VA LOANS

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Our Zero Cost Rates Are About .50% Below The Average Rates Shown in The Trends Below

 

 

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2021 California VA Loan Limit Info:   

 

MAJOR 2020 UPDATE for VA Purchase loan limits! There is no longer any limit on VA Purchase loan amounts up to 100% of sale price.  This means you can buy any priced home with 0% down payment as long as you qualify based on income and credit.

 

For VA Refinance loan limits you can go 100% of the property value UP TO the base limits listed below by county PLUS 75% of the addittional property value OVER these amounts.  For all counties not listed below, the base limit is $548,250.  Cash Out Refis can go 100% LTV again, but pricing is MUCH better at 90% LTV.  

 

ALAMEDA  $   822,375   SAN BENITO  $     822,375
CONTRA COSTA  $   822,375   SAN DIEGO  $     753,250
EL DORADO  $   598,000   SAN FRANCISCO  $     822,375
LOS ANGELES  $   822,375   SAN LUIS OBISPO  $     701,500
MARIN  $   822,375   SAN MATEO  $     822,375
MONO  $   548,250   SANTA BARBARA  $     660,100
MONTEREY  $   739,450   SANTA CLARA  $     822,375
NAPA  $   816,500   SANTA CRUZ  $     822,375
NEVADA  $   548,250   SOLANO  $     550,850
ORANGE  $   822,375   SONOMA  $     707,250
PLACER  $   598,000   VENTURA  $     739,450
SACRAMENTO  $   598,000   YOLO  $     598,000


V.A. loans all have the same categories of costs no matter which lender, broker, or credit union it is funded through. The only significant differences are the interest rate and the loan point cost (or credit) you are paying (or getting). To compare loan quotes or Loan Estimates, it is most important to just focus on the RATE and the associated Discount / Origination Fees and/or Lender Credit offered for that rate.

 

 

VA Loan Cost Info:

 

Below is a Breakdown of all VA LOAN COSTS (Items 1,2,3) and OTHER CLOSING CASH NEEDS (Items 4,5)

 

1. Loan Fees – Loan fees come from all the reports, services, and other standard items involved with a home loan, such as: Title Insurance, Escrow Fee, Property Appraisal, Lender Underwriting, Document Fees, Credit, Recording, Tax Service, and Notary Fees. The Total Loan Fees typically range between $1,200 and $2,400 depending on the loan.  All of the loan fees can be paid for by the lender credit in #3 below. If you chose an interest rate that comes with a lender credit in #3 below, then you can obtain a zero-point, zero-fee loan where the above $1,200 – $2,400 is paid for you. 

 

2. V.A. Funding Fee – This fee is charged by the V.A. on every V.A. loan (purchase or refinance) unless you are receiving disability payments from the VA or are considered at least 10% disabled.  In that case, the fee is waived entirely.

Otherwise, this fee is .50% of the loan amount for IRRRLs (Streamline Refinances) , and 2.3% – 3.60% for purchases and regular or cash out refinances. This fee can also be covered by the lender credit explained in #3 below for a zero-cost, zero-funding fee home loan. See the Table below to find out which V.A. Funding Fee applies to your loan. 

 

As of 2021 the VAFF is the same for all military branches. 

 

2021 VA Funding Fee Table

First Time Use Benefit

Subsequent Use of Benefit

Loan Type Down Payment        
Purchase or 0 - 4.99% 2.30% 2.30% 3.60% 3.60%
Construction 5 - 9.99% 1.65% 1.65% 1.65% 1.65%
10% or More 1.40% 1.40% 1.40% 1.40%
Cash Out Refinances Max 100% LTV 2.30% 2.30% 3.60% 3.60%
IRRRLs (Rate Refis)   Require No Appraisal or Income/Asset Docs! No Equity Required! 0.50% 0.50% 0.50% 0.50%
Veterans w/ 10%+ Service Related Disability Income are Excempt! Funding Fee Waived 0.00% 0.00% 0.00% 0.00%

 

3. Points/Discount Fees – Points (also called Discount Fees) are the main variable cost when obtaining a home loan. You have a choice to "buy down" the interest rate to get a lower interest rate, or take a higher rate and get paid a Lender Credit. Lender Credits can pay for items #1, #2, and #5!   When rates are really low, even the “higher” rates are low.  For example, 1.75% might be the low-end of the interest rate range and 2.75% the high end of the interest rate range.  At the low end of the range, you pay a lot in points and fees, and at the high end you GET PAID.  Now, even the high end of the rate range the rates are still very low.   Most borrowers choose a mid to high range in order to get a large Lender Credit which pays for all their items 1,2, & 5! 

 

4. Down Payment – With V.A. Loans, there is no down payment required unless you want a loan for greater than the current county limit for V.A. loans. See top for county loan limits. You can get a loan greater than the county limit if you put a down payment of 25% of just the amount above the county limit.

 

5. Prepaids – Prepaids are simply things you have to pay anyways (daily interest, property taxes, & homeowner's insurance) and thus are not really "costs".  Also funds for the initial setup of your escrow account for your upcoming property taxes and home owner’s insurance payments going forward are also Prepaids.  The escrow account balance is still your money.  These are not costs and have nothing to do with which lender or rate you elect. They are simply a function of when your loan closes and how much your property taxes and property insurance are. These are not costs of obtaining a loan, but are costs of owning a home.

 

 

 

 

 

 

Scot Presley - Presley Financial