How a California Veteran Can Qualify for a VA Loan
The VA Home Loan Program is designed to help California veterans who served honorably, and their surviving spouses, buy homes as they start to lay down roots here in California. The VA loan program does not require a down payment or mortgage insurance and offers interest rates that are usually below market. Best of all, there are no loan or income limits. Find out how a California Veteran can qualify for a VA Loan and get started today!
Here are the steps to qualifying for a VA loan.
=>STEP 1: Decide if the VA Home Loan is right for you
There are many reasons why someone might want to decide if the VA Home Loan is right for them. Some people may be interested in a VA home loan because they have very little money saved, or because qualifying for a Conventional loan is more difficult. Another big reason is that there is no down payment required with the VA loan. And of course, since interest rates tend to be low on VA loans and no mortgage insurance is required, the mortgage payment will be lower with a VA loan when compared to another loan (like an FHA loan). Lastly, another great benefit of getting a VA home loan is that there are no income limits and no loan limits.
=>STEP 2: Determine your eligibility and entitlement with the VA
The easiest way to determine eligibility for a va loan is to have a VA Lender submit your DD214 through the Va Lenders portal and retrieve your Certificate of Eligibility. But if you’re wondering what the basic requirements are then the information below will be helpful.
When did you serve? You meet the minimum active-duty service requirement if you served for at least this amount of time: Between September 16, 1940, and July 25, 1947 (WWII)
- 90 total days, or
- Less than 90 days if you were discharged for a service-connected disability
Between July 26, 1947, and June 26, 1950 (post-WWII period)
- 181 continuous days, or
- Less than 181 days if you were discharged for a service-connected disability
Between June 27, 1950, and January 31, 1955 (Korean War)
- 90 total days, or
- Less than 90 days if you were discharged for a service-connected disability
Between February 1, 1955, and August 4, 1964 (post-Korean War period)
- 181 continuous days, or
- Less than 181 days if you were discharged for a service-connected disability
Between August 5, 1964, and May 7, 1975 (Vietnam War), or
February 28, 1961, to May 7, 1975, if you served in the Republic of Vietnam
- 90 total days, or
- Less than 90 days if you were discharged for a service-connected disability
Between May 8, 1975, and September 7, 1980 (post-Vietnam War period), or
Between May 8, 1975, and October 16, 1981, if you served as an officer
- 181 continuous days, or
- Less than 181 days if you were discharged for a service-connected disability
Between September 8, 1980, and August 1, 1990, or
Between October 17, 1981, and August 1, 1990, if you served as an officer
- 24 continuous months, or
- The full period (at least 181 days) for which you were called to active duty
Between August 2, 1990, and the present (Gulf War)
- 24 continuous months, or
- The full period (at least 90 days) for which you were called or ordered to active duty, or
- At least 90 days if you were discharged for a hardship, a reduction in force, or for convenience of the government, or
- Less than 90 days if you were discharged for a service-connected disability
You separated from service after September 7, 1980, or
After October 16, 1981, if you served as an officer
- 24 continuous months, or
- The full period (at least 181 days) for which you were called or ordered to active duty, or
- At least 181 days if you were discharged for a hardship, a reduction in force, or for convenience of the government, or
- Less than 181 days if you were discharged for a service-connected disability
If you’re on active duty right now then you just need 90 continuous days.
=>STEP 3: Find a lender that works exclusively with the VA
You may know this already, but the VA is not a lender. But VA does guarantee the loan for the lender as long as it is underwritten to VA guidelines. It’s up to you to find a lender who specializes in VA loans.
Here are some things to look for when you’re looking for a lender:
-Is the lender a VA-approved lender? If not, they can’t approve your loan documents with the VA and will need to coordinate this through another company.
-Does the lender have a good reputation? You’ll want to see if other veteran borrowers say something positive about their experience working with them.
-Can you reach someone on the phone to ask questions? This is important. Working with a VA lender who is difficult to get on the phone will be frustrating as you get through the process. The best of all worlds is to find a California VA Loan specialist who not only answers the phone but can also answer your questions and effectively guide you through the home buying process.
If you can answer ‘yes’ to these three questions, then they might be worth your consideration. You’ll want to make sure they have the ability to originate VA loans in California before you give them any personal information.
=>STEP 4: Submit a formal application with the lender to get PreApproved for the VA Loan program. The following is a list of steps that you will need in order to submit an application:
1) Complete and submit the VA Application Package online. The California VA lender will be able to provide a link to their secure online loan application. The application should be very intuitive and easy to complete.
2) Provide any additional required documentation (i.e., DD214, tax returns, W2’s, paystubs, LES statement, bank statements, etc). The lender should have a secure method that you can use to upload the documentation to them for review.
3) Stay in contact with your California VA Loan specialist. He will be able to answer your questions and will stay with you all the way to the end, acting as your “Home Buyer’s Guide.”
=>STEP 5: Begin house hunting – your VA loan is just a signature away!
You should now be PreApproved for your VA loan. It’s important to know that PreApproval means different things to different lenders. Some lenders will issue a “PreApproval Letter” without even reviewing the file or documentation. This is should be more of a Prequalification if even that. The best PreApproval is a “fully underwritten” PreApproval. This is where the lender processed your loan application as if you already have an accepted offer. You’re not going to get a fully underwritten PreApproval in 10 minutes or even 24 hours. It could take more than a week, maybe two, to get a fully underwritten PreApproval. But once you have it you are as strong as a cash buyer. All that is needed is a purchase contract, clear title, and appraisal.
Most house hunting is done online these days. But it will be helpful to work with a Realtor who is familiar with VA financing, especially if you intend to buy a condo. If you ARE planning to buy a condo then you’ll want to limit your search to VA-approved condos. And this again is where working with a VA loan specialist is critical. Otherwise, you could end up frustrated while looking at homes that are not VA-approved. Depending on where your home search is there are websites that can help narrow down the search to only condos in VA-approved condo projects. For example www.CaliforniaVeteranHomes.com and www.OrangeCountyVACondos.com.
=>STEP 6: Make an offer to purchase and close on your home.
It’s no secret that the housing market in California is tough. You have to be patient and persistent when buying a house. But with your VA loan PreApproval letter in hand, you will be in a very strong position when competing with other offers. Make sure to keep your California VA Loan Officer involved in the process so that he can provide updated numbers for the homes you are interested in. Remember, your California VA Loan Officer will be your Guide and is there to answer all of your VA loan questions.
=>STEP 7: Move into your new home
This is the best part. After a typical 30 days in “escrow”, you should be ready to close and then own your home. Schedule the moving van and make your new home your own. And again, keep your VA Loan Officer in the loop if you have any questions on how or where to make your payment. A good California VA Loan Officer will make sure you have a solid understanding of what to look out for after your loan closes, like Supplemental Property taxes which can be a surprise to new home buyers.
Authored by Tim Storm, a California VA Loan Officer specializing in VA Loans. MLO 223456. – Please contact my office at Arbor Financial Group NMLS 236669. My direct line is 949-829-1846. I will prepare custom VA loan scenarios that 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 hav
The VA Home Loan Program is designed to help California veterans who served honorably, and their surviving spouses, buy homes as they start to lay down roots here in California. The VA loan program does not require a down payment or mortgage insurance and offers interest rates that are usually below market. Best of all, there are no loan or income limits. Find out how a California Veteran can qualify for a VA Loan and get started today!
Here are the steps to qualifying for a VA loan.
=>STEP 1: Decide if the VA Home Loan is right for you
There are many reasons why someone might want to decide if the VA Home Loan is right for them. Some people may be interested in a VA home loan because they have very little money saved, or because qualifying for a Conventional loan is more difficult. Another big reason is that there is no down payment required with the VA loan. And of course, since interest rates tend to be low on VA loans and no mortgage insurance is required, the mortgage payment will be lower with a VA loan when compared to another loan (like an FHA loan). Lastly, another great benefit of getting a VA home loan is that there are no income limits and no loan limits.
=>STEP 2: Determine your eligibility and entitlement with the VA
The easiest way to determine eligibility for a va loan is to have a VA Lender submit your DD214 through the Va Lenders portal and retrieve your Certificate of Eligibility. But if you’re wondering what the basic requirements are then the information below will be helpful.
When did you serve? You meet the minimum active-duty service requirement if you served for at least this amount of time: Between September 16, 1940, and July 25, 1947 (WWII)
- 90 total days, or
- Less than 90 days if you were discharged for a service-connected disability
Between July 26, 1947, and June 26, 1950 (post-WWII period)
- 181 continuous days, or
- Less than 181 days if you were discharged for a service-connected disability
Between June 27, 1950, and January 31, 1955 (Korean War)
- 90 total days, or
- Less than 90 days if you were discharged for a service-connected disability
Between February 1, 1955, and August 4, 1964 (post-Korean War period)
- 181 continuous days, or
- Less than 181 days if you were discharged for a service-connected disability
Between August 5, 1964, and May 7, 1975 (Vietnam War), or
February 28, 1961, to May 7, 1975, if you served in the Republic of Vietnam
- 90 total days, or
- Less than 90 days if you were discharged for a service-connected disability
Between May 8, 1975, and September 7, 1980 (post-Vietnam War period), or
Between May 8, 1975, and October 16, 1981, if you served as an officer
- 181 continuous days, or
- Less than 181 days if you were discharged for a service-connected disability
Between September 8, 1980, and August 1, 1990, or
Between October 17, 1981, and August 1, 1990, if you served as an officer
- 24 continuous months, or
- The full period (at least 181 days) for which you were called to active duty
Between August 2, 1990, and the present (Gulf War)
- 24 continuous months, or
- The full period (at least 90 days) for which you were called or ordered to active duty, or
- At least 90 days if you were discharged for a hardship, a reduction in force, or for convenience of the government, or
- Less than 90 days if you were discharged for a service-connected disability
You separated from service after September 7, 1980, or
After October 16, 1981, if you served as an officer
- 24 continuous months, or
- The full period (at least 181 days) for which you were called or ordered to active duty, or
- At least 181 days if you were discharged for a hardship, a reduction in force, or for convenience of the government, or
- Less than 181 days if you were discharged for a service-connected disability
If you’re on active duty right now then you just need 90 continuous days.
=>STEP 3: Find a lender that works exclusively with the VA
You may know this already, but the VA is not a lender. But VA does guarantee the loan for the lender as long as it is underwritten to VA guidelines. It’s up to you to find a lender who specializes in VA loans.
Here are some things to look for when you’re looking for a lender:
-Is the lender a VA-approved lender? If not, they can’t approve your loan documents with the VA and will need to coordinate this through another company.
-Does the lender have a good reputation? You’ll want to see if other veteran borrowers say something positive about their experience working with them.
-Can you reach someone on the phone to ask questions? This is important. Working with a VA lender who is difficult to get on the phone will be frustrating as you get through the process. The best of all worlds is to find a California VA Loan specialist who not only answers the phone but can also answer your questions and effectively guide you through the home buying process.
If you can answer ‘yes’ to these three questions, then they might be worth your consideration. You’ll want to make sure they have the ability to originate VA loans in California before you give them any personal information.
=>STEP 4: Submit a formal application with the lender to get PreApproved for the VA Loan program. The following is a list of steps that you will need in order to submit an application:
1) Complete and submit the VA Application Package online. The California VA lender will be able to provide a link to their secure online loan application. The application should be very intuitive and easy to complete.
2) Provide any additional required documentation (i.e., DD214, tax returns, W2’s, paystubs, LES statement, bank statements, etc). The lender should have a secure method that you can use to upload the documentation to them for review.
3) Stay in contact with your California VA Loan specialist. He will be able to answer your questions and will stay with you all the way to the end, acting as your “Home Buyer’s Guide.”
=>STEP 5: Begin house hunting – your VA loan is just a signature away!
You should now be PreApproved for your VA loan. It’s important to know that PreApproval means different things to different lenders. Some lenders will issue a “PreApproval Letter” without even reviewing the file or documentation. This is should be more of a Prequalification if even that. The best PreApproval is a “fully underwritten” PreApproval. This is where the lender processed your loan application as if you already have an accepted offer. You’re not going to get a fully underwritten PreApproval in 10 minutes or even 24 hours. It could take more than a week, maybe two, to get a fully underwritten PreApproval. But once you have it you are as strong as a cash buyer. All that is needed is a purchase contract, clear title, and appraisal.
Most house hunting is done online these days. But it will be helpful to work with a Realtor who is familiar with VA financing, especially if you intend to buy a condo. If you ARE planning to buy a condo then you’ll want to limit your search to VA-approved condos. And this again is where working with a VA loan specialist is critical. Otherwise, you could end up frustrated while looking at homes that are not VA-approved. Depending on where your home search is there are websites that can help narrow down the search to only condos in VA-approved condo projects. For example www.CaliforniaVeteranHomes.com and www.OrangeCountyVACondos.com.
=>STEP 6: Make an offer to purchase and close on your home.
It’s no secret that the housing market in California is tough. You have to be patient and persistent when buying a house. But with your VA loan PreApproval letter in hand, you will be in a very strong position when competing with other offers. Make sure to keep your California VA Loan Officer involved in the process so that he can provide updated numbers for the homes you are interested in. Remember, your California VA Loan Officer will be your Guide and is there to answer all of your VA loan questions.
=>STEP 7: Move into your new home
This is the best part. After a typical 30 days in “escrow”, you should be ready to close and then own your home. Schedule the moving van and make your new home your own. And again, keep your VA Loan Officer in the loop if you have any questions on how or where to make your payment. A good California VA Loan Officer will make sure you have a solid understanding of what to look out for after your loan closes, like Supplemental Property taxes which can be a surprise to new home buyers.
Authored by Tim Storm, a California VA Loan Officer specializing in VA Loans. MLO 223456. – Please contact my office at Arbor Financial Group NMLS 236669. My direct line is 949-829-1846. I will prepare custom VA loan scenarios that 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 hav
