VA Loans: What Military Home Buyers in San Diego Need to Know
There is no better way to purchase a home for San Diego military service members and veterans than with a VA loan from the U.S. Department of Veterans Affairs.
That’s because a VA loan for military home buyers offers many attractive benefits.
A VA loan is typically easy to qualify for, the interest rates are low, and you do not have to pay a down payment or obtain mortgage insurance. The closing costs are also lower, and they come with a federal government guarantee.
What Can I Buy with a VA Loan?
That’s a great question! You have many options.
You can use a VA loan to purchase a detached home, condominium, manufactured house, or multi-unit home (such as a duplex).
The only stipulation is that the home must be your primary residence. You cannot purchase a house meant to be a vacation home or to serve as a rental of any kind.
Types of Loans Available for Military Home Buyers
First, did you know the U.S. Department of Veterans Affairs does not fund VA loans? However, they play an essential role by setting the guidelines and requirements for the lenders who do, which include banks and credit unions.
Now that we’ve established that, let’s take a look at the three types of available loans for military service members and veterans.
Purchase Loan
A purchase loan is the standard VA loan for purchasing a home at competitive rates and terms. One of its most attractive benefits is that it often requires no down payment. Compare that to a conventional home loan, where a borrower can generally expect to pay a down payment of up to 20 percent.
Interest Rate Reduction Refinance Loan (IRRRL)
If you decide to refinance an existing VA loan, you can do it through the IRRRL, which will give you a lower interest rate, help you get a lower monthly payment or both. You can also use the IRRRL to switch from an adjustable-rate loan to a fixed-rate loan.
Cash-Out Refinance Loan
A cash-out refinance loan is unique because it allows a service member or veteran to refinance up to 100% of their home’s value. It is designed to help you cover significant family expenses, such as school and medical bills, or take on projects like major home improvements. You can even use the loan to purchase a vehicle.
Am I Eligible?
The U.S. Department of Veterans Affairs bases eligibility on your service history and duty status. You can find out the requirements for both active duty and National Guard and Reserve members here.
How Do I Apply for a VA Loan?
Applying for a VA loan is as easy as 1-2-3:
- First, you select a VA-approved lender, such as National Home Loans.
- The lender will help you obtain a Certificate of Eligibility (COE), which is a form that proves you are eligible for the loan.
- You will then get pre-qualified for a loan amount and receive a pre-qualification letter.
That’s it! You are now ready for the best part of the home-buying process – going house hunting!
At National Home Loans, we are dedicated to helping our valued service members and veterans obtain VA loans. We are happy to answer your questions and encourage you to give us a call at (858) 227-7447. You can also visit our Military Home Loans resource page to learn more.
