If you are: an active service person or a veteran or a surviving spouse of a veteran, you are eligible for VA loans, Santa Barbara, CA, provided you also meet the other requirements indicated by the Department of Veterans Affairs.
Before you apply for a VA loan, it makes sense to know some things that may come in handy in the application process. With that, we have below some of the frequently asked questions – answered to give you some insights into the VA loan application process.
How do I prepare for a VA loan application?
You can begin with the following:
- Finding out the length of service
- Obtaining Form DD-214
- Getting a certificate of eligibility
- Determining your debt-to-income ratio
- Ensuring the house conforms to VA loan limits
- Getting a pre-approval letter
Do I need to pay for a down payment?
No. a down payment is not a requirement. You can make your purchase immediately. It is worth noting also that with VA loans, Santa Barbara, CA, you can avoid steep mortgage insurance fees. (your mortgage broker should be able to explain to you this with ease)
How much will be the VA loan approved amount?
For most U.S. counties in 2021, the standard VA loan limit is at USD 548,350 – that’s bigger than USD 510,400 in 2020. The Veterans Affairs also indicated that those with full entitlement no longer have limits on loans over USD 144,000. Meaning, you will not have to pay a down payment, and they guarantee payment to your lender if you default on a loan above that specified amount – up to 25% of the loan amount.
Does a VA loan cover closing costs?
Not necessarily. One of the benefits of VA loans is that sellers can pay all of the loan-related closing costs. But then again, they are not obliged to pay any of them, so that means the payments will always be a product of negotiation between buyer and seller. In other words, the buyer, seller, and lender – each can pay different parts of the closing costs. Again, payments are a product of negotiations.
Online looking for a trusted company for your application for VA loans, Santa Barbara, CA? Contact HomePlus Mortgage today at 800-810-PLUS (7587).