Orange County FHA, VA & First Time Buyer Loan Information

My goal is to provide valuable information for home buyers, both First Time Buyers and Move Up Buyers. This information will be about loan programs such as FHA ,VA, Conventional Fannie Mae and Freddie Mac, Reverse Mortgages, and even Portfolio Jumbo programs. I will also touch on tax advantages of homeownership, Rent vs. Own analysis, and any other aspect of loans and home ownership that will be of interest to Orange County home buyers and homeowners.

VA 100% Limit in Orange County Increases to $675,000 for rest of 2012

Orange County VA Loan Limits 2012Effective August 6, 2012, the VA loan Limits for Orange County, CA were  increased. This is an unexpected bit of good news. For most of 2012 the VA loan limit in Orange County was $621,000. While that sounds great, it was actually a drop from the 2011 limit of $700,000. But now, with Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012 being signed into law, the new 100% financing limit in the great OC is $675,000.

Zero Down to $675,000 with VA Financing in Orange County

There is sometimes confusion about what the VA loan limit is and what it means. When a VA loan limit is mentioned, it typically is in relation to the amount of down payment required, in this case $0 down payment. There is actually not a maximum loan amount for a VA loan. But what lenders allow and what VA allows are two different matters. Some lenders allow VA financing up to $729,750, some to $1,000,000, and some as high as $1,500,000. But when the purchase price is higher than the 100% financing limit for the county then a down payment is required.

Jumbo VA Loans

A Jumbo VA loan is the term given to VA loans that are greater than the 100% limit. For example, in Orange County, where the new limit is $675,000, it is still possible to buy a much more expensive home. The Veteran must have a down payment equal to 25% of the difference between the purchase price and the $0 down loan limit. If John Major wants to buy a home in Irvine for $775,000, then he would need  a down payment of only $25,000. He'll be able to get a VA loan of $750,000.  ($775,000 - $675,000 = $100,000 difference. 25% of $100,000 is $25,000 down payment.) So for only 3.23% down payment, a Veteran in Orange County can buy a home. And best of all, VA 30 year fixed interest rates are very low and there is no Monthly Mortgage Insurance like on any other type of financing with less than 20% down payment.

Refinance from Conventional to VA Loan to 100% Loan to Value

It is important to note that VA financing is great for refinancing as well as purchasing. An eligible Veteran who currently has a Conventional loan but less than 20% equity in their home may find that a refinance to a VA loan is their best option for saving money. Lenders will allow cash out refinancing to 100% loan to value. It is also possible to combine a 2nd or Home Equity Line with a Conventional 1st mortgage up to 100% loan to value. The first step is to find a local Orange County VA loan specialist who can prepare custom VA loan scenarios.  

Authored by Tim Storm, an Orange County, CA VA Mortgage Loan Officer MLO 223456– Please contact my office at Home Point Financial for more information about an Orange County, CA Mortgage. 949-829-1846.

Contact us for your Orange County VA Mortgage:

949-829-1846 | tstorm (at)

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Comment balloon 2 commentsTim Storm • August 19 2012 10:39PM
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