Helping America’s Veterans Achieve Homeownership

by Sheri Troy on June 10, 2011

In San Diego, nearly 70 percent of the homes we sell are to active military or retired military personnel.  We feel very fortunate to help each and every one of our servicemen and women through the homebuying process. Considering you help keep us safe, we feel privileged every time military personnel trust us to assist with a new home purchase.

Military personnel are very fortunate to have some wonderful benefits through the Veterans Administration to help with housing needs.  There are many questions about VA financing, and we hope we can help answer just a few of your questions.

First, who is eligible for a VA loan?

• Veterans

• Active duty personnel

• Reservists/National Guard members

• Some surviving spouses

Click here to see how to apply or to read more about who is eligible.

Next, how do you apply for a VA loan?

Your lender needs to be approved through the Veterans Administration. Thankfully, we can offer this type of loan through Shea Mortgage.

What are VA loan limits by state and county?

Click here for a chart of the 2011 VA home loan limits for high-cost counties like San Diego.

What costs does the VA allow a seller to pay? 

Shea Homes can help you with some or all of the following costs associated with a VA loan.  This does not mean the seller is required to pay these costs, it just means they can.

  • Buyer’s closings costs
  • Payment of points associated with loan
  • Buyer’s VA funding fee
  • Points on a permanent interest rate buydown or temporary interest rate buydown
  • Payoff of credit balances or judgments on behalf of the buyer.
  • Gifts such as a television set or a microwave (yes you read this right)

There is a 4 percent limit to what the seller can pay for a VA buyer, however that 4 percent does not include normal discount points and payment of closing costs.

Read more in the VA Lenders Handbook.

A few more big benefits to VA home loans

  • No private mortgage insurance. Not only does the VA not require PMI (Private Mortgage Insurance), it also prohibits lenders from requiring it.
  • Basic Allowance for Housing (BAH) is an entitlement from the U.S. military that is provided to many military members. When applying for a mortgage, this benefit will be very valuable as it enables a lender to easily validate and calculate the loan amount that you qualify for and the ability to repay. Click here to see your allowance by location and rank.
  • Other allowances for the military

Lastly,  if you still have questions,  you might find the answer here. FAQ’s on VA Home Loans

I hope this has helped you with a few of the questions you may have about obtaining a VA loan.  We look forward to helping your dream of homeownership come true.

{ 1 comment… read it below or add one }

Concrete Pumps September 23, 2011 at 10:49 am

Thanks for this post and support for the troops. Given this less than favorable economy and its current outlook, its important for all avenues of home buying and ownership information to be available for those currently in the position to move that direction, or for those who are in a struggle at this time keeping finances together. Just wanted to say thanks for taking the time and your support. Dave

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