Finally, some good news was recently announced as the Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012 was been signed into law. This ACT has led to an increase in the VA Zero Down limits in the higher priced counties of California. Effective for any VA loan closing on August 6, 2012 through December 31, 2012, the new higher limits will help California Veterans looking to purchase high priced homes with either no or minimal down payment.
Zero Down to $1,000,000 in California with VA Loan
That is almost hard to believe. But yes, it is possible in certain California Counties to purchase a home for $1,000,000 with no down payment. Counties like Marin, Contra Costa, San Mateo, and San Francisco are all very high priced. A Veteran can buy a home for $1,000,000 and keep their money in the bank. It is important to note that $1,000,000 is not the loan limit. It is the limit if there is no down payment. If a Veteran buys a home for a price over $1,000,000 then they need a down payment based on a the following formula: 25% of the difference between the 100% limit and the purchase price of the home they are buying. For example, if a Veteran is buying a home in Marin for $1,600,000, then they would need a down payment of $150,000. That works out to be less than 10% down. And with NO MORTGAGE INSURANCE. There is truly no other type of financing that can come close to touching a VA loan, especially in high priced areas.
Jumbo VA Refinance in California
VA financing is not only for purchasing a home. It can also be used for refinancing a home. For homeowners who have lost equity, which has prevented them from refinancing and taking advantage of low 2012 interest rates, VA is awesome. VA offers a very low 30 year fixed rate option up to 100% loan to value. Currently, most lenders restrict a VA refinance to 90% loan to value, but there a few lenders that will allow 100% financing to a loan amount of $729,750, depending on the counties limit. While this is a bit of a niche, finding a California VA loan officer knowledgeable in VA financing is important in making sure you are getting the best possible VA loan solution.
Authored by Tim Storm, a California VA Loan Officer specializing in VA Loans. MLO 223456. – Please contact my office at the Home Point Financial. My direct line is 949-640-3102. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short-term. I also prepare a Video Explanation of your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.