-Unit Four-Unit
Contra Costa $625,500 $800,775 $967,950 $1,202,925

Call us today at (925) 930-7870 to get started on using a VA loan are an even better option for you to fulfill your housing dreams!