The U.S. interest markets dropped suddenly and significantly today enabling VA loan refinance rates at the lowest they have been in months. VA home loans are special in that they allow for a VA streamline refinance to allow borrowers with a VA loan to lower their rates to current market rates. This loan is special because in most cases it wi
ll not require an appraisal, income, or asset documentation from the VA borrower. These features make the VA streamline refinance a very quick, painless and inexpensive way to lower your current interest rate and payment dramatically.
Below are some of the key points regarding the VA IRRRL streamline refinance:
- In most cases no appraisal is needed
- If you receive VA disability pay there the VA funding fee is waived
- The VA allows the VA streamline refinance on rental properties with VA loans previously inhabited by the VA borrower
- No income or asset documentation is required
- The VA loan streamline refinance can even be done on VA jumbo loans in places such as San Francisco, San Jose, Oakland, Los Angeles, Orange County and San Diego
VA eligible homeowners can also refinance their existing loans if they are not VA loans into a lower interest rate 30 year fixed VA loan. If you do not have a VA loan already, you can still refinance, but an appraisal would have to be done and income and asset documents would be required. But it can still make sense especially if you are in a jumbo loan or receive VA disability pay allowing the waiving of the VA funding fee.
So please call or email today if you have any questions regarding the VA loan refinance.
Rob Chomentowski
858-922-7899
Sr. Loan Officer (and VA specialist)
VA Loan Refinance in California is a post from: VA Home Loans Call Rob 858-922-7899
10% Down Jumbo Loan in California to $979,750 is a post from: FHA,VA and Conventional Home Loans in all 50 States
There is a excellent jumbo loan available in California that only requires 10% down. This loan goes to $979,750 which is above the conventional high balance loan limit of $729,750 in California. This jumbo loan can allow you to purchase a property in the more expensive coastal areas of California with only 10% down. Below are some of the highlights of this large California mortgage loan:
- This jumbo loan is available in 5, 7, and 10 year fixed rate periods and is a fully amortizing loan
- Primary residence only (no second homes or investments)
- This California jumbo loan is available on single family homes and condos
This jumbo loan option is especially interesting because on September 30th 2011 the Fannie Mae conventional temporary loan limits are set to expire and the maximum loan limits in California will drop to $625,000 in many parts of the state such as San Francisco, San Jose, Oakland, Los Angeles, Orange County and San Diego. So this large loan option will allow you to go well above those expired limits with only 10% down payment.
If you have any questions or would like to be be pre-approved, please don’t hesitate to call 858-922-7899 or homeloan8@gmail.com
Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)
858-922-7899
homeloan8@gmail.com
For many years in the state of California it did not make sense for many veterans and active military to buy with VA financing vs. rent. The prices from 2002-2008 were often so high in the state of California that it favored renting. But since 2008 when prices and VA interest rates fell dramatically in California, the tables have turned dramatically and today in most cases veterans and active military are making a much smarter financial decision to use VA financing buy vs. rent.
Below is a table that compares some of the benefits to buying vs. renting:
| Rent | Buy | |
| Monthly Payment | $2,200/mo rent payment | $2,200/mo PITI house payment |
| Tax Savings per year | None | $5,000 estimate |
| Loan principle pay down | None | $5,000 per year |
| Repairs and Maintenance | No | Yes |
| Inflation protection house payment (30 year fixed loan) | No | Yes |
| Ability to make renovations | No | Yes |
| Have to move if owner sells or moves in | Yes | No |
| Flexibility to move quickly | Yes | No |
So as you can see there some very compelling reasons to use your VA loan eligibility to buy a home in California vs. renting. Let me elaborate a little more on each:
- When you buy a home in the United States you get to write off the mortgage interest and property taxes. When you rent there are NO tax deductions. For a $300,000 house we estimate you would save $5,000 a year paying less federal taxes, which is equal to $416/mo! So already buying is $416/mo cheaper than renting with the same payment
- When you get a 30 year fixed fully amortizing VA loan, part of your monthly payment is interest, part is principle of the loan balance. You will pay $5,000 towards principle the first year of owning the house! That share of principle you pay vs. interest increases yearly. When you rent you only pay the landlords loan balance down. So that is another $416/mo savings vs. rent (we are now up to $832/mo less than rent!). Additionally, you will one day pay the mortgage off completely, where you will always have rent.
- When you own you will have to cover all the repairs and maintenance of a house. This is something you do not have to pay when you rent. So you do want to budget for this and keep this in mind.
- Inflation protection…when you get a 30 year fixed VA home loan, you are fixing your house payment for 30 years! It will not change. Rent will go up over time. Do you think rent will be the same in 10, 20, 30 years?
- When you buy you can make any changes you want to the house without asking the landlord. Also when you upgrade you are increasing the value of the house
- Finally when you rent vs. buy, you generally have a bit more flexibility to move (if you are not tied into a lease)
I hope this helps bring to light some of the advantages of using your VA home loan benefits to buy vs. rent. If you have any questions about getting approved for a VA home loan in California give us a call at 858-922-7899 or email at homeloan8@gmail.com .
Below are some up-to-date benefits of VA home loans in California:
- VA loan 30 year fixed rates are still near the lowest they have ever been in history
- VA mortgage loan limits go up to $1 million with 100% financing in many areas of California. Los Angeles and Orange County allow VA loans with 100% financing up to $700,000. San Diego 100% VA loans go up to $537,750
- VA home loan refinance allows a streamline loan to lower your VA interest rate to market
- VA loan credit does not have to be perfect
Rob Chomentowski
858-922-7899
Sr. Loan Officer (and VA specialist)
Buy With VA Financing Vs. Rent in California is a post from: VA Home Loans Call Rob 858-922-7899
VA loan requirements for income to qualify for a VA loan in California have many rules and guidelines. This post will go over the main things VA lenders are looking for regarding income when qualifying a borrower for a VA home loan in California. For all w-2 wage earners VA home loan requirements will ask for your last 30 days paystubs, last two years w-2’s and last two years federal tax returns all pages. If you are self-employed VA guidelines just require your last two years federal tax returns all pages and also your corporate tax returns if you own 25% or more of a corporation. So below is general information how VA financing looks at different kinds of income:
Bonus income – you will need to have received bonus income for two years and VA lenders will take an average of those two years
Self-employed-VA lenders will take an average of your last two years NET income off your federal tax returns. Depreciation can be added back to your income. If your income declined, VA lenders will go off the latest year only
Overtime – VA loan requirements are similar to bonus income and VA lenders will take a two year average of overtime
Hourly workers – If you are paid hourly many times VA lenders will take a two year average of your income and possibly less if your income is declining.
Child support income –VA guidelines allow you to count child support income if you will receive it for three more years and you can document checks received the last 12 months
Social security income – allowed to be counted
Commission income – Two year history needed and two year average taken
2106 Unreimbursed business expenses – VA loan guidelines require these deductions to be subtracted from your income. Be careful of this.
Rental property income - VA lenders will go off the NET income off your schedule E and average the last two years (be careful of if there is a loss)
So I hope this helps you think about your income when preparing to apply for a VA home loan in California. Please give us a call at 858-922-7899 or email at homeloan8@gmail.com if you have any questions about getting approved for a VA loan in California.
Below are some highlights of VA home loans in California:
- VA loan credit score does not have to be perfect, you can often still get the best rates with a 620 VA credit score
- VA loan limits in California go up to $700,000 to $1 million with zero down in areas such as San Jose, San Francisco, Los Angeles, Orange County, and San Diego. Give us a call for VA loan limits in you areas. We lend in every corner of California including Fresno, Sacramento, Stockton, Redding and more!
- You can get a VA loan in California only two years after a short sale, foreclosure or bankruptcy
Rob Chomentowski
858-922-7899
Sr. Loan Officer (and VA specialist)
VA Home Loan Requirements For Income in California is a post from: VA Home Loans Call Rob 858-922-7899
FHA Home Loan Requirements After Bankruptcy in California is a post from: FHA,VA and Conventional Home Loans in all 50 States
The good news is you can apply for a FHA loan in California only two years after a Chapter 7 bankruptcy. FHA loan requirements only require that you be two years out from Chapter 7 discharge to be eligible for a FHA home loan. For the less common Chapter 13 bankruptcy, it only has to be 12 months since your bankruptcy discharge before you can apply for a FHA loan in California. For a Chapter 13 you also have to have made all your Chapter 13 payments to creditors on time, those payments are included in your debt-to-income ratios to qualify and you have to get an OK from the court to enter into a new home mortgage.
Additionally, after both types of bankruptcies, you must have not had any derogatory credit items after the bankruptcy. This is absolutely key. FHA loan guidelines are very strict about wanting to see NO late payments, collections, judgments, charge-offs, etc… after the bankruptcy. You must show that you have re-established good credit standing with current active trade lines.
And to reiterate, make sure you check the discharge date of your bankruptcy (not the date you filed) as the starting date for the timeline before you can apply for a FHA loan. Give us a call if you are close to this date and we can do a FHA loan application and credit check for you to double check on your discharge date and pre-approve you for a FHA loan in California. Please email at homeloan8@gmail.com or call 858-922-7899 if you have any questions.
Some other highlights of FHA home loans in California:
- You can get a FHA loan three years after a short sale or foreclosure
- FHA loan requirements allow a 55% debt-to-income ratio where conventional loans generally stop at 45%
- FHA loan limits in many coastal California locations such as San Jose, San Francisco, Los Angeles and Orange County allow up to a $729,750 loan amount with 3.5% down payment
Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)
858-922-7899
homeloan8@gmail.com
VA home loan requirements require that condos and townhomes have to be on the VA approved condo list before VA will provide financing for active military and veterans to purchase condos and townhomes using VA financing. There are many requirements a condo/townhome project have to pass before VA will add that condo/townhome complex to the VA approved list. Among these requirements are:
- Project has over 50% of the units occupied by owners
- Less than 15% of the units 30 days or more late on HOA dues
- Project has adequate cash reserves set aside for maintenance
- Project is not in litigation
There are some very nice condo projects across the state of California that are on the VA approved condo list. Breeza a condo project in downtown San Diego for example is now on the list. Active military and veterans are able to purchase with 100% financing attractive newer condo such as Breeza in tremendous downtown locations close to San Diego Bay, Little Italy and other attractions downtown. These condos offer close proximity to military bases for active military members and amenities such as fitness centers, secured parking and rooftop terraces with views.
There are hundreds of other VA approved condos across San Diego County, send us an email at homeloan8@gmail.com or call 858-922-7899 if you would like us to search if a condo or townhome you are interested in anywhere in California is VA approved. A short ample of some other condos in San Diego that are VA approved:
- Bridgeport at 4S Ranch
- A Loft Cortez Hill
- Aqua Vista in Little Italy
- Amante at 4S Ranch
- Atlas
- Atria
- Gianni at 4S Ranch
- The Egyptian
- Solara Lofts
And some highlights if VA loans in California today:
- You can qualify for a VA loan in California only two years after a short sale, foreclosure or chapter 7 bankruptcy
- VA loan limits go up to 100% financing to $1 million in much of the Bay Area and $697,000 for much of Southern California Coast
- If you receive VA disability pay the VA funding fee is waived
- You can get a VA cash out refinance loan to 95% of your home’s value
Rob Chomentowski
858-922-7899
Sr. Loan Officer (and VA specialist)
VA Financing Approved For Breeza Condos Downtown San Diego is a post from: VA Home Loans Call Rob 858-922-7899
Conventional vs. FHA Loans And Non-Borrowing Spouses is a post from: FHA,VA and Conventional Home Loans in all 50 States
One of the key differences with conventional loans vs. FHA loans is that FHA loans in California require a non-borrowing spouse’s credit report to be run at application even if that spouse is not going to be on the loan. The credit quality of that non-borrowing spouse cannot be a reason for denial, but that non-borrowing spouses debt obligations (auto loans, credit cards, student loans) have to be included in the debt-to-income ratio for FHA loan qualification. Additionally any major collections or past due charge-offs may become a factor in FHA loan approval. Now the difference with conventional loans is the non-borrowing spouses credit report does NOT have to be run. Therefore conversely, their debt obligations do not have to be included in the debt-to-income ratio for loan qualification.
So to clarify, if you have a spouse with a lot of debt obligations in their name you don’t want to be included in the debt-to-income ratio for qualification, you may want to consider a conventional loan vs. FHA. Conventional loans offer as low as 3% down payment loans with no up front mortgage insurance and lower monthly mortgage insurance than FHA.
If you have any questions about getting approved for a FHA, conventional (or VA) home loan in California please don’t hesitate to call at 858-922-7899 or email at homeloan8@gmail.com
Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)
858-922-7899
homeloan8@gmail.com
FHA Loan Requirements To Exclude Co-Borrower Debt in California is a post from: FHA,VA and Conventional Home Loans in all 50 States
Many times people will co-sign for a car loan, mortgage, credit card and other types of debt for relatives or friends. When you apply for a FHA home loan in California and the FHA lender checks your credit, this debt will of course appear on your FHA credit report even though you are not making the payments.
The good news is FHA loan guidelines allow applicants a way to exclude this co-signed debt from their FHA loan qualification. To exclude debt that you are a co-borrower on from your FHA loan application, you will have to provide 12 months canceled checks or some other type of proof that someone other than you has been making the payment on the debt you are a co-signer on. Additionally, FHA loan requirements state the individual making the payments must be a co-borrower on the debt they are making payments on. So if debt appears on your credit report and someone else is making the payment but they are not a co-borrower on the debt, you can’t exclude it.
So I hope this is good news to some who are applying for a FHA home loan in California. If you have any questions or would like to get approved for a FHA loan in California please don’t hesitate to email me at homeloan8@gmail.com or call 858-922-7899.
Some advantages of FHA loan mortgages in California:
- FHA loans have the most liberal debt-to-income ratios of up to 55% allowing you to qualify for more
- FHA loan credit score does not have to be perfect. Give us a call if you think you have credit issues we are experts at helping
- FHA loans allow non-occupant co-borrowers
- FHA loan guidelines allow 3.5% down on 2-4 units owner occupant purchases
Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)
858-922-7899
homeloan8@gmail.com