VA Loan

San Diego MortgageSan Diego Mortgage | Veteran Home Loans

The VA Loan is without question the BEST loan product on the Planet.  If You have the chance to make Your San Diego Mortgage a VA Loan, then You should absolutely do so.  If You are eligible for a VA Loan and it was actually in Your best interest to get another Loan Product, it would be a HUGE anomaly.

The Veteran’s Administration (VA) insures private loans that allow over 25,000,000 active-duty service members, veterans, and their families to buy a home with very little or no money down.  ALL VA loans are offered directly by Banks and other private lenders, but are fully guaranteed by the United States Government.

The ADVANTAGES are numerous for a VA Loan in San Diego:
#1 – No money down.
You can get 100% financing or essentially no down payment.  It is just one loan with the same, low interest rate.  There is NO other loan product like this in existence.

#2 – No Mortgage Insurance!
Any time You borrow money for a mortgage and You aren’t putting 20% of the purchase price as a down payment, You will have mortgage insurance.  Mortgage Insurance is a monthly payment You have to make which helps the Bank mitigate risk in case You Foreclose.  With a VA Loan, there is absolutely ZERO mortgage insurance because it’s already insured by the Federal Government.

#3 – Easy to qualify.
As long as You are eligible for a VA Loan, qualifying is easier than any other loan product.  Although there are guidelines, like with any Loan Program, the VA Loan guidelines are designed to be taken with a grain of salt.  In other words, exceptions can be made for almost any circumstance as long as it’s well-documented.

There are some DRAW-BACKS as well:
#1 – The VA Funding fee.
There is an initial payment to the VA insurance fund called a “VA Funding Fee”, which is 2% of the loan amount.  This fee is added in to the loan, so You don’t have to pay it out of pocket.  However, if You have a $300,000 loan, it’s a $6,000 fee, so pretty expensive.  It’s still cheaper than having mortgage insurance though!

#2 –  You start off under water.
Similarly to an FHA Loan or any other low-down-payment financing, as soon as You own the property You are immediately up-side-down.  Factor in at least a 7% “Cost of Sale” if You need to sell it and that will explain it all.  Especially if You’re getting 100% financing and also financing the VA Funding Fee, You start things off owing 102% of Your home’s value.  Not a great start to be honest.

#3 – Not everyone is eligible.
To determine Your eligibility, click on VA Loan Eligibility to go to the website for the VA with details.

The Bottom Line is, if You’re eligible for a VA Loan and You are looking to get a Mortgage in San Diego, the VA option should be Your first choice.  Email me below with questions if You need my help.  God Bless the Men and Women who serve this Country.

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