VA loans San Diego offer a number of benefits for qualified individuals, from $0 down payment and no mortgage insurance to limits on what buyers can pay in closing costs (the fees paid at the closing of a real estate transaction). It is particularly designed to benefit millions of veterans and military members. In fact, it has been around since World War II.
If you are planning to apply for VA loans San Diego and wondering on whether or not you are a good candidate, the following can help you make a self assessment.
You are eligible – There are certain service requirements to meet in order to be eligible for a VA-backed mortgage. In most cases, buyers are eligible if they have at least 90 consecutive days active duty during wartime or at least 181 consecutive days active duty during peacetime, or 6 years in National Guard or Reserves.
You are buying property as a primary residence – You cannot use a VA loan to buy a vacation home or for the purpose of investment. The primary purpose of VA loans is to provide veterans and military a place they can call home, where they live full time.
You plan to put $0 down payment – Considered to be the signature benefit of VA loans is being able to buy without a down payment. Conventional loans usually impose at least 5% as down payment requirement. On the other hand, the required minimum down payment by FHA lenders is at 3.5%.
You are not seeking a fixer-upper – This is one of the areas that the Department of Veterans Affairs scrutinizes. They will check whether or not you can live in structurally sound homes; meaning, VA loans typically cannot be used for fixer-upper properties.