Military Home Loans (VA Loans)

Sacramento Mortgage Broker Provides VA & CalVet Home Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA home loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of a VA loan include:

  • Closing costs comparable – and sometimes lower – than other financing types.
  • No private mortgage insurance requirement.
  • Right to prepay loan without penalties
  • Mortgage can be taken over (or “assumed”) by the buyer when a home is sold.
  • Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.
  • Streamline refinances are permitted.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount, and depends on how many times the veteran has had a VA mortgage in the past. In most cases disabled veterans pay no funding fee at all.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan. This certificate of Eligibility is the most important document to have when applying for a VA loan.As your lender, we may be able to obtain it electronically on your behalf, but be aware it can sometimes take up to 4 weeks to receive.

In general, most veterans who have seen wartime service are automatically eligible for VA. Certain amounts of peacetime, noncombat and national guard service count towards eligibility. A dishonorable discharge generally results in ineligibility. Your DD214 or discharge paperwork is the second most important document to obtain. Even with bad credit a veteran can receive a VA home loan.

6 ways VA loans are different from other types of financing

  1. A cleared pest inspection is always required, no exception.
  2. A lender may charge, at maximum, 1% up front origination charge.
  3. Debt to income underwriting uses only 1 total ratio.
  4. Your childcare and commute expenses play a part in qualifying.
  5. Your spouse may not co-sign for the veteran unless you are legally married.
  6. A married spouse’s debts will count against the veteran, unless the home is located in a non-community property state.

CalVET loans are unique in that they are underwritten, processed, funded and closed by Calvet. Any broker or lender (such as Sunrise Vista Mortgage in Sacramento, CA) may only take the original loan application, qualify the borrower, collect documents and then passes on the file to CalVET. In other words no matter who you start the CalVET process with, it will always be the same. We can help you with the rough qualification for a CalVET loan, and give you an idea of its rates, terms and features, but once your loan is referred to CalVET, it is out of our hands.  Contact us for more information and a referral.