One of the biggest concerns for the military now in California is the question of affordability.
Some people have bought into the myth that the VA loan limit in California is far less than the median price of a home This thought actually is really just a myth. The median price of a home on in Lake Forest is around $680,000 and that is a bit of a sticker shock for some especially if you are relocating from somewhere in the south like Texas. The VA limit on Oahu for a zero down payment loan is $690,000. More expensive homes can be purchased on a VA loan with a down payment. The interest rates on VA loans are considerably lower than traditional loans as well.
Active military also benefits from using BAH toward mortgage payments. Using this allowance for mortgage payments rather than rent is an investment back into your property.
If you currently have a VA loan on a property where you live you may be thinking you have tapped out on your loan benefits and you don’t qualify for a VA loan. This is also a common misconception of VA loans. Truth is that as long as the first loan gets paid in full you are eligible to apply for a brand new VA loan. Families with both spouses tied to the military can actually have two loans at one time.
VA loans are open to active military, reservists, veterans and military retirees.
Did you know you can purchase a foreclosed or short sale property with a VA loan? You Can! Some people don’t bother looking as discount properties because they feel the appraisal process of a VA loan is a lot stiffer and not worth the trouble because the loan will just be denied. The appraisal process on a VA loan is actually no different than a traditional appraisal. VA appraisers are making certain that they are backing good loans. The VA is looking to approve loans on homes that if the home were sold the day after closing the service member could move on without financial damage.
Read More: How much is the VA Funding Fee?
So if you are a member of the military relocating to Lake Forest or anywhere around the county and considering purchasing a home, it may be more affordable to you than you realize. For more information on purchasing and how to start the VA Loan process contact me today.