VA loans are making a comeback in Orange County, CA. Similar to the gain in popularity for FHA financing, VA is proving to be a great program for those Orange County first time home buyers with VA eligibility. VA financing never went away, but with the run up in home prices in the early half of the decade it became very difficult to buy a home without going with one of those crazy subprime type loan programs that got everyone into trouble. Now those programs are gone and FHA and VA are going strong. Home prices have dropped back down to levels affordable to most renters.
Buy an Orange County Home with $0 Down with a VA Loan
While Conventional Fannie Mae and Freddie Mac financing requires 10% down with perfect credit, and FHA financing requires 3.5% down payment (with less than perfect credit), VA actually offer 100% financing. As an added bonus there is no monthly mortgage insurance on a VA loan, which can save $100’s of dollars per month compared to other types of financing over 80% of the properties value.
****Updated September 13, 2009. Effective October 1, 2009, FHA will require a full project approval prior to funding an FHA loan on a condo project. The list which HUD has maintained is going to be “erased”. The good news here is that VA has their own list. VA will be just about the only way for a home buyer to purchase a condo in Orange County, CA with anything less than 20% down. Orange County, CA VA buyers first need to check the VA condo approval list.
Orange County, CA VA Loan Limits for $0 Down Financing
For 2009 the Orange County, CA VA loan limit for $0 down payment financing is $737,500. There are plenty of single family homes that can be found for $737,500 or less in Orange County cities such as Tustin, Orange, Placentia, and Santa Ana. You can even negotiate to have the seller pay all of the closing costs, leaving the VA buyer with $0 out of pocket. The first thing to do is talk to a Orange County VA lender with experience closing VA loans. A good Orange CountyVA loan officer can prepare VA loan scenarios that will give you a complete breakdown of the purchase price, loan amount, payment, closing costs, and amount needed to close escrow. This will give you a good idea of what purchase price you are qualified for.
**The Orange County VA loan limits were announced in early December 2010 and have been updated in this article.**
$8,000 Tax Credit For First Time Buyers
If a VA eligible home buyer needed any extra incentive, there is the $8,000 First Time Home Buyer Federal Income tax credit. First time buyers who close escrow prior to December 1, 2009 can receive up to a $8,000 tax credit for buying a home. This means that not only can a VA home buyer purchase a home for $0 down, but the government will give them $8,000 for doing. Time is running out on the tax credit quickly. VA home buyers need who are interested in buying a home need to move quickly to get PreApproved and then find a home.
Once you are in your home and have a VA loan, you can also then take advantage of the IRRRL, or VA Streamline Refinance program, which is an easy way for Orange County, Ca VA borrowers to get a lower interest rate.
Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Orange County VA Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
* Licensed by California Dept. of Real Estate. Lic. # 01190897
