VA Loans

VA Loans: Zero Down and Other Great Benefits

Did you know that VA loans have some of the greatest rewards in all of home financing? These special nonconventional loans are reserved exclusively for servicemembers, veterans and certain others who have served the United States. They are insured through the U.S. Department of Veterans Affairs, which means they are minimal risk to lenders. In turn, lenders can fund these loans for clients even if they have less-than-perfect credit. If you would like to purchase in Bakersfield, Sacramento, or Placer County, CA, our loan officers are here to help at every step. Contact us to get started.

Understanding VA Loans

VA loans are a type of nonconventional loan. Nonconventional loans are funded through private lenders, but insured through the federal government. Conventional loans, conversely, are not in any way funded or insured through the government. VA loans are just one type of nonconventional financing. Other common types of conventional loans include USDA loans (insured through the U.S. Department of Agriculture), FHA loans (insured through the Federal Housing Administration).

There are a few characteristics of VA loans that make them unique. One of the greatest of these is that they do not require any down payment. Coming up with the cash for a down payment can be one of the most difficult steps in purchasing a home, so this is a wonderful benefit to consider. Additionally, closing costs for VA loans can be incorporated into the value of the loan, which further helps with up-front costs of financing. Private mortgage insurance is not required for VA loans because of their government backing, which helps save in costs month after month. There are no prepayment penalties for those who wish to pay off their mortgages early, and assistance is available for those who are struggling to make payments.

VA Loan Eligibility

To get a VA loan, you must first obtain a certificate of eligibility (COE). The COE is granted through the VA to those who qualify. Mark Avila and his team can help you get the paperwork you need to get a COE and complete the application process quickly. There are a few groups who qualify for VA loans. They include:

  • Current servicemembers who have served 90 consecutive days of active service during wartime or 181 days of active service during peacetime
  • Veterans who have met similar requirements of length of service as current servicemembers
  • Reservists and National Guardsmen who have served 6 or more years
  • Surviving spouses of veterans who were killed during service or because of a service-related injury
  • Certain other people who served in organizations that have aided the U.S. government

VA Loan Uses

You can use your VA loan to purchase a home or to complete renovations on a new or existing home. VA loans may be used for traditional single-family homes and for certain approved condominiums and approved manufactured homes. We can help you determine if the home you’re interested in can be purchased with a VA loan.

Get Started Today

You have made a great gift of service to our country, and we’re proud to help facilitate your home financing. To learn more about VA loans for purchase in Bakersfield, Sacramento, and Placer County, CA, contact Mark Avila Loans. We’re happy to set up a consultation or answer any questions you have.