The 100% financing VA loan limits for Orange County in 2014 actually went up. The 2013 VA loan limit was $668,750, but for 2014 the 100% VA loan limit will be $687,500. This means it will be possible for an Veteran in Orange County to purchase a home for $687,500 with no down payment. *2016 limit is $625,500
Zero Down to $687,500 for Veterans in Orange County
With home prices making a big recovery over the past 12 months, the high loan limit is a great thing for Orange County Veterans, whether they are looking to refinance or buy a home. The most difficult part of of the loan process for any type of loan tends to be the verification of the down payment. Is it a gift, can it be a gift, is it seasoned, can deposits be papertrailed, where did that $300 cash deposit come from? All questions which can be a pain in the rear for borrowers on just about any type of financing. But with VA, where no down payment is required (to the 100% limit for the county), and debt to income ratios can be fairly high (even in combination with FICO's down to 620), the loan process can be surprisingly easy.
What is a Jumbo VA Loan?
While there are some Veterans who don't realize how high the 100% financing loan limit is in Orange County, most also don't realize is is possible to get a VA loan that is higher than the 100% VA loan limit. Known as a Jumbo VA loan, the loan amount will be higher than the loan limit. A down payment is required, but it still works out better than any other type of financing where the buyer is trying to use the least amount of funds possible.
The down payment is equal to 25% of the difference between the purchase price (when the price is higher than the 100% financing loan limit) and the loan limit. For example, let's say a Veteran is purchasing a home in Irvine, CA for $787,500 (to make it easy I'm using a price exactly $100,000 higher than the loan Orange County VA loan limit). The Veteran buyer would need a down payment of $25,000 (25% of the difference between $787,500 price and $687,500 loan limit). The base VA loan would be $762,500. Not bad when you consider this Veteran is buying a home for $787,500 with only 3.17% down payment. AND, there is no monthly mortgage insurance. AND, VA has surprisingly aggressive 30 year fixed rates.
The VA loan limits for California went higher thoughout most of counties. The all important first step in determining whether a VA loan is your best option is to contact a local Orange County VA loan specialist who can prepare custom loan scenarios detailing the purchase price, loan amount, payment, and amount needed to close. Getting a realistic view of the loan process up front is critical.
Authored by Tim Storm, an Orange County, CA Mortgage Loan Officer MLO 223456 - Please contact my office at the Home Point Financial. Direct line at 949-640-3102. www.OrangeCountyVALoans.com