VA Loans TemeculaVA loans are common mortgages for active military personnel and Veterans by the U.S. Department of Veterans Affairs (VA) and issued by qualified lenders and banks. The VA mortgage program’s primary objective is to ensure that eligible veterans have an adequate home financing option available.

VA loans provide up to 100% financing to qualified buyers. Today VA remains one of the last 100% financing mortgages available.

The main benefit of the VA loan is that it allows veterans financing of up to 100 percent, with no mortgage insurance, or “PMI” as most know this term. No PMI is a great benefit for the veterans since they qualify directly for the entire loan amount, and may even get larger loans while making a similar payment.

Like all Government home loans, VA does have a funding fee that is included in the buyer’s final loan amount. The funding fee and based on many factors including down payment, etc. The latest 2021 funding fee chart can be viewed below.

VA Funding Fee 2020

VA also offers many great refinance options to eligible Veterans. Interest Rate Reduction Refinance (IRRRL) is a streamline refinance option that allows Vets to reduce their interest rate with little paperwork and no appraisal. Cash-out refinance is great for Veterans that need cash for home improvements, debt consolidation, and many other things.

The VA loans ensure that veterans are able to qualify for larger loan amounts, which is more than the traditional conforming mortgage programs. Conforming loans have limits in place, as of 2021 the cap for most locations is $548,250. The exception is high-cost locations where loan limits can reach $822,375 for 1 unit properties.  Recent changes to the VA loan have removed loan limits to first-time users of the program.

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