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Pasley Realty Inc. |
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Property Sales & Management |
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Pasley Realty Inc. |
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Property Sales & Management |
Are you a fellow veteran? Want to buy a home using your GI benefits? We are here to help. There are two programs available to qualified veterans in California: The VA Loan Guarantee and the Cal Vet Home Loan Program.
VA Loan Guarantee Program
These loans are made by a lender, such as your local mortgage company, savings and loan or bank. VA's guaranty on the loan protects the lender against loss if the payments are not made, and is intended to encourage lenders to offer veterans loans with more favorable terms. The amount of guaranty on the loan depends on the loan amount and whether the veteran used some entitlement previously. There is no maximum VA loan but lenders will generally limit VA loans to $240,000. This is because lenders sell VA loans in the secondary market, which currently places a $240,000 limit on the loans. For loans up to $240,000, it is usually possible for qualified veterans to obtain no down payment financing. The amount of loan you can qualify for will depend on the borrower's income level and the appraised value of the property. The local VA office can provide more details on guaranty and entitlement amounts. These loans are often made without any down payment at all, and frequently offer lower interest rates than ordinarily available with other kinds of loans. Aside from the veteran's certificate of eligibility and the VA-assigned appraisal, the application process is not much different than any other type of mortgage loan. And if the lender is approved for automatic processing, as more and more lenders are now, a buyer's loan can be processed and closed by the lender without waiting for VA's approval of the credit application. Your local VA regional office may be reached by dialing 1-800-827-1000.
Ready to use that VA entitlement? Contact Mel Pasley today (562) 421-3094.
The CAL VET program has expanded eligibility so that nearly any honorably discharged veteran wanting to buy a home in California is eligible. They use bond funds to lend, and have funds for nearly any qualified veteran, regardless of when they served in the military. Veterans without wartime service do need to meet the criteria for Revenue Bond funds--first-time homebuyers who meet income and purchase price limitations. And remember, there are no residency restrictions--veterans are eligible regardless of where they entered service if they are buying a home in California. The CAL VET program differs from the VA Loan Guarantee program in that the State of California is the lender in this program. On February 2, 2008 CAL VET was offering interest rates of 5.455%, and 6.10% depending upon which program the veteran is eligible for. CAL-VET loans are variable interest rates loans with a cap on the rate increase of 0.5% (1/2 of 1%) over the life of the loan. Historically CAL-VET loans have been rarely adjusted and are not tied to any index. CAL-VET loan limits are up to $521,250 depending upon which program you qualify for.
With these low rates, and a low 2%* down payment requirement, Cal-Vet could be the loan of choice for veterans. The low interest rate, very low 1/2% lifetime cap on rate adjustments and other features makes the Cal-Vet loan very attractive. For more information on Cal-Vet loans go to their website at: www.cdva.ca.gov
Ready to use that CAL VET entitlement? Contact Mel Pasley today (562) 421-3094.
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*Not an offer to lend or a guarantee of loan rate or qualification. See you CAL VET lender for details.
Copyright© Pasley Realty Inc. 1999-2008. All rights reserved.
Updated 18 April, 2008.