There has not been a better time in years to purchase a California home with a VA loan. With higher VA loan limits in California than other parts of the country, California Veterans are able to buy homes with no down payment to any price since the VA loan limits were eliminated in 2020. California VA loan limits vary by county. (Be sure to check out the California VA loan limits page. ) Taking out a VA mortgage loan on a new home purchase is a fantastic way to finance a property with a low interest rate, with little to no required down payment.
The rumor is that purchasing a home in California with a VA loan is very difficult. But in actuality, the process is much easier than many believe. Of course it helps to work with a California Direct VA lender or loan officer who knows the in’s and out’s of the program.
The California VA mortgage loan process is as follows:
- Choose a Direct California VA lender, present your Certificate of Eligibility, and finish the loan application. You will also provide your income and asset documentation to your lender. Your lender will check your credit and get an Automated approval. PreApproval is necessary before making an offer on a home.
- Find the California property you would like to buy and arrange the purchase with the seller. You’ll then sign a purchase contract conditional upon final approval of a VA loan.
- If the appraised value is acceptable to all involved parties, and the California lender determines that your loan package meets the VA loan requirements, your mortgage can be approved. Having a PreApproval gives you a great head start on the final approval.
- You (and co-borrower, if applicable) will then go to the escrow company to sign the loan documents and escrow closing papers. If any money is needed to close, you will then wire funds to the escrow/title company.
Once the California VA lender funds your loan, the Deed of Trust will be recorded. Recording is the final step before receiving the keys to your California home. You will then own your home with a low-interest VA mortgage loan, with no private monthly mortgage insurance required!
A common question is, “How long does it take to close a VA loan?” The overall period of time it takes for a VA mortgage closing varies depending on several factors, including potential delays by the seller. It also depends on how quickly the VA borrower is able to respond to documentation requests.
As of late, getting full approval and closing your VA purchase mortgage has been taking between 3 weeks to 45 days. This time-frame is more or less the same as that for conventional loans.
There are some things you can do to ensure your loan process is as quick as possible, such as sending requested documents as soon as possible, working with a knowledgeable California VA loan specialist, and making your hours of availability as flexible as you can.
For further advice on how to make sure your loan process goes as fast and smoothly as possible, please read our article titled VA Mortgage Approval – How Long Does It Take?