Imagine moving into your L.A. dream home with zero down payment. If you are a veteran, service member, or qualifying spouse, you may be able to do just that with a government-backed VA loan. This is a wonderful opportunity which many service members and veterans in our area do not even realize is open to them.
What is a streamline financing for VA loans?
The VA has created an Interest Rate Reduction Loan program called the Streamline Refinance. This provides a way for current VA homeowners to lower their interest rate with little or no out-of-pocket costs. These loans can also be made faster and with less documentation than a typical loan. This is only available to veterans who are refinancing their original VA mortgage and utilized their original eligibility. “No Cost” Streamlines
Basics of VA streamline finance:
- No assumptions are allowed.
- The veteran cannot receive any cash back.
- VA does not require an appraisal, any income or employment verifications, no credit report and no termite report, yet the mortgage must have been paid as agreed for the last twelve (12) months and must be up to date at the time of refinancing.
- Any other liens must be subordinated to the VA loan.
- This loan can be done with “no out of pocket money” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
VA Loan Los Angeles, CA Benefits
If you qualify for a Los Angeles VA loan, you can look forward to the following outstanding benefits:
- Zero down payment.
- Low interest rates, even if you do not have a perfect credit rating.
- No requirement to purchase private mortgage insurance.
- No penalties for paying your loan off early.
- The Funding Fee may be waived if you are a disabled veteran.
- The seller may be willing to pay the closing costs.
- If you fall behind with payments at some future date, the VA might lend a hand.
VA loans are available for purchasing a home, but they are also available for refinancing through the interest rate reduction refinance loan (IRRRL) program. You can use an IRRRL program either to reduce your interest rate or to extract some of your home’s equity in the form of cash. IRRRL is fast and easy, cutting through a lot of the red tape common with other refinancing loans.
VA upgrade loans are available too, if for example you want to make your home more energy efficient.
Could You Be Eligible for a VA Loan in Los Angeles?
Unlike with an FHA loan, you do not need to be a first time homebuyer to purchase a home with a VA loan in L.A.
In order to qualify, you must either be a veteran, active duty service member, or a member of the Reserve or National Guard. You also need to meet a minimum active duty service requirement. This requirement varies, but it is typically around 90 days. If you are a surviving spouse of one of our nation’s veterans, you may also be eligible for a VA loan in Los Angeles.
The only other stipulation is that the home you are purchasing, building, or upgrading needs to fit within the eligibility requirements. It can be a house, a condominium, or a manufactured home or home lot.
Pacshores Can Help You Apply for a VA Loan in Los Angeles Today
Ready to find out whether you qualify for a VA loan in Los Angeles with zero down payment? Give us a call today and we can help you figure out whether your service record qualifies you..