VA Home Loan Sacramento: Updated 2019. Getting a VA home loan in Sacramento County might at first glance seem to be full of paperwork, hard to get and the loan process itself simply takes too long. First time home buyers can glean as much information as they can about the process but with all the different loan terms and qualification guidelines, it can be overwhelming. But for those that do have the VA home loan benefit and want to come to the closing table with as little cash as possible, the VA program can’t be beaten. 100% financing, no mortgage insurance (PMI) low closing costs, the benefits are great for eligible vets. Whether you’re buying in Sacramento or Elk Grove or Folsom, keeping cash in your pocket while taking advantage of this zero down mortgage should be explored.
In most parts of the country the maximum VA loan limit is $510,400 yet in Sacramento County, the limit is a bit higher at $517,500 due to the higher median home values in the area. Applicants in search of higher loan amounts should read about the VA Jumbo loan. This program allows eligible Vets to borrow up to $1,500,000 – see the complete VA Jumbo Guide. If you’ve served in the armed forces, active duty for at least 181 days, served in the National Guard or Reserves for at least six years you’re likely eligible for this special program. But the only way a VA lender knows for sure is by seeing a copy of your Certificate of Entitlement. You can obtain this certificate by yourself with a copy of your DD-214 or just contact us below for assistance, which is the easiest way to get your certificate.
VA loan guidelines don’t specify a specific qualifying credit score but do require a VA lender to document a responsible credit history. This doesn’t mean perfect credit, just good. You can have a couple of recent blemishes and still qualify. While the VA doesn’t have a minimum credit score requirement most VA lenders do have in house requirements of a credit score at least 620.
Lenders are also required to determine that a borrower can document an ability to repay the new mortgage payment along with current monthly credit obligations. Lenders will add together the principal and interest payment with a monthly allotment for homeowners’ insurance and property taxes. This figure is then added to other debt such as a car payment or credit card minimum payment. Adding up all monthly debt is then compared to gross monthly income. VA guidelines ask this amount (debt ratio) to be no more than 43-48 percent. The exact amount will depend on your credit score and any savings (reserves) you may have.
VA loans also require the borrower to occupy the property being financed and is not to be used to buy a rental property or vacation home. However, if you’ve always wanted to retire on the beach, you can use your VA home loan benefit once again as long as the previous VA mortgage was paid off. You can sell your primary residence in Sacramento County and buy a retirement home using your VA benefit as long as the mortgage on the Sacramento home was paid off during the transaction. Your new VA lender will handle getting your eligibility restored using the documentation from the sale of your home.
Closing costs for veterans can also be lower compared to other programs. For instance, there is no monthly mortgage insurance payment as there is with other government-backed mortgage programs such as FHA and USDA rural loans. Veterans are restricted from paying certain costs such as loan processing fee or tax service. Veterans are only allowed to pay for an appraisal, credit report, title and title related charges, origination fees and a recording fee. All remaining fees must be paid for by the seller or with a lender-provided closing cost credit. Your loan officer can walk you through the steps needed to get your VA loan application approved. Read more about California VA Loan Approval here.
To learn more, or speak with a specialist – please submit the Info Request form on this page, or call ph: 800-743-7556.
Serving Vet’s nationwide including CA: Los Angeles, LA, Oakland, Bakersfield, Anaheim, Santa Ana, Riverside, Stockton, Chula Vista, Fremont, Irvine, San Diego, San Jose, San Francisco, Fresno, Sacramento